Energy Policy, Vol.69, 501-509, 2014
Has India's Solar Mission increased the deployment of domestically produced solar modules?
The Jawaharlal Nehru National Solar Mission (JNNSM), India's flagship policy for solar energy deployment, includes an increasingly strict Domestic Content Requirement (DCR) intended to promote the domestic crystalline photovoltaic solar industry. We examine the impact of the JNNSM DCR on the utilization of domestic and domestic crystalline silicon modules. Using a plant-level database of approximately 250 plants, we show that the first, and weaker, version of the policy accomplished its intention of promoting domestic crystalline silicon modules. However, the second, and stricter, version of the policy has not been as effective: it appears to have promoted the use of foreign thin film modules instead. This analysis shows that the tightening Of the DCR was associated with leakage to foreign thin film modules. This suggests that OCR policies need to be comprehensive in scope to ensure that they achieve a goal of using only domestic content; however, policymakers should appropriately assess the welfare impacts of such restrictions. (C) 2014 Elsevier Ltd. All rights reserved.
Keywords:Jawaharlal Nehru national Solar Mission;Domestic content requirement;Solar photovoltaic (PV)