Production Linked Incentive (PLI) Scheme for High Efficiency Solar PV Modules

What is the PLI Scheme for High Efficiency Solar PV Modules?

The Production Linked Incentive (PLI) Scheme for the National Programme on High Efficiency Solar PV Modules is a central scheme of the Ministry of New and Renewable Energy (MNRE), approved by the Union Cabinet in April 2021. According to MNRE, the scheme has a total outlay of Rs 24,000 crore and aims to build gigawatt-scale, integrated solar-module manufacturing capacity in India.

The scheme exists to reduce India's heavy reliance on imported solar cells and modules. It rewards companies that build the full manufacturing chain in India: ideally from polysilicon and wafers through to cells and finished modules, and that achieve high module efficiency and local sourcing.

Main objectives

• Establish gigawatt-scale domestic manufacturing of high-efficiency solar PV modules.
• Reward higher degrees of backward integration in the manufacturing chain.
• Cut import dependence and build a resilient solar supply chain.
• Support India's renewable-energy capacity targets.

How is the scheme structured?

The Rs 24,000 crore outlay was released in two tranches:

According to MNRE and SECI, letters of award under the scheme cover about 48,337 MW of solar PV manufacturing capacity across fully and partially integrated facilities. Under Tranche-I, IREDA issued letters of award in November and December 2021 to three manufacturers for about 8,737 MW of fully integrated module capacity. Under Tranche-II, SECI issued letters of award to 11 manufacturers in April 2023 to including firms such as Reliance, Indosol and First Solar, for cumulative capacity of around 39,600 MW. The Tranche-II awards phased in capacity milestones: roughly 7,400 MW targeted to be operational by October 2024, 16,800 MW by April 2025 and the balance 15,400 MW by April 2026.

How much does the scheme provide?

Selected manufacturers receive production-linked incentives for five years after their plants are commissioned, paid on the manufacture and sale of high-efficiency solar PV modules. The incentive per unit is higher for:

• Greater backward integration (making cells and wafers domestically, not just assembling modules).
• Higher module efficiency.
• Higher local sourcing of materials.

The exact incentive rates, minimum capacity and integration conditions are set out in the scheme guidelines on the MNRE portal, and were the basis on which manufacturers competed during bidding.

Why does India need domestic solar module manufacturing?

India has one of the world's largest and fastest-growing solar deployment programmes, but for years most of the cells and modules installed here were imported. That created two risks: a large and growing import bill, and a supply chain vulnerable to disruption and price swings abroad. The PLI scheme addresses both by rewarding companies that build capacity across the manufacturing chain in India.

The scheme deliberately favours backward integration. A firm that only assembles imported cells into modules earns less than a firm that also makes the cells, wafers and polysilicon domestically. This "more integration, more incentive" structure is designed to build a self-reliant supply chain rather than a thin final-assembly layer, and it is why the scheme is a company incentive requiring gigawatt-scale investment, not a citizen benefit.

Who is eligible for the Solar PV Modules PLI Scheme?

A company could apply if it:

• Is registered in India and bids to set up gigawatt-scale, high-efficiency solar PV module manufacturing.
• Meets the net-worth, financial-capability and integration conditions in the bid documents.
• Commits to the capacity, efficiency and local-sourcing thresholds under its chosen tranche.

You are not eligible if:

• You are an individual, rooftop-solar owner or job seeker seeking a personal grant — this is a company incentive scheme with no individual benefit.
• Your project cannot meet the gigawatt-scale capacity or integration conditions.
• You are applying now: both tranches have already been awarded through competitive bidding.

Anyone offering personal "solar PLI registration" to individuals for a fee is running a scam. The scheme has no citizen application.

How to apply for the Solar PV Modules PLI Scheme

The scheme has no citizen application; selection was through competitive bidding run by MNRE's implementing agencies:

1. Confirm the tranche and its implementing agency: IREDA for Tranche-I, SECI for Tranche-II.
2. Register as a bidder and study the request-for-selection documents and scheme guidelines on the MNRE and SECI portals.
3. Prepare the detailed project report, net-worth proof, manufacturing and integration plan, and the earnest money deposit.
4. Submit the competitive bid, with committed capacity, degree of integration and local-sourcing targets.
5. Selected manufacturers sign a programme agreement and claim production-linked incentives for five years after commissioning, against verified sales.

What is the status of the scheme?

Both tranches of the scheme have been awarded. According to MNRE and SECI, letters of award cover about 48,337 MW of manufacturing capacity, and incentives are disbursed over five years after each plant is commissioned. Fresh applications are not open.

Disbursement has been slow to start. As of 28 February 2026, MNRE had not released any incentive funds under the Rs 24,000 crore scheme, because the first payouts fall due only after commissioned plants complete their one-year operational milestone. Industry reporting notes that several awarded projects have run into eligibility timelines, and the first tranche of disbursements is expected in late 2026 or later. This lag is a normal feature of a production-linked incentive: money follows verified output, so it flows only once plants are built, commissioned and running for the qualifying period, not when the award is made.

Because commissioning schedules and disbursement figures change as plants come online, confirm the latest status directly with MNRE, IREDA or SECI before acting, and do not rely on any third party promising personal enrolment.

What documents does a company need for the Solar PV PLI?

A bidder assembles a corporate and technical dossier, not personal papers. The core documents are:

Because selection was competitive and both tranches are already awarded, these documents matter now only for understanding how bidders were assessed, the window to submit them has closed.

How does this scheme fit with other solar policies?

The Solar PV Modules PLI is a manufacturing incentive. It works alongside, but is separate from, demand-side measures such as rooftop-solar subsidies for households and deployment programmes for utilities and farmers. The PLI does not pay anyone to install solar panels; it pays selected manufacturers to make high-efficiency modules in India.

For an individual or a household wanting to install solar, this scheme is not the right door. The relevant support comes from rooftop-solar and residential programmes run separately, not from the PLI. For a company, the practical questions are whether it can meet the gigawatt-scale capacity, backward-integration and local-sourcing conditions, and whether it was among the manufacturers already selected under the two tranches, since fresh applications are not open.

Help and how to verify

• Official scheme information and guidelines: the MNRE PLI pages.
• Tranche-II selection and awards: SECI's PLI pages.
• Scheme documents and updates: MNRE's solar PV PLI document category.

There is no citizen helpline because there is no individual application. Treat any message, call or website that asks an individual to "register" or pay a fee for the solar PLI as fraudulent, and verify every claim against MNRE, IREDA or SECI before acting on it.