Indian Solar Cell Production Set To Expand But Challenges Galore

Solar Cell Production India Set To Expand But Challenges Galore

Indian solar manufacturing industry is now under transition. While currently, a handful of solar cell makers are into the production of solar cells, the numbers are set to expand. A number of existing solar module manufacturing companies have now planned to add new solar cell production lines in the next two to three years.

This comes at a time when the Ministry of New and Renewable Energy (MNRE) has proposed to bring solar cell production under an ALMM (Approved List of Models and Manufacturers) akin to ALMM for solar modules. The imposition of ALMM earlier, by the ministry, put forth a non-tariff barrier to boost domestic solar module production by halting the penetration of cheap Chinese solar modules.

An introduction of ALMM like scheme for solar cells is now seen as a bold and pro-Make In India move to protect the industry which is currently in a nascent stage. Currently, firms like Premier Energies, Websol, Jupiter International, Emmvee, Adani Solar and others are into solar cell production. Waaree Group is now set to start cell production from its Gujarat plan and an expanded backward integration from its proposed Odisha plant.

However, the list is set to be expanded with the plans of other firms like Rayzon Solar, Goldi Solar, En-icon, Insolation Energy, Navitas Solar and Saatvik Solar to jump onto the bandwagon. Most of them want to jump onto the bandwagon at the earliest to take the benefit of the proposed ALMM due to its specified time period clause.

While the commissioning of new solar cell production is likely to boost the production of India’s domestic solar cell capacity and to somehow put a dent on the avenues of foreign firms who are exporting their solar cells in the Indian market. Further, the plans of companies like Premier Energies, Adani Solar, Emmvee and Waaree and others to start wafer and ingot production are likely to boost India’s backward integration of the solar manufacturing system. However, it is likely to add new challenges to it.

Surender Pal Singh, Chairman of Premier Energies told Saur Energy that one of the key issues that has limited the growth of solar cell manufacturing in India is the high capital requirement of the sector for setting up of these plants. While solar module manufacturing is more of an assembly line, solar cell production is far more complex.

Pal also batted for bringing ALMM-like support for wafer and ingot production by Indian firms too. Premier Energies procured a solar cell production equipment way back in 2012 from a German company and is now working with its 2 GW solar cell line, producing mono-PERC solar cells.

“Solar cell production is a processing-based system and not as simple as module production which is more like an assembly line. The CAPEX for solar cell lines is around 4-5 times higher than module lines. It takes quite some time to commission solar cell lines and standarise the process. It took us 4-5 months to stabilize the line and ensure the efficiency that you want,” Singh told Saur Energy.

DV Manjunath, MD of Emmvee Group, another solar cell producer in India said that beyond the capital, the sector also suffers from the lack of skilled workforce having expertise in solar cell production.

“As the whole industry is new to the Indian solar market, beyond CAPEX, lack of skilled and experienced workforce to handle the work had been a challenge for the country,” he told Saur Energy.

Solar cell manufacturers in India said that while India’s current solar cell production capacity stands at around 8 GW, it is likely to go upto 24 GW by FY26.

Some solar cell makers informally also talked about the threat from changing geopolitics which can affect the procurement of key machinery and tools required for the production of solar cells, wafers, ingots and others in India in the days to come.