Production Linked Incentive Scheme Tranche-I under National Programme on High Efficiency Solar PV Modules

The scheme “Production Linked Incentive Scheme Tranche-I under National Programme on High Efficiency Solar PV Modules" has been implemented by the Ministry of New and Renewable Energy, Government of India. It aims to promote the manufacturing of high-efficiency solar photovoltaic modules in India and reduce import dependence on renewable energy. Through this scheme, Production Linked Incentive (PLI) is provided to eligible manufacturer-beneficiaries for sales of high-efficiency solar photovoltaic modules, based on sales volume, performance parameters, and local value addition. The scheme is implemented by the Ministry of New and Renewable Energy through the Indian Renewable Energy Development Agency (IREDA). The scheme has a financial outlay of ₹4,500 crore over 5 years and supports domestic manufacturing capacity, technology adoption, integrated plants, sourcing of local material, and employment generation. Beneficiaries are selected through a transparent bidding process, and incentives are disbursed annually, subject to scheme conditions

Objectives:

• To build up solar PV manufacturing capacity of high-efficiency modules.
• To bring cutting-edge technology to India for manufacturing high-efficiency modules. The scheme will be technology agnostic in that it will allow all technologies. However, technologies that will result in better module performance will be incentivised.
• To promote the setting up of integrated plants for better quality control and competitiveness.
• To develop an ecosystem for the sourcing of local material in solar manufacturing.
• Employment generation and technological self-sufficiency.

Incentive Benefit:

1. Production Linked Incentive (PLI) to eligible manufacturers.
2. Financial outlay: ₹4,500 crore.
3. PLI available for 5 years from commissioning or scheduled commissioning date, whichever is earlier.
4. PLI calculation formula:
5. PLI (₹) = Sales Volume (Wp) × Base PLI Rate (₹/Wp) × Tapering Factor × Local Value Addition.

Additional Benefit Conditions:

1. PLI amount increases with increased local value addition.
2. Brownfield projects are eligible, but the PLI rate is 50% of the Greenfield rate.
3. PLI rates are subject to tapering factors:

• Year 1: 1.4
• Year 2: 1.2
• Year 3: 1.0
• Year 4: 0.8
• Year 5: 0.6

1. The applicant should be a manufacturer proposing minimum integration across solar cells and modules.
2. The applicant should undertake to set up a manufacturing plant of minimum 1,000 MW capacity.
3. The applicant should meet minimum module performance parameters:
4. Minimum module efficiency of 19.50% with temperature coefficient better than -0.30% per degree Celsius; or
5. Minimum module efficiency of 20% with temperature coefficient equal to or better than -0.40% per degree Celsius.
6. The applicant may be a single company or Joint Venture/Consortium, subject to scheme conditions.
7. The applicant may be a Greenfield project. Brownfield projects may participate subject to prescribed eligibility criteria.

• The applicant shall not have availed benefits under MNRE tenders linked to photovoltaic manufacturing.
• The applicant shall not have availed benefits under SIPS/M-SIPS of the Ministry of Electronics and Information Technology.
• The applicant shall not have imported capital goods for setting up the module manufacturing facility before the last date of bid submission.

Offline

Step 1: The applicant should participate in the transparent bidding process under the scheme.
Step 2: The applicant should submit an application to Indian Renewable Energy Development Agency (IREDA) in response to bid/tender documents. (The PDF indicates applications are received and examined by IREDA.)
Step 3: The applicant should undergo appraisal and inter-se ranking based on:

• Extent of Integration
• Manufacturing Capacity
• Minimum Module Performance Parameters.

Step 4: Selected applicants should sign Contract Agreement with IREDA.
Step 5: Selected applicants should submit Performance Bank Guarantee.
Step 6: The applicant should commission manufacturing facilities within applicable timeline:

• Within 3 years; or
• Within 2 years; or
• Within 1.5 years, as applicable.

Step 7: The applicant should submit annual claims for PLI with supporting documents.
Step 8: Claims will be verified by IREDA/MNRE and incentive may be disbursed as per scheme provisions.