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Source-This post on Solar surge has been created based on the article “India’s solar industry must grow without compromising on quality” published in “The Hindu” on 1 April 2024.
UPSC Syllabus – GS Paper 3 – Effects of Liberalization on the Economy, Changes in Industrial Policy and their Effects on Industrial Growth
Context – The government has passed the Approved Models and Manufacturers of Solar Photovoltaic Modules (Requirement for Compulsory Registration) Order, 2019. As per this order, module makers will have to allow inspection of their manufacturing facilities by the National Institute of Solar Energy((NISE) and get approved.
It aims to discourage solar power project developers from relying on imported panels.
What are the provisions of Approved Models and Manufacturers of Solar Photovoltaic Modules (Requirement for Compulsory Registration) Order, 2019?
1) Inspection by National Institute of Solar Energy – Module makers will have to allow inspection of their manufacturing facilities by the National Institute of Solar Energy. If the manufacturing facility is approved by the National Institute of Solar Energy, then the facility gets a certificate that it is legitimately manufacturing solar panels within its premises and not importing modules.
2) Incentive for approved companies– The approved companies will be eligible to compete for the government’s tenders for its flagship solar energy programs and the recently announced PM solar rooftop scheme.
Read more- Solar Energy in India: Status, Challenges and Way Forward
What was the need to bring The Approved Models and Manufacturers of Solar Photovoltaic Modules (Requirement for Compulsory Registration) Order, 2019?
1) In the backdrop of deteriorating India-China diplomatic relations, the government has passed this order which will restrict imports from China. This would reduce over-dependence on China.
2) India has an ambitious target of producing about 500 GW, nearly half its requirement of electricity, from non-fossil fuel sources by 2030. However, meeting the targets would require import of many more panels and component cells from China. Thus, the new order would encourage domestic manufacturing of panels and prevent Indian companies from losing out on orders to the cheaper Chinese panels.
To ensure affordable solar energy to Indian people, domestic manufacturers should be subject to stringent quality checks and should not be allowed to compromise on cost and quality merely on nationalistic grounds.
Question for practice
What were the reasons to introduce The Approved Models and Manufacturers of Solar Photovoltaic Modules (Requirement for Compulsory Registration) Order, 2019?
