India’s Ascendance In The Global Solar PV Market: A Focus On Export Growth And Domestic Manufacturing – SolarQuarter

In recent years, India has emerged as a significant contributor to the global solar photovoltaic (PV) market, capitalizing on its abundant sunlight and growing commitment to renewable energy. Central to India’s solar export growth are the Harmonized System of Nomenclature (HSN) codes, specifically 85414200 and 85414300, which classify photovoltaic cells and modules for international trade. The export of solar modules has notably increased in 2024, with more panels being exported to the US market than to any other solar PV market.

HSN code 85414200 denotes photovoltaic cells not assembled into modules or panels. These cells are the foundational components of solar panels that convert sunlight into electricity. On the other hand, HSN code 85414300 covers photovoltaic cells assembled into modules or panels, representing the final products used in solar energy systems. India’s solar export landscape reveals a disparity between module and cell manufacturing capacities. Solar module exports have thrived, driven by India’s robust manufacturing capabilities. However, solar cell manufacturing capacity has not been as competitive. This imbalance has prompted governmental interventions, such as the Approved List of Models and Manufacturers (ALMM), introduced to strengthen the domestic solar market and enhance export prospects for Indian manufacturers.

Solar module exports surged just before the implementation of ALMM, reaching ₹2,64,984.96 lakh in March 2024. Implemented from April 1, 2024, the ALMM notification aims to stimulate demand for domestically manufactured solar panels, prioritizing them for government projects and incentives. This initiative incentivizes domestic manufacturers to scale up production, aligning with India’s renewable energy targets and fostering a self-reliant solar industry ecosystem. According to the Department of Commerce, in the first three months of 2024, India’s total solar PV exports, comprising both modules and cells, surpassed ₹5,53,525.15 lakh. Among these exports, solar modules accounted for ₹5,47,827.39 lakh, while solar cells accounted for ₹5,697.76 lakh.

The ALMM notification, while encouraging for domestic manufacturers, has raised concerns among solar project developers regarding competitive pricing. Some argue that restrictions on exports could help maintain competitive pricing in the domestic market. Nonetheless, the increased focus on domestic manufacturing, fueled by ALMM, creates a conducive environment for Indian solar manufacturers. With rising demand for solar panels domestically, manufacturers have the opportunity to expand operations and export competitively priced products.

India’s comparative advantage in solar module manufacturing positions it favorably to meet the global demand for solar energy solutions. Leveraging its manufacturing prowess and technological expertise, India can emerge as a key exporter of solar panels and related components. Furthermore, India’s commitment to sustainability aligns with global decarbonization efforts, driving demand for solar energy solutions worldwide. This presents a significant opportunity for Indian manufacturers to contribute to the global transition to sustainable energy.

India’s solar export growth is propelled by advancements in photovoltaic technology, supportive government policies, and increasing global demand for renewable energy solutions. With a renewed focus on domestic manufacturing and export-oriented strategies, India is poised to emerge as a leading player in the global solar energy market, driving sustainable development and economic growth.

Related

This post was originally published on 3rd party site mentioned in the title of this site