According to the “Quartz” website of the United States on January 15, in order to protect its solar energy industry, the General Directorate of Safeguards of India (DGS) proposed to impose a 70% protection tax on imported solar cells and components during the surge of imports. In addition, the Indian government intends to impose anti-dumping duties and is currently investigating China and China. At the same time, Indian solar cell and module manufacturers also requested the government to collect (for imported goods) these two types of taxes.
The report said that once this proposal is approved, all developed countries will face strict protection taxes when they export solar products to India. About 90% of India's solar cells and components come from these countries. Reported that the protection tax may raise the cost of imports of photovoltaic products, increase the cost of solar power projects, so that the Indian Prime Minister Modi in 2022 to build a 100-kilowatt photovoltaic power plant slogans become frustrating.
Sunil Jain, CEO of Hero Future Energies, said in an interview with "Quartz". "The import tariff for solar cells and modules will increase from 2.5 rupees to 4 or 4.5 rupees. No state-owned unit or distribution company will purchase such electricity." Moreover, the retreat of policies like this has occurred many times in recent months. Bridgeto India, India's renewable energy consultancy, stated that “India had previously imposed a 7.5% import tariff on battery modules and a 5% to 18% consumption tax on various investment costs. Different recommendations on the implementation of protection tax There is also a lack of uniformity and clarity among government departments."
The policy may have the greatest impact on consumer demand. India’s Bridge believes that “India’s private solar market, including rooftop solar and open solar energy, is the most affected by this policy. The government introduced clear taxation standards and determined the final Before the cost was acceptable, most companies were not in a hurry to build solar projects,” said Bridge of India. “If the tax rate exceeds 20%, sales of photovoltaic products will be reduced by 50%.”
The application of a protection tax on imported solar cells was proposed by the Indian Solar Equipment Manufacturers Association on behalf of five Indian manufacturers. The five manufacturers include: Mondra Solar, India Solar, Jupiter Solar, Webersol Energy Systems and Helios Photovoltaic. The application emphasizes that the total output of the five manufacturers accounts for more than 50% of Indian solar cells. One month after the application was submitted, the General Directorate of Safeguards of India made the proposal.
According to the report, if the Indian government provides protection tax exemption for some imported photovoltaic products, the pressure on Indian manufacturers to face rising costs may be reduced. Gupta, Managing Director of India Solar Limited, said that the policy may bring about some slight fluctuations in terms of electricity costs or the impact on the industry as a whole, but as production capacity increases, this impact will be quickly eased. . However, analysts believe that the new policy of the Indian government is based on the fact that imports of solar cells have damaged domestic manufacturers. This excuse is "very vulnerable."
The Bridge of India stated that it is self-evident that the protection tax is to protect India’s solar energy industry. The Indian government must understand why Indian companies are struggling to compete with foreign companies, and why such policies will result in higher costs. Before the above substantive issues were resolved, the government protected domestic enterprises through trade barriers. This is a failed policy.
In fact, the Ministry of New and Renewable Energy of India stated that India’s solar energy industry “has not been fully exploited due to backward technology” and it also acknowledges that the price of PV products manufactured in India has no competitive advantage compared with imported products, especially Made in China.
Jain pointed out that if imports fall, the productivity of India's own photovoltaic industry cannot meet domestic demand. India's solar cell and module manufacturing capacity is 3 GW, but India does not manufacture solar wafers and polysilicon battery manufacturers, and these two are the key to the manufacture of solar cells, Jia Yin said that increasing production capacity to meet domestic consumption requirements requires at least one Year's time.
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