India is suggesting that clean energy companies utilize only domestically produced solar ingots and wafers starting June 2028, according to the nation’s renewable energy ministry on Wednesday, in an effort to reduce Chinese imports.

Through this initiative, the South Asian nation aims to guarantee the utilization of locally produced parts throughout the complete solar panel production process. Firms such as Waaree Energies (WAAN.NS), Tata Power (TTPW.NS), and Indosol Solar (IDOS.NS) have suggested investments worth billions of rupees to establish renewable manufacturing capabilities, as India seeks to increase its non-fossil fuel power capacity to 500 GW by 2030.

The government has mandated the use of domestically assembled solar panels in state projects, despite the possibility of importing components such as cells, wafers, ingots, and polysilicon.

India presently depends exclusively on China for importing cells, ingots, wafers, and polysilicon for solar panels.

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The nation has mandated the utilization of locally produced solar cells starting in June 2026.

Enhancing portal infrastructure and ensuring data validation, along with integrating power distribution companies, are essential for reaching the goal of setting up rooftop solar systems for one crore homes under the PM Surya Ghar: Muft Bijli Yojana.

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The initiative, initiated in February 2024, seeks to aid one crore families by achieving annual savings of Rs 75,000 crore through rooftop solar system installations by March 2027.

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In the past two years, approximately 23.29 lakh (rooftop solar) installations were completed, falling short of the target of 61 lakh, with an 80 percent fund utilization of Rs 22,402.97 crore from the revised budget of Rs 28,100 crore, as detailed in the 12th report of the Committee on 'Demands for Grants (2026-27) of the Ministry of New and Renewable Energy' presented in Parliament.