India's ambitious renewable energy targets have driven massive growth in solar power installations, making the country one of the world's largest markets for solar panels and modules. While the government is promoting domestic manufacturing through initiatives like the Production Linked Incentive scheme, a significant portion of solar equipment continues to be imported from China, Vietnam, and other manufacturing hubs. Understanding the regulatory landscape including BIS certification, ALMM requirements, and the evolving duty structure is critical for businesses in the solar energy sector.
This guide covers the complete solar equipment import process, from licensing and BIS compliance to customs clearance and the implications of India's solar manufacturing policies.
Regulatory Framework
Solar panel imports are regulated by the Ministry of New and Renewable Energy (MNRE), BIS, Customs, and DGFT. Since April 2022, Basic Customs Duty of 25% on solar cells and 40% on solar modules has been imposed to promote domestic manufacturing. BIS certification is mandatory for solar modules and cells sold in India.
The Approved List of Models and Manufacturers (ALMM) maintained by MNRE is another critical requirement. Solar modules and cells used in government-supported projects must be from manufacturers listed on the ALMM. This applies to projects under various government schemes and open access installations.
Registrations Required
An IEC from DGFT is mandatory. Apply through Patron Accounting IEC registration. BIS certification is required for all solar modules. ICEGATE and GST registration are also essential. ALMM registration is needed for government and open access projects.
The overseas manufacturer must obtain BIS certification under the Indian Standard IS 14286 for crystalline silicon solar cells and IS 61730 for module safety qualification. Without BIS certification, solar panels cannot be legally imported or sold in India.
BIS and ALMM Requirements
BIS certification involves testing of solar panels at BIS-recognized laboratories for performance, safety, and durability parameters. The tests cover electrical performance under standard test conditions, insulation resistance, hot spot endurance, mechanical load, and potential-induced degradation resistance. Factory audit by BIS is also required.
ALMM listing requires manufacturers to register with MNRE by submitting details of manufacturing capacity, BIS certification, product specifications, and quality control systems. Only ALMM-listed products can be used in government-supported solar projects, making this a de facto requirement for most commercial imports.
Step-by-Step Process
Step 1: Obtain Registrations
Complete IEC, ICEGATE, and GST registrations. Verify manufacturer has BIS certification and ALMM listing.
Step 2: Verify Duty Structure
Solar import duties have changed significantly. Confirm current BCD rates for solar cells and modules. Factor in the duty impact on project economics before placing orders.
Step 3: Arrange Shipment
Solar panels are fragile and must be shipped in specialised packaging with anti-vibration protection. Proper container loading to prevent shifting during transit is essential.
Step 4: Customs Clearance
Present BIS certificates, ALMM documentation if applicable, and standard customs documents. Pay BCD, IGST, and surcharges. Customs may inspect panels to verify BIS marks and specifications.
Documents Required
IEC, BIS certificate, ALMM listing confirmation, commercial invoice, packing list, bill of lading, certificate of origin, test reports, insurance, and Bill of Entry.
Solar Module Import Duty
As of the current policy, BCD on solar cells is 25% and on solar modules is 40%. IGST at 12% applies on solar panels. Social Welfare Surcharge at 10% of BCD. The effective landed cost has increased substantially compared to the pre-April 2022 regime when solar equipment enjoyed duty-free or low-duty imports.
The government's intent is to create a level playing field for domestic manufacturers. Importers must evaluate the total cost impact including duties when comparing imported versus domestically manufactured solar equipment for their projects.
Impact of Domestic Manufacturing Policies
India's PLI scheme offers incentives for domestic solar cell and module manufacturing. As domestic capacity increases, the reliance on imports is expected to decrease. However, current domestic capacity is still insufficient to meet the country's installation targets, making imports necessary in the near term.
Importers should monitor policy developments closely. The duty structure, ALMM requirements, and BIS standards may evolve as domestic manufacturing capacity grows and technology advances.
India's Solar Energy Landscape
India has set an ambitious target of 500 GW of renewable energy capacity by 2030, with solar energy expected to contribute the largest share. The country's solar installed capacity has grown from just 2.6 GW in 2014 to over 80 GW, making India one of the fastest growing solar markets globally. This growth has been driven by declining module prices, supportive government policies, and India's abundant solar irradiance.
The solar market in India includes utility-scale projects typically ranging from 50 MW to several GW, commercial and industrial rooftop installations, and residential rooftop systems. Each segment has different procurement practices, quality requirements, and regulatory considerations for imported panels. Understanding these market segments helps importers target their products effectively.
Domestic Manufacturing vs Import Dynamics
The Indian government's focus on domestic solar manufacturing through the Production Linked Incentive scheme and protective import duties has significantly altered the import dynamics. Domestic cell and module manufacturing capacity is expanding rapidly, with several large-scale facilities being established by both Indian and international companies. However, current domestic capacity remains insufficient to meet the country's installation targets.
Importers must navigate an evolving policy landscape where duties, ALMM requirements, and domestic content rules may change as Indian manufacturing capacity grows. Some solar developers are adopting a hybrid strategy, using domestic modules for government-subsidized projects where ALMM compliance is mandatory and imported modules for open-market projects where cost competitiveness is the primary criterion.
Project Economics and Cost Analysis
Solar project developers evaluate imported panels based on the levelized cost of electricity (LCOE), which factors in the module price, efficiency, degradation rate, warranty terms, and expected energy generation over the project lifetime. The import duty increase has raised the LCOE for projects using imported modules, making domestic modules more competitive for many applications.
Importers must help their customers evaluate the total cost of ownership rather than just the upfront module price. Higher efficiency imported modules may generate more electricity per unit area over the project lifetime, partially offsetting the higher upfront cost. Providing detailed performance modelling and bankability assessments helps customers make informed procurement decisions.
Quality Assurance for Solar Imports
Solar panel quality directly impacts project performance and returns over the 25-year expected lifetime. Key quality parameters include power output tolerance, temperature coefficient, potential-induced degradation resistance, light-induced degradation, and mechanical load resistance. Importers should insist on independent third-party testing from agencies like TUV, UL, or DNV to verify manufacturer claims.
Bankability is a critical consideration for solar project developers sourcing imported panels. Financial institutions funding solar projects evaluate the module manufacturer's track record, financial stability, warranty credibility, and third-party performance ratings. Importing from Tier-1 rated manufacturers helps secure project financing and provides confidence in long-term performance.
