India Has Big Gains In Savings For Solar Panel Costs

India is just another member of the world solar community who will be making huge financial and renewable energy gains due to the glut of solar panel prices by China.  It's going to be a great time to buy solar and has been all over the world.  The world is very large compared to other places, like Rhode Island for example.  So, it's pretty amazing that there have been great indications historically that the price of solar is going to continue to fall.  Now, in some countries, they are really making headway with their solar panel system costs. India might be the biggest beneficiary of solar industry improvements in China that are poised to decrease prices for photovoltaic solar system panels. 

China announced last week it was suspending approvals of some new solar projects this year and cutting subsidies to developers to mitigate its pace of expansion. That’s anticipated to slow demand in the world’s biggest market, weakening prices, and force the country’s manufacturers to ship more solar system panels overseas. 

Tariffs In India

Tariffs in India’s subsequent solar auction scheduled for mid-June may fall below the 2.44 rupees per kilowatt hour record set May 17 last year, said Sanjay Sharma, comprehensive manager at Solar Energy Corp. of India, the agency accountable for implementing India’s renewable targets. 

“India will be a big beneficiary of a fall in module prices,” declared Vinay Rustagi, managing director at solar research firm Bridge to India. “If China’s demand weakens as expected, module prices should come down dramatically in the second half of the year and into the next.” 

India is attempting to boost its clean energy generation as Prime Minister Narendra Modi has pledged to double India’s renewable power potential to 175 gigawatts by 2022, a target second only to China, as the component of his plan to spearhead global efforts to combat climate change. 

Solar-Cell Manufacturing

India’s maximum annual solar-cell manufacturing capacity is about 3 gigawatts while common yearly demand is 20 gigawatts, meaning the remainder needs to be procured on the international market, according to a December announcement from India’s Ministry of New & Renewable Energy. 

The price of solar system panels imported from China is expected to decline at least 10 percent from current levels of $0.31 per watt, according to Sunil Jain, the chief executive officer at International Finance Corp.

“Cheaper prices may boost installations in countries that see grid parity, like India,” Sebastian Liu, administrator of investor relations at JinkoSolar Holding Co., the world’s largest solar system panel maker. 

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