17-Feb-2022 | Market Research Store

Solar farm tariffs may increase in the coming years, following the govt's decision to remove all major manufacturers from the approved list of model and module manufacturers (ALMM) for solar installations supply.

A mandatory evaluation of a firm's products and manufacturing locations is required in order to get approval. The key dealers of units to Indian renewable energy companies, Longi, Jinko, and Trina Solar, have yet to hear from regulators, thus removing them from the list of approved.

According to FE, Chinese manufacturers owing to travel limitations among India and China, neither of their sites or models were examined by the National Institute of Solar Energy, or NISE, the nodal agency authorized by the Indian government, despite fulfilling all essential paperwork.

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The producers claim that their request to the Ministry of New and Renewable Energy (MNRE) to use global third-party audit firms in China to inspect the sites received no reaction. Due to time constraints and high travel and lodging costs, it would have aided the Indian government in saving time and money.

Travel limitations with China have been identified as an impediment by the examiner, the National Institute of Solar Energy (NISE). Despite repeated requests for a global third-party examination of Chinese manufacturers' facilities and products, the agency remained unresponsive.

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To combat the Covid epidemic, China has implemented a strict visitor admissions policy. However, Chinese enterprises that sought to invite Indian inspectors for inspections were innocent victims.

Solar tariffs are projected to range between Rs 2 and Rs 2.8 per kilowatt-hour until cheaper Chinese modules arrive, but prices are anticipated to soar to Rs 3.5 or perhaps Rs 4 as local manufacturers are the only ones left in the sector. In the 2018 budget, the government also planned to impose a basic Customs charge of 40 percent on solar panel import.

India aims to reach 175 gigawatts of renewable energy by Dec 2022, and 450 gigawatts by 2030. The government enforced mandatory registration of solar panel makers to be qualified to join in government solar tenders in April 2020, in order to establish a quality bar for solar panel and cell procuring.