‘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.

3 November 2026
Málaga, Spain
Understanding technology and supplier selection for Europe’s utility-scale PV market in 2027. PV ModuleTech Europe 2026 is a two-day conference that tackles these challenges directly, with an agenda that addresses all aspects of PV module, inverter and battery supplier selection; product availability, technology offerings, supply chain traceability, quality assurance, factory auditing, system reliability, and supplier bankability.

Read Next

Premium
October 21, 2026
IndiGrid COO discusses India’s BESS growth, challenges, tariff pressures, safety standards and localisation as the market scales up.
October 21, 2026
India’s BESS pipeline exceeds 100GW, but financing, execution and tariff pressures threaten delivery of 411.4GWh of storage by FY2032.
October 21, 2026
Deye, EVE Energy and Ganfeng Lithium are among Chinese energy storage players to recently release Q3 2026 financial results, with all three reporting robust growth.
October 21, 2026
Two major schemes will drive Southeast Asian country’s deployments but require close examination, writes Flora Zhang, market analyst at Malaysia Energy Storage Association (MESA).
October 20, 2026
Oyster Renewable COO talks about India’s BESS growth, domestic manufacturing ambitions, supply chain resilience and challenges.