India-made Solar Photovoltaic (PV) Cells, Types and Key Components

Key Points of the Order

• Deadline for Adoption: By June 2026, solar companies must use domestically produced solar cells to be eligible for government procurement schemes.
  • Currently, Indian solar companies predominantly rely on solar cells imported from China and Southeast Asia.
• ALMM List-II: The MNRE will issue List-II of solar PV cells under the Approved List of Module Manufacturers (ALMM), effective from June 1, 2026. This list will include only companies that manufacture solar cells in India.

About Photovoltaic Cells

Photovoltaic (PV) cells, also known as solar cells, are the fundamental building blocks of solar panels, responsible for converting sunlight into electricity.

Key Components of a Photovoltaic Cell

• Semiconductor Layer: The primary material, often silicon, absorbs sunlight and generates electrical charge.
• Electrodes: These collect the electrical charge generated by the semiconductor material.
• Glass/Protective Layer: This protects the PV cell from environmental damage while allowing sunlight to pass through.

Types of Photovoltaic Cells

• Monocrystalline Solar Cells: Made from a single crystal structure, known for high efficiency.
• Polycrystalline Solar Cells: Made from silicon crystals that are melted and poured into molds, less efficient than monocrystalline cells.
• Thin-Film Solar Cells: Made by depositing thin layers of photovoltaic material on a substrate, these are flexible but less efficient.

Why is India Import-Dependent for Photovoltaic Cells ?

Lack of Domestic Manufacturing of Raw Materials

• India’s domestic capacity to produce the core components needed for photovoltaic cells is limited.
• Eg. Materials like wafers (used in PV cells) and ingots (a raw form of silicon) are not produced in sufficient quantities within India.

Cost-Competitiveness of Imported Cells

• Imported solar cells from countries like China are more cost-effective due to lower production costs.
• The cost of domestically produced solar cells is about 5 to 2 times higher than imported cells, even after considering Basic Customs Duty.

Lack of Advanced Manufacturing Technologies

• India lacks the advanced technologies and specialized production facilities required to manufacture high-efficiency photovoltaic cells at a competitive price.

Policy and Investment Gaps

• While the Indian government has launched various incentive schemes to promote solar energy, such as the PM KUSUM Scheme and the Atmanirbhar Bharat initiative, the domestic manufacturing sector has not been able to scale up quickly enough to meet demand.

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