India Relaxes Solar Panel Efficiency Rules for Rural Off-Grid Projects
India’s rural areas often lack access to reliable electricity. Off-grid solar projects have emerged as a viable solution. The Union Ministry of New and Renewable Energy (MNRE) has recently amended its efficiency standards for solar modules. This change aims to enhance rural electrification by allowing lower efficiency modules in government-approved projects.
Recent Changes to Efficiency Standards
On 6th May 2025, the MNRE announced a reduction in the minimum efficiency threshold for off-grid solar modules. The new requirement is set at 18 per cent for both crystalline silicon and cadmium telluride (CdTe) technologies. This amendment specifically targets small-scale applications, such as solar lamps and streetlights, which typically operate below 200 watts peak.
Impact on Rural Electrification
The revised standards are expected to lower costs and increase supply in remote areas. Smaller manufacturers may benefit from this change, as it allows them to participate in government initiatives. The move could lead to greater installation of solar streetlights and other small appliances, improving energy access where grid electricity is unreliable or absent.
Types of Solar Technologies Used
India predominantly uses crystalline silicon and CdTe for solar modules. Crystalline silicon panels are more efficient and durable but can be costlier. CdTe, while less efficient, performs better in low-light conditions and is cheaper. However, it contains toxic cadmium, necessitating careful disposal to prevent environmental harm.
Growth of Off-Grid Solar Capacity
India’s off-grid solar capacity has seen growth. By 2024, over 1.7 million solar home lighting systems and 8.4 million solar lamps had been deployed. As of April 2025, the cumulative solar capacity reached 107.95 GW, with off-grid systems contributing 4.98 GW. The Off-Grid Solar PV Applications Programme aims to provide solar solutions in areas lacking conventional electricity.
Concerns About Quality and Performance
While the relaxation of efficiency standards may enhance affordability, concerns about quality persist. Critics argue that less efficient panels may require more installation space and could degrade faster. This raises questions about long-term reliability and performance of solar installations.
Balancing Accessibility and Quality
The MNRE’s initiative reflects a pragmatic approach to rural electrification. It acknowledges the need for cost-effective solutions in challenging areas. However, maintaining quality standards will be crucial. Effective implementation of these revised standards could improve energy access for India’s remote populations.
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