Home   /   General   /   Increasing price of solar modules in China: Will it stunt solar growth in India?

The renewable industry in India is recognized for the production of clean and green energy but the increasing prices in the neighboring country China has bothered the Indian Solar market. The solar panel used by the Indian solar industry is not produced in the domestic market but imported from China. According to reports, with the government stressing on the expansion of solar power industry in India, they have to rely on imported solar modules. China is the exporter of these modules that they are selling at the bargain or even higher prices.

Key Points Involved in Rising Solar Modules Prices

The present prices of the solar modules are 37 cents per watt but the Chinese suppliers are demanding an additional 6 cents per watt. This has affected India’s dream of making the Solar Power sector a high-tech industry. Most of the suppliers are backing off their contracts by demanding more money from the Indian industries. This would drastically take up the cost to nearly 60% that will further impact the rate of return on green investments done by the industrialists. Let us have a look at some of the key points involved:

  • Cancellation of Projects: The government has given precise deadlines to the Indian companies for completing the Solar Energy projects on time. If they are unable to do so, they can face the cancellation, and this will directly affect their investments too. Moreover, the companies are in a fix because the Chinese dealers are asking for additional charges on the present fixed prices.
  • Drastic fall in Green Energy Market: With the increasing prices of the solar modules, most of the Indian companies in the states are falling out of the Solar Power projects. The Chinese government has made the feed-in tariff fee obligatory in their market. Even the US market is also stocking up their products that have directly hit the Indian market. The increased tariffs on these modules have impacted the solar market that was looking forward to many investors.
  • Chinese Monopoly: The country is the largest manufacturer and supplier of the solar modules that make its monopoly in the solar market. Moreover, most of the Chinese dealers are selling the solar panels at cheaper rates by dumping their products in the India market. On the other hand, few other Chinese dealers are selling the modules at higher rates that have become impossible for the investors to afford. This has further affected the commitment level of the Indian companies who have invested in solar power projects.

The reports from the government sector have thrown light on the Chinese imports, as the custom duty on the solar modules is nearly zero. Therefore, the investors in the Indian market are able to afford these solar panels. However, with the Chinese monopolistic practices coming in this vague hour has made the investors think of their projects. The increased prices by the Chinese dealers have landed many Indian investors in losses too.

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