The government implemented a 25% safeguard duty on solar cell imports from China and Malaysia for the period between July 30, 2018 and July 29, 2019. Thereafter, the duty is to decrease to 20% for the six months following that period, and further to 15% in the subsequent six months.1

India is going to generate huge amount of Power through the renewable energy especially from the Solar Power. Indian Govt. set the target of 227 GW through the Renewable Energy from which at least 100 GW of the power comes from the Solar Power, which is the great opportunity for the Indian Solar Panel & modules Manufacturing Company- Mundra Solar, Indosolar, Jupiter Solar, Websol Energy, and Helios.

To achieve the 100 GW target by 2022, India needs around 20 GW of solar module availability per year, But the problem is that, 90% of Solar panels & Modules are imported from the China & Malaysia and for protecting the Indian Solar Manufactures, Indian Govt. is going to impose the Safeguard duty as well as Anti-Dumping duty on the import of the solar panels & Modules. But imposing safeguard duty is not the final solution for the Indian manufactures because it will increase the Solar Tariff from Rs 2.5 to Rs. 4 and it will go up to 4.5 also and Imposition of Anti-dumping duty of 12-15 cents per watt will increase the power tariff RS 0.80- Rs.1.30 further2.. At this price DISCOM Companies will not buy this power particularly when wind energy is available at less Rs. 3 per unit in recent auctions.3

But the solar power equipment manufactures does not have the capabilities to fulfil the demand if Imports are fully restricted. The target can be achieve only if the Manufacturing in India have latest technology which will give good yield, economies of scale with larger order of the solar power generation and lower cost of capital borrowed from the banks.

For the setting up this type of industry will take time at least 1 year with the favorable government policies.

We believe that India could meet the demand of Solar Panel and equipment’s by diligently designing policies and tenders. Large size tender, with mandatory domestic content requirement would ensure that bigger players set up manufacturing unit.

Imposition of duty in haste would result in slowing implementation of Solar Energy.


Research Assistant
Devender Wadhwa
Green Portfolio Private Limited


Sources of Data Given below:

  1. https://www.thehindu.com/business/Industry/solar-duty-may-do-more-harm-than-good/article24609534.ece
  2. https://energy.economictimes.indiatimes.com/energy-speak/how-would-anti-dumping-duty-impact-india-s-solar-sector/2660
  3.  https://qz.com/india/1179391/solar-safeguard-duty-the-modi-government-is-undermining-its-own-grand-plans/

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