MNRE clarifies in respect of domestically manufactured solar PV cells

In a major decision that is likely to give a further boost to the domestic manufacturing of solar cells in India, MNRE has issued a clarification in respect of domestically manufactured solar PV cells today.

It may be noted that a number of flagship programmes of MNRE such as KUSUM, have provisions for mandatory use of domestically manufactured solar PV cells. However it was seen that some manufacturers have been importing semi-processed solar PV cells (generally called blue wafer) and making final Solar PV cells with little value addition in India as per information available from PIB.

The Ministry has clarified that if diffused silicon wafer (generally called ‘Blue Wafer’) is imported and the same is used as raw material for the manufacture of solar PV cells in India, such solar PV cells shall not qualify as domestically manufactured solar PV cells, for the purpose of MNRE’s Schemes / Programmes. A solar PV cell shall be considered to be domestically manufactured only if the same has been manufactured in India, using undiffused silicon wafer (generally called ‘Black Wafer’).

It is expected that this decision will help in establishing a strong solar manufacturing base in India.

The order issued by MNRE in this regard is as below –

“This is in reference to the schemes/ programmes being implemented by the Ministry of New & Renewable Energy, wherein it is mandatory to use domestically manufactured solar PV cells and domestically manufactured solar PV modules, and also in reference to the Manufacturing-Linked-PPA initiative by Solar Energy Corporation of India Ltd (SECI).

2. A solar PV cell shall be considered to be domestically manufactured only if the same has been manufactured in India, using undiffused silicon wafer (generally called ‘Black Wafer’), classifiable under Customs Tariff Head 3818 and all steps/processes required for manufacturing solar PV cell from the undiffused silicon wafer have been carried out in India.

3. If diffused silicon wafer (generally called ‘Blue Wafer’) is imported and the same is used as raw material for the manufacture of solar PV cells in India, such solar PV cells shall not qualify as domestically manufactured solar PV cells, for the purpose of MNRE’s Schemes / Programmes mandating use of domestically manufactured solar PV cells.

4. The solar PV cell manufacturing facility required to be set-up under SECI’s Manufacturing-Linked-PPA initiative should manufacture solar PV cells from undiffused wafers, as explained above.”