Solar energy has emerged as a pivotal solution to meet the growing energy demands in India and China. As both nations grapple with environmental challenges and the need for sustainable energy sources, solar panels offer a promising alternative. This guide delves into the intricacies of solar technology, its benefits, and the current landscape in these two rapidly developing countries.

Readers can expect to learn about the various types of solar panels available, their efficiency, and installation processes. We will explore government policies, incentives, and the role of solar energy in reducing carbon footprints. Additionally, the guide will provide insights into the economic implications and future trends in the solar industry in India and China.

By understanding the dynamics of solar energy, readers will be equipped to make informed decisions about adopting this renewable resource. Whether you are a homeowner, investor, or policy-maker, this guide aims to illuminate the path toward a sustainable energy future in these vibrant economies.

Can India Close the Gap with China in Solar Manufacturing?

China accounts for more than 80 percent of production in all manufacturing stages (such as polysilicon, ingots, wafers, cells, and modules) of solar panels. The last decade saw China emerge as the largest solar power manufacturer. How did they achieve this feat?

China started exporting photovoltaic (PV) cells to Europe just two years after it established its first domestic PV cell production line in 2002. By 2008, the export capacity reached 3,940 megawatts. However, after a decrease in demand due to the 2008 financial crisis, China decided to subsidize solar companies to boost the industry. Several projects like the Golden Sun project helped expand the solar capacity in China. This was supplemented by cheap capital, leading to overcapacity and wasted investment.

China had absolute domination over the solar manufacturing sector, with exports accounting for 7,500 MW in 2010. Over the years, the country has developed an extensive and optimized manufacturing infrastructure aiding large-scale production at a minimal cost per unit. The production cost of solar modules in China stands at around $0.15 / watt (around Rs 12.5), which is significantly cheaper compared to other major countries. In fact, the cost of solar PV components produced in China is around 10 percent lower than in India, 20 percent lower than in the United States, and 35 percent lower than in Europe.

The advancements in the domestic market are complemented by a strong demand for domestically manufactured solar modules, helping sustain the internal production capabilities. Another factor contributing to the reduced costs is China’s stronghold on rare earth elements that are essential for clean renewable energy technology. China has established supply chains for local sourcing of raw materials, cutting shipping costs and import taxes, hence reducing total production costs.

Technical Features of Solar Panels

Solar panels come with various technical features that determine their efficiency and suitability for different applications. Below is a comparison table highlighting key technical features of solar panels:

Feature	Monocrystalline Solar Panels	Polycrystalline Solar Panels	Thin-Film Solar Panels
Efficiency	15-22%	13-16%	10-12%
Lifespan	25-30 years	20-25 years	10-20 years
Space Requirement	Requires less space	Requires more space	Requires the most space
Temperature Coefficient	Better performance in high temperatures	Moderate performance in high temperatures	Poor performance in high temperatures
Cost	Higher initial cost	Lower initial cost	Lowest initial cost
Aesthetics	Sleek and uniform appearance	Bluish hue	Flexible and lightweight

Types of Solar Panels

Solar panels can be categorized into different types based on their manufacturing process and materials used. Here’s a comparison table of the different types of solar panels:

Type	Description	Advantages	Disadvantages
Monocrystalline	Made from a single crystal structure, offering high efficiency.	High efficiency, long lifespan, space-efficient	Higher cost compared to other types
Polycrystalline	Made from multiple crystal structures, slightly less efficient.	Lower cost, easier to produce	Lower efficiency and requires more space
Thin-Film	Made from layers of photovoltaic material, flexible and lightweight.	Lightweight, flexible, lower production cost	Lower efficiency and shorter lifespan

Where Does India Stand?

India has expanded its solar manufacturing capacity substantially over the past decade, with solar PV module manufacturing capacities expected to reach 95GW by the end of 2025, according to a report by Bengaluru-based clean energy consulting firm Mercom India. The country is looking to expand its manufacturing capacities in the coming years with considerable investment in research and development. States are endorsing domestic solar manufacturing through various policies.

The Production Linked Incentive Scheme was launched to reduce import dependence in the area of renewable energy. According to the Ministry of New and Renewable Energy, the scheme “aims to build an ecosystem for manufacturing high-efficiency solar PV modules in India.” Residential solar installation prices are much cheaper in India, mainly due to government incentives.

The cost of solar modules in India dramatically fell by approximately 90 percent during the period from 2009 to 2019. However, after 2020, the prices increased by almost 18 percent, mainly due to the quadrupling of the price of polysilicon. The government’s move to impose basic customs duty on imported solar modules and solar cells was insufficient to make the price of domestic modules competitive to imports.

Despite improvements in increasing its solar manufacturing capacity from 2.3 GW to 67 GW in the last 10 years, India has not yet reached China’s level, which in turn restricts the ability to attain cheaper costs of production. The Indian manufacturing sector in general faces outdated technology, slowing the research and development in the domestic solar manufacturing sector.

Government Initiatives

The Indian government has reinstated the Approved List of Models and Manufacturers (ALMM) mandate from April 1, 2024. This move creates a non-tariff barrier for Chinese products. Only solar products and manufacturers on the MNRE-approved ALMM are eligible for government-backed projects. The policy was introduced by the MNRE to protect the domestic industry from the dumping of Chinese products.

The ALMM mandate gives domestic manufacturers the opportunity to serve a sizable market by creating a non-tariff barrier for Chinese products. The ALMM includes models and manufacturers of solar modules that comply with the Bureau of Indian Standards (BIS). This presents a golden opportunity for local manufacturers, particularly in two key sectors: rooftop solar and utility-scale projects.

Conclusion

India’s journey towards self-sufficiency in solar manufacturing is marked by significant strides in capacity building and government support. While challenges remain, such as outdated technology and reliance on imports, the commitment to reducing dependency on Chinese solar products is evident. The ALMM initiative and other government policies are crucial in fostering a robust domestic solar manufacturing ecosystem.

As India aims to achieve its ambitious renewable energy targets, the focus on improving the quality of domestically manufactured solar modules is essential. The path forward requires continuous investment, technological advancements, and a supportive policy environment to ensure that India can close the gap with China in solar manufacturing.

FAQs

1. What are the main types of solar panels?
The main types of solar panels are monocrystalline, polycrystalline, and thin-film solar panels, each with distinct characteristics and efficiencies.

2. How does India plan to reduce its dependency on Chinese solar products?
India plans to reduce dependency through initiatives like the ALMM mandate, which creates non-tariff barriers for Chinese products and promotes domestic manufacturing.

3. What is the current solar manufacturing capacity in India?
India’s solar manufacturing capacity is expected to reach 95GW by the end of 2025, with significant investments in research and development.

4. Why are solar module prices increasing in India?
Solar module prices in India have increased due to the rising costs of polysilicon and insufficient government measures to make domestic modules competitive against imports.

5. What role does the government play in promoting solar manufacturing in India?
The government plays a crucial role by implementing policies like the Production Linked Incentive Scheme and the ALMM mandate to support domestic solar manufacturing and reduce import dependence.