Guidelines for Production Linked Incentive Scheme ‘National Programme on High Efficiency Solar PV Modules

Guidelines for Production Linked Incentive Scheme ‘National Programme on High Efficiency Solar PV Modules


a. To build up solar PV manufacturing capacity of high efficiency modules.-

PLI Scheme For Solar Module subsidy for solar PV manufacturing

 b. 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 which will result in better module performance will incentivised.

c. To promote setting up of integrated plants for better quality control and competitiveness.

 d. To develop an ecosystem for sourcing of local material in solar manufacturing

 e. Employment generation and technological self-sufficiency

Manufacturing Capacity:

Preference will given to manufacturers who set up higher capacity plants.

However, in order to qualify for the bid, the applicant manufacturer will have to undertake to set up

a manufacturing plant of minimum 1,000 MW capacity

(1,000 MW each for all individual stages included in the manufacturer’s proposal)

Minimum module performance:

 Manufacturers will also have to fulfill following minimum performance parameters:

Minimum module efficiency of 19.50% with temperature coefficient of Pmax better than -0.30% per degree Celsius Or Minimum module efficiency of 20% with

temperature coefficient of Pmax equal to or better than – 0.40% per degree Celsius

Bidders eligible for PLI:

The bidder manufacturer can be a single company or a Joint Venture/ Consortium of more than one company. However, in case of Joint Venture/Consortium, a partner/company will allowed to tie up their manufacturing capacity (of any stage) with another partner/company for one bid only.

The selection of the beneficiaries will done by the bucket filling method keeping in view the overall PLI limit of ₹ 4,500 crore, and the PLI requirements quoted by the bidders.

The bidder getting highest marks/inter se position will get

PLI amount for five years as quoted by him followed

by 2nd bidder and so on till the PLI amount of ₹ 4,500 crore is exhauste.

Manufacturing units which have availed any benefit under the MNRE’s tender(s) for solar Power Purchase Agreements linked to PV manufacturing or SIPS/ MSIPS programme of Ministry of Electronics & Information Technology (MEITY) will not be eligible for benefits under this programme.

Manufacturing units which have imported capital goods for setting up the module manufacturing facility before the last date of bid submission will not be eligible for participation under the PLI scheme.

Greenfield & Brownfield projects:

Greenfield new solar PV module manufacturing units will be eligible for PLI. Brownfield projects will also allowed to participate subject to the fulfilment of prescribed eligibility criteria for greenfield projects. PLI rate for such Brownfield projects will be 50% of the rate for Greenfield projects.

Calculation of Production Linked Incentive (PLI):

PLI will calculate as per following formula: PLI (₹) to manufacturers = Sales Volume (Wp) × Base PLI Rate (₹/Wp as per position in Performance Matrix mentioned in para 3.7) × Tapering Factor as explained in para 3.7.1

(1.4, 1.2, 1, 0.8, 0.6 for 1st, 2nd, 3rd, 4th & 5th year respectively) × Local Value Addition expressed in fraction of one.

At the time of bidding, the bidders will also have to submit the quantum of total PLI required for the five year period post commissioning of the manufacturing unit. They will calculate PLI requirement for each individual year

Maximum Sales (in MW) covered:

Though a manufacturer can bid for any capacity (MW), the maximum capacity that can awarded, to one bidder under the PLI scheme, is 50% of the bid capacity (capacity which he has promised to set up in his bid)

or 2000 MW, whichever is less, to accommodate at least three manufacturers under the overall envelope of ₹ 4,500 crore.

PLI will given on actual production and sales of high efficiency module by the selecte units. In case, the annual sales (in MW) of a unit is more than the capacity (in MW) awarded to it,

PLI will limited to the sales (MW) equal to the capacity (MW) awarded under the PLI scheme.

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