Web Exclusive | October 2017
Anti-dumping duty on solar cells to prove costly for projects
Mumbai, September 13:
The solar power industry is getting jittery over a move to levy anti-dumping duty on solar cells. The move comes at a time when the viability of the recently awarded projects at tariffs below Rs. 3.5 per unit is being questioned by analysts due to rising prices of solar modules sourced from China.
The lowest solar tariffs of Rs. 2.97 and Rs. 2.44 per unit, arrived at earlier this year in the Rewa Ultra Mega Solar Park and Bhadla Phase III solar park auctions, respectively, were based on assumptions that solar module prices will drop by another 10-15 per cent to $0.26-$0.28 a watt.
The module prices have been rising over the last three-four months mainly due to demand-supply mismatch. They rose about 6-7 cents during this period. The industry is feeling that it is only a short term pehnomenen. If it failed to reverse then the recent competitive bidders are set to see their profit margins shrink.