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The historic success being achieved by India in the field of Renewable Energy has now created a stir at the global level. China in particular, which has so far dominated the world solar energy market and supply chain, seems uneasy with India's rapidly growing solar capacity. India's record increase of 17 times (17x Solar Expansion) in solar energy capacity in the last decade has sparked a new debate among Chinese analysts and policymakers. A recent trending post that went viral on China's major social media platforms and think-tank forums has openly highlighted this concern, claiming that the pace at which India is increasing its solar manufacturing capacity could jeopardize the global dominance of Chinese solar companies.

What's in the viral post? Why are China's think tanks worried?

This viral post, which is being rapidly shared on Chinese social media and global economic forums, contains a detailed analysis of the revolutionary changes in India's energy sector. The post notes that India has not only increased its solar power generation capacity from a few gigawatts in 2014 to over 100 gigawatts (GW) today, but is also rapidly reducing its dependence on China for imports of solar components—such as solar panels, wafers, and cells.

Chinese experts believe that if India maintains its current solar growth rate, it will achieve its national target of 500 GW non-fossil fuel capacity by 2030 ahead of schedule. The biggest concern for China is that India is no longer just a big 'consumer' or buyer, but India's Make in India policies are making it a big global exporter of solar equipment, which is directly eating into the global market share of Chinese companies.

PLI scheme and PM Surya Ghar scheme changed the picture of India

The visionary policies and incentive schemes of the Central Government have become the main basis behind this unprecedented solar success of India:

• Production Linked Incentive (PLI Scheme): The PLI scheme of over ₹24,000 crore launched by the Government of India for solar manufacturing has inspired domestic companies (e.g. Tata Power, Adani Solar, Reliance New Energy) to set up large-scale manufacturing plants.

• PM Surya Ghar Free Electricity Scheme: This ambitious plan to install rooftop solar panels on the roofs of 1 crore homes across the country has brought a historic surge in demand for solar panels at the domestic level.

• Basic Custom Duty (BCD) on imports from China: India's imposition of basic custom duty of 40% on Chinese solar modules and 25% on sales has given tremendous strength to local manufacturers and ended the monopoly of Chinese companies in the Indian market.

What impact will this have on the global solar market?

Till now, more than 80 percent of the solar panels and silicon wafers manufactured worldwide have been manufactured in China alone. The US, the European Union (EU) and many developed countries are already working on a strategy to de-risk their supply chains from China. In such a situation, India's 17 times solar boom presents a reliable and affordable option for the world.

The International Energy Agency (IEA) and global energy analysts believe that India's Green Energy Revolution will not only make the country completely self-reliant in the energy sector, but also has the potential to directly neutralize Chinese solar dominance in the countries of South Asia, Africa and the Middle East in the coming years. This is the reason why excitement and concerns about India's 'solar boom' are continuously increasing in Beijing.