India’s Solar PLI Tranche II To Be Implemented By SECI

• MNRE has announced SECI as the implementing agency of PLI Scheme tranche II for solar PV module manufacturing
• The President of India has now given her sanction to tranche II under which a budget of INR 195 billion has been earmarked
• There is focus on local content requirement to encourage manufacturers source their material locally

Indian government seeks to have a minimum module efficiency of 20.5% for manufacturing projects to be set up under Production Linked Incentive (PLI) Scheme tranche II which is to be implemented by the Ministry of New and Renewable Energy (MNRE) along with Solar Energy Corporation of India (SECI).

SECI is the implementing agency for this round of the PLI scheme unlike tranche I that was implemented by the Indian Renewable Energy Development Agency (IREDA), stated the MNRE in a communication to announce sanction of the President of India for tranche II. The second tranche has a budget of INR 195 billion (see India Clears Tranche II Of Solar PV PLI Scheme).

As per details issued by the ministry, the minimum module efficiency required will be 20.50% with temperature coefficient of Pmax better than -0.30% per °C, or 21% with temperature coefficient of Pmax equal to or better than -0.40% per °C. This level should be doable, even for PERC based modules, a technology for which the leading Chinese companies are offering products that reach efficiencies as high as 21.5%, as shown in the monthly TaiyangNews module ranking (see Top Solar Module Listing – August 2022).

There is also focus on local content requirement as a parameter in terms of local value addition (LVA). The PLI amount increases with increased LVA to encourage manufacturers source their material from the domestic market.

MNRE added that the maximum capacity that will be awarded to one bidder under the PLI scheme will be 50% of the capacity to be set up by the applicant. This awarded maximum bid capacity will include any capacity awarded as per LOA issued by IREDA in tranche I.

Manufacturing units selected as beneficiaries of the scheme will be eligible to get PLI on annual basis on sales of high efficiency solar PV modules for 5 years from commissioning or 5 years from scheduled commissioning date, whichever is earlier.

For a fully vertically integrated facility, from polysilicon to modules, the time allowed for commissioning is within 3 years from the date of letter of award (LOA), for wafer to modules it is within 2 years, and for cells and modules, it is within 1.5 years.

Winners will also be required to establish facilities for recovery and recycling of solar waste in order for the facilities to adopt sustainable manufacturing and adopt circular economy. Factories will need to source at least 20% of their electricity consumption to come from renewable sources.

If the winners of tranche I win capacity under tranche II, their new capacity will be considered greenfield even if it shares common facilities/infrastructure with the capacity built for tranche I.

For brownfield units, existing facilities can be expanded with addition of new production lines within the existing physical infrastructure. Such projects will be eligible for 50% of the PLI receivable for greenfield projects.

Under tranche I, there were 3 successful bidders namely Shirdi Sai Electricals (SSE), Reliance New Energy Solar and Adani Infrastructure. The trio won INR 45 billion to establish 8.737 GW fully integrated solar PV module manufacturing capacity.