Solar photovoltaic market dynamics in India

India's solar mission spearheaded by Jawaharlal Nehru National Solar Mission (JNNSM) and several state-level schemes provide strong support to solar deployment and development of solar power capacity. Their primary focus has been to advance the country's capacity to domestically manufacture solar panels. In this endeavor, government of India has mandated Indian developers of solar photovoltaic (PV) projects, using crystalline silicon technology, to procure indigenous solar modules to capitalize from schemes and their offer, including subsidies and guaranteed long-term competitive rates.

Because of limited indigenous capacity to manufacture such cells, Government of India, at the outset, exempted thin film solar cells from the domestic content rules. This fashioned an aperture for foreign countries to export thin-film cells to India. Besides globally thin film installations are a minuscule fraction of total solar deployment, while in India they are predominant. The market space, by design, therefore, enables proliferation by foreign thin-film panels. At the same time global overcapacity, recession, and declining prices have been accused of encouraging widespread dumping in the country. Besides, if there are no checks on rising imports, there is always the risk of dependence on them in the long run, making the country vulnerable on energy security front.

In rejoinder the Solar Manufacturers Association of India is on the lookout for anti-dumping duties on imports and is lobbying for domestic sourcing of thin film materials. As Government of India launches the second phase of the solar program, expansion of the use of domestic content rules to thin-film technologies is under consideration. USA, in the meanwhile, has appealed with the World Trade Organization (WTO) to arbitrate in support of the American manufacturers.

Domestic content rules have been traditionally used as a policy tool to nurture and develop indigenous industry. While doing so, a balance has always been attempted between consenting to reasonable degree of global competition and supporting local players till they become internationally competitive.

At crossroads the solar PV market in India faces several points of dilemma. This research study investigates such dilemma in order to document issues, challenges and prospects created by Solar Photovoltaic Market Dynamics in India.