Industry Warns: India's Solar Future Threatened by Import Reliance on China

Industry insiders have warned that if the government does not take action to increase domestic manufacturing of critical components, India's solar mission may turn into an import-intensive project that is largely dependent on China. By 2030, India hopes to have 280–300 gigawatts (GW) of solar power, which will increase demand for parts like wafers and ingots used to create cells and modules.

As a result of several government initiatives, the domestic production of solar panels, solar roofs and cells has increased. Unfortunately, these factories' backward integration with the production of polysilicon ingots and wafers—a crucial component of the solar industry—remains minimal because the lack of import restrictions and tariffs forces all of these businesses to purchase from China, which sells these goods at significantly lower prices.

“The government has multiple options such as offering subsidy or levying an anti-dumping duty on import of polysilicon, ingot and wafers to boost local capabilities,” said a senior official of the Ministry of New and Renewable Energy (MNRE). A vital material component of solar panels is a high-purity form of silicon, polysilicon. Ingots are created by melting them at high temperatures, cutting them into wafers, and fabricating them into photovoltaic (PV) cells.

However, despite the meetings, a second official added that no decision had been made because polysilicon production requires high-purity silicon and is technologically and raw material intensive. In addition to using a lot of electricity, quartz must be extracted from a silica mine.