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Global Building Integrated Photovoltaics (BIPV) Market 2022-2026 - Developed Countries Lead Market, Developing Economies to Spearhead Future Growth

Low incentive could dampen interest in PLI scheme for solar manufacturing

The Rs 4,500-crore Performance Linked Incentive (PLI) scheme for solar manufacturing has not met industry expectations since domestic manufacturers could end up getting barely 3-5 per cent of the sale value of their solar cells and modules through this scheme. With the government claiming record clean energy capacity of 450 GW by 2030, the scheme aims to support end-to-end indigenous solar power capacity in the country. “Industry calculations indicate that in terms of capital expenditure, PLI would be in the range of 15-25 per cent. The incentive on the capex will come after five years. The incentive on sale is variable as no one knows how much they will sell. For foreign investors, the incentive is further reduced due to customs duty,” said a senior executive of a leading solar company.

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