Production Linked Incentive Scheme for Solar PV Modules (PLI)

India is rapidly moving towards renewable energy, with solar power leading the way. The government wants to reduce dependence on imports and encourage local manufacturing of solar PV modules. That’s where the PLI scheme for solar PV modules comes in. It rewards you for setting up or expanding solar module manufacturing units, especially if you use the latest, most efficient technologies. If you’re an MSME owner aiming to enter or expand in the solar sector, this scheme can help you scale up, access incentives, and become part of India’s clean energy revolution.

What is the PLI Scheme for High Efficiency Solar PV Modules

Launched on 28th April 2021, the Production Linked Incentive (PLI) Scheme for High Efficiency Solar PV Modules is part of India’s Atmanirbhar Bharat initiative. The scheme is managed by MNRE, with IREDA as the implementing agency. With a financial outlay of ₹4,500 crore over five years, this scheme aims to build a robust domestic manufacturing ecosystem for high-efficiency solar PV modules. The goal is to support both greenfield (new) and brownfield (expansion) projects, making India a global hub for solar manufacturing.

Objectives of the PLI Scheme

• To incentivise manufacturers based on efficiency of solar modules, domestic value addition, meeting quality standards and localising sourcing
• To support both greenfield (new) and brownfield (existing) projects (with different incentive rates)
• To foster R&D in solar PV technologies & to achieve higher solar module efficiency
• To reduce import dependence of solar PV modules 

Key Features of the PLI Scheme for Solar PV Modules

• The scheme is open for five years from the date of commissioning of your manufacturing unit.
• Both greenfield (new) and brownfield (expansion) projects are eligible.
• Brownfield projects receive 50% of the PLI rate applicable to greenfield projects.
• The minimum manufacturing capacity required is 1,000 MW per stage.
• Preference is given to fully integrated manufacturing facilities, from polysilicon to modules.
• The scheme is technology-agnostic, but higher module efficiency and better temperature coefficients are incentivised.
• The financial outlay is ₹4,500 crore, distributed over the scheme period.
• PLI is disbursed annually, based on actual sales and performance.
• No fixed interest rate or maturity period, as this is not a loan but an incentive payout

Financial Assistance Offered Under the Scheme

Eligibility Criteria for the PLI Scheme

Eligibility

To apply, you need to meet these requirements:

• You must set up a manufacturing plant with at least 1,000 MW capacity per stage (cell/module).
• Your plant must meet minimum module efficiency: 19.5% (with temperature coefficient better than -0.30%/°C) or 20% (with coefficient equal to or better than -0.40%/°C).
• Both new (greenfield) and expansion (brownfield) projects are eligible, but brownfield projects get a 50% PLI rate.
• You can apply as a single company or as part of a joint venture/consortium.
• Preference is given to projects with higher integration (from polysilicon to module).
• You must not have availed benefits under MNRE’s earlier solar manufacturing-linked tenders or MEITY’s SIPS/M-SIPS schemes.

Non-Eligibility

You are not eligible if:

• Your manufacturing unit has already availed benefits under MNRE’s Solar Power Purchase Agreements linked to PV manufacturing or MEITY’s SIPS/M-SIPS scheme.
• You have imported capital goods for setting up the module manufacturing facility before the last date of bid submission.
• Your proposed plant does not meet the minimum integration or efficiency requirements.
• You fail to achieve the promised manufacturing capacity or integration at the time of selection.

Documents Required for the PLI Scheme

• Company registration documents
• Detailed project report (DPR)
• Manufacturing capacity and integration plan
• Technology details and efficiency parameters
• Financial statements and funding plan
• Consortium/JV agreement (if applicable)
• Undertaking of no prior benefits under ineligible schemes
• Any other documents as specified by IREDA/MNRE

How to Apply for the PLI Scheme

Step 1: Visit the MNRE PLI Portal or the IREDA website for scheme notifications.

Step 2: Download the scheme guidelines and application form.

Step 3: Prepare your application, including all required documents and project details.

Step 4: Submit your application to IREDA within the specified window.

Step 5: IREDA will review, rank, and shortlist applications based on integration, capacity, and efficiency.

Step 6: If selected, sign the agreement and start your project as per the approved plan.

Step 7: Submit annual claims for PLI disbursement based on actual production and sales

Benefits of the PLI Scheme for Solar PV Modules

• Boosts Your Business Growth
  You get direct financial incentives, helping you scale up and compete in the solar manufacturing sector.
• Reduces Import Dependence
  By manufacturing locally, you help India become self-reliant in solar technology and reduce costly imports.
• Encourages Latest Technology Adoption
  The scheme rewards you for using high-efficiency, cutting-edge solar technologies.
• Generates Employment
  Setting up new manufacturing units creates jobs and supports local communities.
• Supports Integrated Manufacturing
  You’re encouraged to set up end-to-end plants, improving quality and reducing costs.

Real-World Examples of the PLI Scheme

• Reliance and Indosol each received awards to set up 6,000 MW fully integrated solar PV manufacturing units under Tranche II of the scheme.
• First Solar was allocated 3,400 MW capacity for manufacturing high-efficiency solar PV modules with advanced technology under Tranche II.
• A total of 8,737 MW of fully integrated solar PV module manufacturing capacity was awarded to three companies in Tranche I, boosting domestic production.
• Eleven firms, including major players like Reliance, bagged a combined 39,600 MW of manufacturing capacity under Tranche II, greatly expanding India’s solar manufacturing ecosystem.

• Related Government Support Plans for MSMEs

Final Words

If you’re an MSME owner looking to enter or expand in the solar manufacturing sector, the PLI scheme for high-efficiency solar PV modules is your gateway to growth, innovation, and national pride. By leveraging this scheme, you can access financial support, adopt the latest technologies, and help India shine brighter in the global solar market. Don’t miss out, explore the scheme today and power up your business for the future!