L R AS Published on Sunday 22 October 2023 - n° 462 - Categories:India
The Indian market has recovered thanks to falling panel prices and government measures
The outlook for solar installations in India was bleak at the start of 2023, with prices and a shortage of panels preventing many projects from going ahead.
In May 2023, the market turned around.
with the price of panels falling sharply to $0.15/W between July and September. Developers seized the opportunity to order panels from abroad. The government had also amended its regulations to allow panels not mentioned in the ALMM list to be included until 31 March 2024. Panels imported before this deadline but not installed will not be eligible for installation on government-aided projects.
Indian manufacturers have also increased their production capacity. It has already passed the 20 GW mark, but factory utilisation rates are still below 50%. This means that local manufacturers, having brought their prices closer to the cost of imported panels (plus basic customs duties), will not be able to meet demand.
Imports of solar cells have also risen sharply and will boost panel production plants, especially after March 2024.
There is not enough capacity to produce domestically produced cells and panels or imports to meet the 60 GW (AC) or so of solar projects that the Central Electricity Authority says are at some stage of construction. Projects corresponding to more than two-thirds of this capacity are unlikely to get panels before 31 March 2024. This means that most developers will have to procure panels from the ALMM list. At the high number of PV projects awaiting commissioning and the level of panel imports expected for the rest of the year, S&P Global Commodity Insights forecasts that India will have installed 20 GW of solar power this year.
https://www.pv-magazine.com/2023/10/19/will-new-delhi-hear-the-call-from-solar-developers/
PV Magazine, 19 October 2023
Editor's note India is still in the emergence phase of its industry, although its needs are immense. Its production capacity is not yet sufficient. The government, aware of this, eased its regulations at a time when the price of panels was plummeting. Developers have been able to obtain panels, but installation times are short.
