Good question!
As far as my knowledge goes, It is a catch 22 situation for solar panels.
China is the world’s lowest cost producer of solar module.
India is yet to achieve economies of scale to reach that cost advantage and hence it is cheaper for India to import Chinese solar panels.
So Indian solar manufacturers were making losses and they complained to the Govt and the Govt imposed 40% BCD (basic customs duty) on solar panels and 25% on solar cells from April 2022.
By this , imports were curbed. But then our manufacturers were not able to meet the growing demand…So again the govt encouraged imports by reducing customs duty to 20% of solar panels…Now again after one year of 20% duty , solar manufacturers have persuaded the govt to curb imports as they are making losses.
. So the govt again is increasing customs duty to 40%.to curb imports.
So what next we need to watch
Coming to the valuation of solar panel vs EPC , both business get affected by solar panel.
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