Starting on April 1, 2022, solar modules and solar cells imported into India will be subject to a 40% and 25% basic customs duty (BCD) respectively. Concurrently, the Indian government is launching the Production-Linked Incentive (PLI) for Large Scale Electronics Manufacturing under which 10GW worth of cells and modules manufacturing facilities will be subsidized.

Under these conditions, the PV industry expects a shift in the supply chain of Indian PV projects in 2022, from being today dominated (>85%) by importation of foreign (mainly Chinese) modules to a more domestic-centered supply chain. A developer may indeed ramp up its own production capacity to secure steady supply of modules, while capturing directly some of the government subsidies. However, it is generally challenging to maintain a high level of quality through any disruption of the supply chain.

Contact us on how to control the quality of module components from a third-party quality inspection to secure long-lasting components for Indian projects.