Radical shift in goals of RE capacity addition has impacted the policy structures

A number of counter-productive policies have failed to revitalize the Indian solar industry which is still dependent on 90%
imports from China and Malaysia….

Reducing dependence Managing future peak Domestic manufacturing

on fossil fuel imports demands in sustainable of solar panels
manner

Reducing GHG emissions to Job creation for Indian

meet climate targets youth
Solar power market overview and policies in Indian context
Oversupply of solar panels in global markets is shaping the growth in this sector however, India with underdeveloped solar
manufacturing industry, is lagging behind in this race…
Anti-Dumping Duty Safeguard Duty Manufacturing
linked tenders
CAGR 24.2%
$422 billion

Amid concerns from GoI notified a 25% SECI invited bids for
ISMA regarding non- safeguard duty on solar projects which
restrictive supply of imported solar had condition of
$86 billion solar PV and other panels for a period of setting up greenfield
components by China, two years. The duty, solar panel
GoI issued anti- typically imposed manufacturing plant
dumping policies in during import surges, in India. The capacity
2015 2022 order to protect the is meant to protect of this plant must be
interest of local domestic a certain % of the
manufacturers. manufacturers solar bid.

 Growth in solar power market will be fueled by supply glut
from Asian countries such as China, Korea, Malaysia,
Thailand etc.
 Solar cells manufacturing in India is currently at nascent
stage with 3GW capacity which makes it uncompetitive to
pricing offered by other Asian countries
 In a knee jerk reaction to the demands of domestic
manufacturing sector, GoI implemented a number of
duties and solar projects with condition of domestic
manufacturing.
 These measures have ensured a shot-term respite but
they will have far-reaching impact on solar power sector.
Impact of recent solar policies and counter-measures to minimize negative impact
With the implementation of recent policies, the overall market sentiment has fallen because of uncertainty, marginalization of
profits and unqualified biasing. However, keeping in view of the RE target, some positive measures should be adopted….

Adverse impacts of solar policies

Apprehension Circumvention of Higher costs of Focus on manufacturing Negotiations in PPAs

among developers duties by imports necessary imports capacities may due to changing
to bid for new solar from proxy countries would increase the jeopardized RE capacity dynamics of the
power tenders like Thailand solar tariffs addition target project economics

GoI must undertake measures to bring stability and fresh investments

Financial support by Subsidy, rebates and tax Conducive policies to
GoI for R&D in solar incentives for domestic protect interest of
manufacturing manufacturers developers

For an inclusion growth, the sentiments of entire solar power industry must be respected, not just manufacturers in
particular. A lot of private investment in riding on the successful commissioning of solar power plants, therefore, the
future policy decisions should take all factors into account.