19 March 2026 at 05:38 pm IST
India is planning to introduce a new rule that will require all clean energy projects to use locally manufactured solar ingots and wafers starting June 2028. This move is part of the government’s broader strategy to boost domestic manufacturing and reduce heavy dependence on imports, particularly from countries like China. At present, India relies significantly on imported solar components, especially in the upstream segment such as ingots and wafers, even though it has expanded its solar module production capacity. By enforcing local sourcing, the government aims to build a more self-reliant solar supply chain and strengthen the country’s position in the global renewable energy market. The policy is also aligned with India’s ambitious clean energy targets, including achieving 500 GW of non-fossil fuel capacity by 2030. Ensuring domestic production of critical components is expected to enhance energy security, reduce supply disruptions, and support long-term sustainability goals. However, the transition may pose short-term challenges for developers, as domestic manufacturing capacity for ingots and wafers is still developing. This could potentially lead to higher project costs initially until local production scales up and becomes cost-competitive. Overall, the move reflects a dual objective: accelerating the clean energy transition while simultaneously promoting “Make in India” manufacturing growth in the renewable energy sector.
