The Ministry of New and Renewable Vitality’s letter has upset home solar energy producers. File (Picture is used for illustration functions solely) |Photograph credit score: M. Periasamy
The Ministry of New and Renewable Vitality stated on Sunday (7 December 2025) that it had not issued any suggestions to droop or cease new lending to the sector.
The reason got here later Reuters The ministry has requested monetary establishments to proceed slowly with financing new photo voltaic module factories as provide exceeds demand, the ministry reported on Friday (5 December).
The Ministry of New and Renewable Vitality’s letter has rattled home solar energy producers, with many corporations expressing concern that the measure might maintain up financing for the complete sector.
The ministry introduced on Sunday (7 December) that it had requested the Treasury to advise lenders to take a “tailor-made and knowledgeable strategy” when evaluating proposals for extra standalone photo voltaic module capability, citing the chance of oversupply. It added that the advice was not supposed to defund the complete clear vitality sector.
“If utilized indiscriminately, this broad warning might have a damaging influence on photo voltaic cell manufacturing,” stated Chetan Shah, chairman and managing director of Solex Vitality.
“Limiting financing now would disrupt initiatives below building and deepen dependence on imported cells,” he stated.
Some corporations have ramped up manufacturing of modules in recent times, betting on exports to the U.S., however greater U.S. tariffs and elevated scrutiny of Indian shipments of Chinese language elements have damage exports and raised issues a couple of home glut.
In keeping with the ministry, India’s module capability is predicted to extend by a 3rd to 200 gigawatts (GW) within the subsequent few years, whereas cell output might quadruple to 100 gigawatts (GW).
The ministry introduced on Sunday, December 7, that it’s going to proceed to work to strengthen solar energy manufacturing via coverage assist and infrastructure improvement.
