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Incentives for solar energy sector

Topics Covered: Infrastructure- energy.

Incentives for solar energy sector:


The Union Cabinet has approved two production-linked incentive schemes for:

  1. White goods (air-conditioners and LED lights).
  2. High-efficiency solar photovoltaic modules.

About the PLI scheme:

  • The prime objective of the PLI scheme is to make manufacturing in India globally competitive by removing sectoral disabilities, creating economies of scale and ensuring efficiencies.
  • It is designed to create complete component ecosystem in India and make India an integral part of the global supply chains.
  • The scheme would extend an incentive of 4% to 6% on incremental sales of goods made in India for five years.


  • Additional 10,000 MW capacity of integrated solar PV manufacturing plants.
  • Direct investment of around Rs.17,200 crore in solar PV manufacturing projects.
  • Demand of Rs.17,500 crore over 5 years for ‘Balance of Materials’.
  • Direct employment of about 30,000 and Indirect employment of about 1,20,000 persons.
  • Import substitution of around Rs.17,500 crore every year.
  • Impetus to Research & Development to achieve higher efficiency in solar PV modules.

Sources: PIB.