India targets 30 GW polysilicon capacity by 2030, new subsidy scheme in works
The Union Ministry for New and Renewable Energy is preparing a new subsidy scheme to boost domestic polysilicon manufacturing, with a target of adding 30 gigawatts (GW) of capacity by 2030. Santosh Sarangi, Secretary of the ministry, confirmed the plan on the sidelines of an industry event today.
Polysilicon, a key raw material for solar panels, requires substantial capital investment. According to Mr. Sarangi, setting up a polysilicon plant along with metallurgical-grade silicon would cost approximately ₹850 crore per gigawatt of capacity. Acknowledging this financial burden, the government is exploring ways to support manufacturers.
“Keeping in mind the fact that such a large investment is required, we are working out ways to support manufacturers,” he stated. He emphasized that adding at least 30 GW of polysilicon capacity by 2030 is essential for the country’s energy security and manufacturing resilience.
Elaborating on the rationale for the proposed scheme, Mr. Sarangi noted that the existing Production-Linked Incentive (PLI) scheme has limitations. “Since not a very huge capacity from there [the existing scheme], we are planning another scheme which would provide some kind of subsidy for polysilicon manufacturing,” he explained.
The move aims to reduce India’s reliance on imported polysilicon, which is currently dominated by China. Boosting domestic production is expected to strengthen the solar manufacturing ecosystem and support the government’s ambitious renewable energy targets.
Separately, Mr. Sarangi highlighted a growing challenge in the solar sector: many planned solar projects lack guaranteed buyers. Approximately 42 GW of planned capacity is yet to secure offtake agreements, including 18 GW of solar-only projects and about 15 GW of capacity that was procured at high prices.
This dual focus on manufacturing support and addressing offtake concerns reflects the government’s broader strategy to build a self-reliant and sustainable solar energy sector in India.
