MNRE urges lenders to fund solar cells, wafers and polysilicon units

MNRE has urged lenders to expand financing beyond module units to include upstream solar manufacturing while clarifying that no advisory has been issued to pause lending to renewable energy projects

The Ministry of New and Renewable Energy (MNRE) has requested lending agencies to broaden their financing portfolio in the solar PV manufacturing ecosystem by supporting units producing solar cells, wafers and polysilicon, rather than limiting funding largely to solar module manufacturing.

 

The ministry emphasised that it has not issued any advisory directing financial institutions to stop lending to renewable energy power projects or equipment manufacturers.

 

What information has MNRE shared with lenders? 

MNRE said it has circulated to the Department of Financial Services and major non-banking financial companies — including PFC, REC and IREDA — the current status of domestic manufacturing capacities across the entire solar PV value chain. This includes modules, cells, ingots–wafers, polysilicon and ancillaries such as solar glass and aluminium frames.

 

The intention is to help lenders adopt a calibrated and well-informed approach while evaluating financing proposals and to encourage expanding into upstream segments of the value chain.

 

Why the push for upstream manufacturing? 

The ministry said the aim is to ensure India strengthens its self-reliance in solar manufacturing and becomes a major global player. Diversifying financing into upstream units — cells, wafers, polysilicon — and allied ancillaries is seen as critical for creating a competitive, integrated domestic ecosystem.

 

Was there concern about a lending pause? 

The statement responded to recent reports claiming MNRE had advised lenders to pause fresh financing to renewable energy projects amid concerns of overcapacity. MNRE refuted these claims, reaffirming the government’s commitment to expanding renewable energy and domestic manufacturing.

 

How fast is India’s solar manufacturing capacity growing? 

MNRE noted that government interventions — including the Production Linked Incentive (PLI) scheme for high-efficiency solar PV modules and policies ensuring a level playing field — have expanded India's solar module capacity from 2.3 GW in 2014 to 122 GW currently enlisted in the Approved List of Models and Manufacturers (ALMM).