Domestic sourcing of solar wafers, ingots: How will it curb Chinese imports?, Pg15

Key Highlights:

• Government extends domestic sourcing mandate for solar equipment to include wafers and ingots, effective June 2028.
• The mandate primarily applies to government-backed, utility-scale, commercial, and industrial projects, including schemes like PM Surya Ghar.
• Current domestic manufacturing capacity includes 172 GW of solar modules and 27.2 GW of cells, but only around 2 GW of ingots and wafers.
• A new ALMM List-III will be created for wafers, requiring manufacturers to have equivalent ingot production capacity.

Detailed Insights:

• The extension aims to reduce India's import dependence on critical components like wafers and ingots, predominantly sourced from China.
• Polysilicon is processed into ingots, which are sliced into wafers, used to manufacture solar cells, and assembled into modules.
• The Ministry of New and Renewable Energy (MNRE) will notify domestic wafer manufacturers after at least three independent units with a combined capacity of 15 GW are available.
• Projects with bid submissions after the 'cut-off date' must source modules, cells, and wafers from ALMM List-I, List-II, and List-III, respectively.
• The existing PLI scheme for solar PV modules, with an outlay of Rs 24,000 crore, aims to install 65GW per annum of integrated manufacturing capacity.
• Upstream segments like polysilicon refining and ingot/wafer manufacturing face challenges due to capital intensity and price pressures.

Key Concepts Involved:

• Solar Wafer: A thin slice of semiconductor material, like silicon, used to manufacture solar cells.
• Ingot: A mass of metal, typically silicon, cast into a specific shape for further processing.
• ALMM (Approved List of Models and Manufacturers): A list maintained by MNRE specifying eligible domestic manufacturers for government projects.