‘Extraordinary move’: India’s government investing billions in battery, solar cell manufacturing

LinkedIn
Twitter
Reddit
Facebook
Email
The government said the PLI initiative “will incentivise domestic and global players to build large-scale solar PV capacity in India and help India leapfrog in capturing the global value chains for solar PV manufacturing”. Image: Tata Solar.

India’s government has agreed on a financing package that includes INR45 billion (US$603 million) of investment over five years to support the domestic development of high-efficiency PV modules.

Solar modules form one of ten “key sectors” included in a production-linked incentive (PLI) scheme that has been green-lighted by India’s cabinet in a move to help make domestic manufacturers globally competitive, create economies of scale and boost exports.

The government said the PLI initiative “will incentivise domestic and global players to build large-scale solar PV capacity in India and help India leapfrog in capturing the global value chains for solar PV manufacturing”.

Some INR181 billion (US$2.42 billion) has also been allocated over the next five years to support the manufacture of advance chemistry cell (ACC) batteries and help both domestic and international players set up operations in India.

This article requires Premium SubscriptionBasic (FREE) Subscription

Try Premium for just $1

  • Full premium access for the first month at only $1
  • Converts to an annual rate after 30 days unless cancelled
  • Cancel anytime during the trial period

Premium Benefits

  • Expert industry analysis and interviews
  • Digital access to PV Tech Power journal
  • Exclusive event discounts

Or get the full Premium subscription right away

Or continue reading this article for free

The government said that ACC battery manufacturing represents “one of the largest economic opportunities of the 21st century” for sectors such as renewable energy, electric vehicles and consumer electronics.

Dr Rahul Walawalkar, president the India Energy Storage Alliance, welcomed the programme, which he said “holds immense importance” in supporting domestic manufacturing, while helping India enter the global value chain for advanced energy storage technologies. It represents “an extraordinary move” by the government and is a result of more than four years of industry effort, he added.

Meanwhile, government think tank Niti Aayog has invited bids for setting up ACC manufacturing facilities under public-private partnerships. To be eligible for a subsidy, bidders selected through the request for proposals process would need to establish an ACC manufacturing facility with a capacity of at least 5GWh, Niti Aayog said.

To read the full version of this story, visit PV Tech.

Read Next

May 22, 2026
Masdar has selected Sungrow for the world’s first gigawatt-scale 24/7 dispatchable renewable energy project in the United Arab Emirates (UAE).
May 21, 2026
On May 20, JA Solar announced the appointment of Wang Junsheng as president of its energy storage subsidiary, with the appointment taking immediate effect.
May 20, 2026
Independent power producer (IPP) Sunraycer Renewables has closed a US$901 million project financing facility, supporting three solar-plus-storage projects in Texas, US.
May 20, 2026
California, US-headquartered thermal energy storage (TES) technology provider Antora has installed one of the world’s largest energy storage systems, in South Dakota.
May 19, 2026
Ford Energy, the wholly owned subsidiary of Ford Motor Company and developer EDF power solutions North America have announced a five-year battery energy storage system (BESS) supply agreement.