+
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.

Related Stories

Gold Stories

Next Story
Infrastructure Urban

NABARD Holds Seminar on Vigilance, Integrity and Good Governance

National Bank for Agriculture and Rural Development (NABARD) organised a seminar on “Vigilance: Strengthening Integrity and Good Governance” on 25 August 2026 at its Head Office in Mumbai as part of the ongoing Vigilance Awareness Campaign 2026 being observed from 17 August to 16 November 2026, with the theme “Probity for Prosperity."" The seminar was graced by Suresh N Patel, Former Central Vigilance Commissioner, Government of India, as the chief guest and keynote speaker.  The programme was attended by G S Rawat, Deputy Managing Director, Dr Ajay K Sood, Deputy Managing Dire..

Next Story
Equipment

XCMG Unveils World's First 14,000-Ton Ring Crane for Heavy Lifting

XCMG has announced that the first main unit of the world's first 14,000-ton ring crane has rolled off the production line, marking a historic breakthrough in ultra-heavy lifting technology. Jointly developed by XCMG and Sinopec Heavy Lifting & Transportation Co., Ltd., the crane will be the largest-capacity ring crane ever built, setting a new benchmark for major construction projects worldwide.The crane features a modular configuration comprising two main units that work in tandem. The first main unit has completed final assembly and can independently perform lifting operations. Once both..

Next Story
Infrastructure Urban

Thriveni Logistics orders 200 tip trailers from Jagdamba trailers

Jagdamba Trailers (JTPL), one of India’s growing trailer manufacturers, has secured a significant order for 200 Tip Trailers from Thriveni Transport and Logistics Pvt. Ltd., a leading mining and logistics company serving operations across India and overseas.The order, placed for iron ore transportation, is a major milestone for JTPL, particularly as the company secured the business after competing with more than 10 established trailer manufacturers. It also strengthens an already successful relationship between the two companies. Approximately one and a half years ago, Thriveni Transport and..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code