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Solar PLI Funds Yet to Reach Manufacturers
18 Mar
Summary
- No funds disbursed under India's ₹24,000 crore solar PLI scheme by February-end.
- One-year post-commissioning period not yet completed for awarded manufacturing projects.
- Challenges in upstream component manufacturing due to domestic ecosystem immaturity.
Solar equipment manufacturers have not yet received any funds under India's ₹24,000-crore Production Linked Incentive (PLI) scheme for high-efficiency solar PV modules. As of February 28, 2026, no disbursements have been made, as the scheme mandates fund release one year after the commissioning of awarded manufacturing projects.
This post-commissioning period has not yet been completed for the projects. Despite the delay in fund release, the scheme has facilitated the establishment of substantial manufacturing capacities, including approximately 30 GW for solar PV modules and 10.5 GW for solar PV cells.
However, progress in upstream components like polysilicon and wafer manufacturing has been slower. This is attributed to difficulties in setting up facilities and a nascent domestic ecosystem. The government acknowledges the reliance on imported raw materials and expertise in these segments.
To address these challenges and reduce import dependence, the PLI scheme encourages vertical integration. Additionally, other policy measures support domestic production of ancillary inputs like solar glass and aluminium frames. Skill development programs are also underway to build a capable workforce.
