“If the anti-dumping case goes through, then the price of solar cells and modules will go up. Add to it low manufacturing capacity of Indian manufacturers, it’s the project developers who will face the heat,” said Raj Prabhu, managing partner of market intelligence group Mercom Capital.
Indian solar panels are already costly by 20%-30% than those manufactured in other parts of the world. The Indian solar equipment manufacturing industry is down to utilising only 15%-30% of their capacity and the exports have died down as well. The total manufacturing capacity of India is around 1,050 mw.
“If anti-dumping is imposed on solar imports, cost of solar power in India is bound to go up which will be borne by distribution companies and commercial consumers,” said Pashupathy Gopalan, CEO, SunEdison.
Banks and financial institutions are still wary of investing in solar power due to its unpredictable nature .
“The biggest issue is uncertainty. If a cloud of anti-dumping is there, investment plans of solar project developers will get affected,” said Gopalan. As much as 80% of the solar power projects depend on imported equipments and the rest on domestic content.
“It’s also about creating scale of production. The top 10 solar photo voltaic companies globally manufacture at a scale of 1,000- 2,400 mw each, while India’s market size is currently at 1,050mw, installed in the past two years”, said Sujoy Ghosh, country head – India, First Solar, US leading solar panel manufacturer.
Manufacturers believe that restricting imports or pricing them high will remove the hurdles in their path of growth.
Source: Economic Times