Solar PLI Schemes Get Two-Year Commissioning Extension
POWER & RENEWABLE ENERGY

Solar PLI Schemes Get Two-Year Commissioning Extension

India’s two solar Production Linked Incentive (PLI) schemes, launched in April 2021 and September 2022, have been granted up to two years’ extension for plant commissioning. The schemes, aimed at building domestic module capacity of 8.7 GW initially and 39.6 GW in Phase 2 with full backward integration to polysilicon, now give firms more time to complete delayed projects.
The extension follows setbacks between 2022 and 2024, including visa refusals for Chinese technicians and export restrictions on machinery from China. With visa issues easing this year, companies are hopeful of progress. However, with no change to the schemes’ end dates—March 2030 and March 2032—firms face a narrower window to claim incentives.
According to the Ministry of New and Renewable Energy (MNRE), the schemes have so far delivered 18.5 GW of module capacity, 9.7 GW of cells, and 2.2 GW of ingot-wafer production, with Phase 1 closest to completion.
PLI Phase 1, with an outlay of Rs 45 billion, targeted high-efficiency module making. It was awarded to Reliance New Energy, Adani Infrastructure, and Shirdi Sai Electricals. Of these, only Adani has met the commissioning deadline of December 2024, with Reliance beginning production this quarter and Shirdi Sai catching up.
PLI Phase 2, with an outlay of Rs 195 billion, sought expansion to polysilicon manufacturing. Yet concerns remain as deadlines for cells and modules (June 2025), wafers-cells-modules (December 2025), and polysilicon-to-modules (March 2026) approach with limited progress. A government move to extend the Approved List of Models and Manufacturers (ALMM) to wafers from June 2028 suggests wafer production is not expected before then, with a condition requiring at least three firms to achieve a combined 15 GW capacity.
A third scheme, the Advanced Chemistry Cell (ACC) battery storage PLI, approved in May 2021 with an outlay of Rs 181 billion, targets 50 GWh of capacity by December 2024. It too has been delayed, and even with a two-year extension, firms will have little time until the scheme’s end in December 2029.
Together, the three schemes represent Rs 421 billion in incentives. Meanwhile, India’s solar market has grown rapidly, with annual additions rising from 12 GW to 35 GW in FY25 and possibly 45 GW in FY26. This expansion has allowed non-PLI players to thrive, reducing the schemes’ overall impact while avoiding market distortions.
India’s toughest challenges remain in establishing large-scale polysilicon, wafer, and energy storage manufacturing. For now, China continues to dominate supply of storage solutions, with Indian projects committed to Chinese-made cells and systems through 2027.

India’s two solar Production Linked Incentive (PLI) schemes, launched in April 2021 and September 2022, have been granted up to two years’ extension for plant commissioning. The schemes, aimed at building domestic module capacity of 8.7 GW initially and 39.6 GW in Phase 2 with full backward integration to polysilicon, now give firms more time to complete delayed projects.The extension follows setbacks between 2022 and 2024, including visa refusals for Chinese technicians and export restrictions on machinery from China. With visa issues easing this year, companies are hopeful of progress. However, with no change to the schemes’ end dates—March 2030 and March 2032—firms face a narrower window to claim incentives.According to the Ministry of New and Renewable Energy (MNRE), the schemes have so far delivered 18.5 GW of module capacity, 9.7 GW of cells, and 2.2 GW of ingot-wafer production, with Phase 1 closest to completion.PLI Phase 1, with an outlay of Rs 45 billion, targeted high-efficiency module making. It was awarded to Reliance New Energy, Adani Infrastructure, and Shirdi Sai Electricals. Of these, only Adani has met the commissioning deadline of December 2024, with Reliance beginning production this quarter and Shirdi Sai catching up.PLI Phase 2, with an outlay of Rs 195 billion, sought expansion to polysilicon manufacturing. Yet concerns remain as deadlines for cells and modules (June 2025), wafers-cells-modules (December 2025), and polysilicon-to-modules (March 2026) approach with limited progress. A government move to extend the Approved List of Models and Manufacturers (ALMM) to wafers from June 2028 suggests wafer production is not expected before then, with a condition requiring at least three firms to achieve a combined 15 GW capacity.A third scheme, the Advanced Chemistry Cell (ACC) battery storage PLI, approved in May 2021 with an outlay of Rs 181 billion, targets 50 GWh of capacity by December 2024. It too has been delayed, and even with a two-year extension, firms will have little time until the scheme’s end in December 2029.Together, the three schemes represent Rs 421 billion in incentives. Meanwhile, India’s solar market has grown rapidly, with annual additions rising from 12 GW to 35 GW in FY25 and possibly 45 GW in FY26. This expansion has allowed non-PLI players to thrive, reducing the schemes’ overall impact while avoiding market distortions.India’s toughest challenges remain in establishing large-scale polysilicon, wafer, and energy storage manufacturing. For now, China continues to dominate supply of storage solutions, with Indian projects committed to Chinese-made cells and systems through 2027.

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