India’s ₹24,000 Crore Solar Revolution: The PLI Scheme Transforming Renewable Energy

• Published
• By Anupam Nath

India is rapidly emerging as a global powerhouse in clean energy, and at the heart of this transformation lies the Production Linked Incentive (PLI) Scheme for High Efficiency Solar PV Modules. Launched by the Ministry of New and Renewable Energy (MNRE), Government of India, this landmark initiative aims to make India self-reliant in solar manufacturing while reducing dependence on imported components.

A Vision for Self-Reliant Energy

The PLI Scheme has been designed to build gigawatt-scale manufacturing capacity for high-efficiency solar modules within India. With a total financial outlay of ₹24,000 crore, the scheme provides production-based incentives to selected manufacturers over five years after commissioning. This incentive directly rewards companies for producing and selling high-efficiency solar panels made in India.

By doing so, the government not only promotes domestic production but also ensures that cutting-edge solar technologies are brought to India, empowering local industries to compete globally. The program is technology-agnostic, allowing various advanced solar cell technologies — with higher efficiency modules being incentivized the most.

Two Tranches, One Goal

The implementation of the PLI Scheme is divided into two major tranches:

Tranche-I (2021):

Approved by the Union Cabinet on April 7, 2021, with an outlay of ₹4,500 crore, this phase was executed by the Indian Renewable Energy Development Agency (IREDA). Through a transparent bidding process, three companies were awarded contracts to establish a cumulative capacity of 8,737 MW of fully integrated solar module manufacturing.

Tranche-II (2022):

Following its success, the Union Cabinet approved Tranche-II on September 21, 2022, with a much larger budget of ₹19,500 crore. Implemented by the Solar Energy Corporation of India (SECI), this phase awarded 11 manufacturers to set up 39,600 MW of manufacturing capacity — both fully and partially integrated.

Together, these two tranches are setting the stage for India to become a global leader in solar manufacturing, capable of meeting domestic demand and exporting green technology worldwide.

Impact Beyond Manufacturing

The PLI Scheme is not just about numbers or megawatts — it’s about building a sustainable energy ecosystem. It will:

Generate thousands of green jobs across engineering, manufacturing, and logistics.

Attract foreign investment and advanced technology into the Indian solar sector.

Strengthen India’s position in the global renewable energy supply chain.

Contribute significantly to the country’s Net Zero goals and the broader Atmanirbhar Bharat (Self-Reliant India) mission.

The Road Ahead

As India transitions toward a cleaner energy future, the PLI Scheme stands as a cornerstone policy driving both industrial growth and environmental sustainability. By investing in innovation and local capacity, India is not only lighting up homes — it’s po

wering the future of global energy.