Efforts by the Indian government to promote domestic solar cell and module manufacturing are now getting a response from companies.
Premier Energies has announced plans to set up a new solar cell and module manufacturing line with 1 gigawatt of capacity. The company will invest Rs 4.8 billion ($68 million) into the new plant. The new line will increase the company’s cell and module production capacity from 500 megawatts to 1.5 gigawatts, making it one of the largest producers of cells and modules in India.
The new line will be located in the southern city of Hyderabad. It will be spread across 25 acres and is expected to be completed over the next two months.
Premier is among several existing and new companies looking to expand or set up new manufacturing capacities. These announcements have been bolstered by the Indian government’s recent announcements to push for self-sufficiency in cell and module manufacturing.
Around 80–90% of solar modules installed in India are imported from China. In spite of numerous measures in the past, India has failed to strengthen its domestic manufacturing capabilities, primarily due to low-cost Chinese imports.
Recent attempts by the government include the imposition of safeguard duties and plans to impose additional import duties up to 40% on Chinese cells and modules.