MNRE Denies Advisory for Clean Energy Financing Freeze

The Ministry of New and Renewable Energy (MNRE) has categorically denied asking lenders to slow down or stop funding renewable energy projects, countering media reports about a supposed pause in financing due to oversupply risks. The reports had surfaced following an office memorandum dated November 28 from MNRE that called for Prudence in Lending for Solar PV Modules. The memorandum had flagged representations made by the All India Solar Industries Association (AISIA), an association of solar manufacturers that claimed a looming overcapacity issue for the sector, especially the module sector. The MNRE, in its memorandum, acknowledged the AISIA representation with key points, and urged relevant stakeholders in the Ministry of Finance and others to exercise due diligence accordingly when evaluating solar module financing. Not a proposal to freeze lending by any stretch.    

The AISIA has also made a representation to the Indian Banking Association (IBA) with the same issues. The AISIA focus also seems to have been limited to solar modules, and no cells, wafers or the rest of the constituents of the solar cycle, including projects etc.  The AISIA site lists 18 members in the body, with Waaree Energies, Vikram Solar, Emmvee and Goldi Solar among the notable majors, even as it has notable misses like Adani Solar, Solex Energy, Premier Energies etc. 

No pause on green energy financing

MNRE stated that it has not advised any bank or financial institution to suspend or restrict lending to renewable energy power projects or solar equipment manufacturing facilities. 

It stressed that continued policy support and financing will be essential to maintain the country’s growth momentum and to ensure that India emerges as a major, resilient player across the solar PV manufacturing value chain.

Focus on calibrated, informed lending

According to the Ministry, it has shared detailed data with the Department of Financial Services and key non-banking financial institutions, such as PFC, REC, and IREDA, on existing domestic solar PV manufacturing capacities. 

This includes information on modules, upstream stages like cells, ingots-wafers and polysilicon, and ancillary components such as solar glass and aluminium frames. 

The objective is to enable lenders to adopt a calibrated and well-informed approach while appraising proposals, and to encourage them to diversify financing beyond just module manufacturing to more upstream and ancillary segments of the solar value chain.

Strengthening India’s solar manufacturing ecosystem

MNRE underscored that its policy thrust remains firmly on building India’s self-reliance in solar PV manufacturing and strengthening the country’s role in the global solar value chain. 

This is being pursued through a comprehensive set of measures, including the Production Linked Incentive (PLI) Scheme for high-efficiency solar PV modules and steps to ensure a level playing field for Indian manufacturers. Notably, India’s domestic solar module capacity has expanded from about 2.3 GW in 2014 to roughly 122 GW currently listed in the Ministry’s Approved List of Models and Manufacturers (ALMM).

The Ministry reiterated its commitment to inclusive, competitive and sustainable growth of the solar ecosystem as part of India’s broader goal of achieving 500 GW of non-fossil fuel capacity by 2030. 

As of 31 October 2025, installed capacity from non-fossil sources has reached around 259 GW, with 31.2 GW added in the current financial year up to October 2025.