Domestic solar panel prices jump 50% in 2 months to Rs 30/wattpeak

The prices of domestic solar panels have jumped over 50% in the last two months to over Rs 30 per wattpeak owing to imposition of 25% import duty on cells and higher commodity prices caused by the Ukraine crisis. Domestic panel prices are on par with imported panels from China or even higher, forcing many developers to put their projects on hold as they have turned unviable given the rates built into the existing power purchase agreements.

The government on April 1, 2022 imposed 40% import duty on solar panels, and 25% on solar cells to help domestic manufacturers expand their capacities. However, in the interim, the sector is seen suffering from the double whammy of higher commodity prices and the imposition of import duties for both developers as well as manufacturers.

China used to supply around 85% of India’s panel requirements for solar projects. The manufacturers sourced raw materials such as cells, polysilicones, ingots from them.