India's Tariffs Could Affect The Cost Of Solar Panel Systems

The global market is massive and dynamic.  There are many wins and even more losses to be found.  In the exchange of solar panel sales, manufacturing, and installation, the price of solar can be seen changing due to significant players day to day policy and industry-based choices.  Recently, India has placed a substantial tariff on solar panel imports.  This tariff will be 25% and can have a disastrous effect on helping India achieve non-renewable energy independence.  This tariff of 25% on PV modules and cells will become law on July 30, 2018.

Government agencies have made announcements on the timelines of such tariffs. According to the report, a 25% tariff has been imposed between July 30, 2018, and July 29, 2019. It will progressively lower to 20% between July 30, 2019, and January 29, 2020, and 15% from January 30, 2020, to July 29, 2020.

India has been showing signs of a growing solar panel industry.  They have been trying to go solar on a full scale.  India’s import of cells has sprung from 1,275 MW in 2014-15, to 9,790 MW in 2017-18. Meanwhile, imports from China and Malaysia add up to 90% of this total, where India generated only 842 MW solar cells in 2017-18.

Solar Industry Reacts

Gaurav Mathur, Director, Trina Solar India, has stated that these new tariffs are “highly detrimental” to the country’s grand solar dreams. “Instead of imposing duties, the government should provide incentives to domestic and foreign companies to manufacture in India,” Mathur recently declared to PV magazine. With more than 1 GW in total shipments, China has been the largest supplier of solar panel systems for India in 2017.

Many experts around the industry weigh in on this moment, as India is one of the most populated countries in the world, the offset to free-market solar panel growth could lead to very negative externality consequences.  “It is a very regressive step. Currently, India does not have enough manufacturing capability, and 25% duty will certainly lead to a hike in the price of solar panels and consequently, solar tariff. It will, however, lead to short-term gain for India’s top domestic manufacturers,” said Adarsh Das, Co-founder & CEO, SunSource Energy.  

Global Significance 

Another significant voice in the solar panel industry has voiced up her concerns of global consequence.  Recently Corinne Lin stated, “After the recommended 25% duty, China’s module costs will still be lower than India’s. As a result, whether the safeguard duty can protect Indian manufacturers or not, is not clear. However, it will negatively impact India‘s PV project development, such as raising the construction costs of PV power plants, or reducing the efficiency of modules.”

She continued, “For 2019, China’s demand is likely to stay as low as this year, and it will have difficulties bouncing back. Therefore, the global market demand will need India’s growth, to once again exceed 100 GW.

“Should the safeguard recommendation become a reality, manufacturers planning to establish production lines in India will speed up their progress; also, the higher costs of PV projects will affect the Indian government’s planned installation volume.”

Similarly, with President Donald Trump, economic isolationist type choices in the Solar market is very disruptive to free-market competition and lower consumer pricing.  If we want to move our world into a clean energy planet, we have to speak up and make sure we can all get the lowest price on solar panel systems available.  In spite of these recent policy changes, the cost of solar is still the lowest it has ever been.  So it is still an excellent time for you to go solar.  Let us help you. 

If you want to move into the future and join the solar revolution, or if you want to find out what solar panels are right for you, go to HahaSmart.com and try our price checker tool. You can see how much a system will cost, and how much you can save over the next 20 years.

For more information relating to going solar, don't forget to visit our solar blog section for more handy guides and articles.