Solar Industry Seeks PLI Scheme and Funding in Union Budget
Solar industry seeks PLI, PM-Kusum expansion, and viability gap funding.
Photo by American Public Power Association
Key Facts
Industry seeks enhanced PLI scheme
Second installment of PM-Kusum requested
Viability gap funding for energy storage
PLI for manufacturing ingots
UPSC Exam Angles
GS Paper III: Economy - Infrastructure: Energy, Investment models
GS Paper II: Government Policies and Interventions for Development in various sectors
Potential question types: Statement-based, analytical questions on government schemes and their impact
Visual Insights
More Information
Background
The history of solar energy development in India can be traced back to the early 1970s, with initial efforts focused on research and development. The Commission for Additional Sources of Energy (CASE) was established in 1981, later becoming the Department of Non-Conventional Energy Sources (DNES) in 1982, and eventually the Ministry of New and Renewable Energy (MNRE) in 2006. Early initiatives included solar water heating systems and rural electrification projects.
The Jawaharlal Nehru National Solar Mission (JNNSM), launched in 2010, marked a significant turning point, setting ambitious targets for solar capacity addition and driving policy support. This mission laid the foundation for India's current solar energy landscape, emphasizing grid-connected solar power and off-grid applications.
Latest Developments
In recent years, India has witnessed a surge in solar energy adoption, driven by declining costs and supportive government policies. The country has surpassed several milestones in installed solar capacity, becoming a global leader in solar power. The focus has shifted towards enhancing domestic manufacturing capabilities through initiatives like the Production-Linked Incentive (PLI) scheme.
Furthermore, there's growing emphasis on integrating renewable energy into the grid and addressing challenges related to intermittency through energy storage solutions. The government is also exploring innovative financing mechanisms and public-private partnerships to accelerate the deployment of solar projects. The future outlook involves further expansion of solar capacity, increased focus on energy storage, and greater integration of renewable energy into the overall energy mix.
Practice Questions (MCQs)
1. Consider the following statements regarding the Production-Linked Incentive (PLI) scheme for solar manufacturing: 1. The scheme aims to boost domestic manufacturing of high-efficiency solar modules. 2. It provides financial incentives based on incremental production and sales. 3. The scheme exclusively supports integrated solar module manufacturing units. Which of the statements given above is/are correct?
- A.1 and 2 only
- B.2 and 3 only
- C.1 and 3 only
- D.1, 2 and 3
Show Answer
Answer: A
Statement 3 is incorrect as the PLI scheme supports various stages of solar manufacturing, not exclusively integrated units. It supports the entire value chain.
2. Which of the following statements accurately describes the role of the Solar Energy Corporation of India (SECI)?
- A.It is primarily a research and development organization focused on solar technology.
- B.It is the nodal agency for implementing the Jawaharlal Nehru National Solar Mission (JNNSM).
- C.It is responsible for regulating solar power tariffs across India.
- D.It provides financial assistance to solar equipment manufacturers.
Show Answer
Answer: B
SECI is the nodal agency for implementing the JNNSM and other solar energy schemes in India.
3. Consider the following statements regarding the PM-KUSUM scheme: 1. It aims to provide financial and water security. 2. It focuses on solarizing agricultural pumps. 3. It promotes decentralized solar power generation. Which of the statements given above is/are correct?
- A.1 and 2 only
- B.2 and 3 only
- C.1 and 3 only
- D.1, 2 and 3
Show Answer
Answer: D
All three statements are correct. PM-KUSUM aims to provide financial and water security by solarizing agricultural pumps and promoting decentralized solar power generation.
Source Articles
PLI push, Kusum 2.0, PM Surya Ghar acceleration: Solar industry’s wish list for Union Budget - The Hindu
Tapping the shine: On the solar industry in India - The Hindu
India’s solar module manufacturing more than doubled to 144 GW in 2025 - The Hindu
India to continue to work with ISA, back solar adoption - The Hindu
PM-KUSUM at a Crossroads: Why India’s Solar Push Must Put Farmers First - Frontline