Solar Equipment Pricing………

Present industry structure in India is that the Solar manufacturing industry mainly comprises cell manufacturing and module assembly segments. For indirect materials like EVA films, Tedlar backsheets and other machinery and supporting equipments; Solar Project developers are mainly dependent on imports. Considering small size of solar module market in India, no investments have been made in polysilicon and warer production so far. Solar cell and glass manufacturers import wafers and raw glass and just process a one step value addition to sale finished product. Chain of value addition process in one integrated industrial complex is missing in Solar Industry development in India.

Solar Industry scenario has changed dramatically in last 2 years, wherein main responsible factors are:

-economic slow down in Europe

-revision of feed-in tariffs in Europe and USA

-overcapacity of module manufacturers in Crystalline and Thin-film segments

-throat cut competition from low-cost Chinese panel makers

-cutbacks in government subsidies in many European countries.

All these factors have resulted in oversupply and stock pile-ups of solar modules in European market, which is waiting to be sold in recently emerging market of India. Its crucial time for European solar equipment manufacturers and golden opportunity for India Solar farm developers.

Global market situation has also affected Indian solar equipment manufacturers, wherein several manufacturers are operating at sub-optimum capacity and some have shut down production. Manufacturers are failing in their debt repayment commitments, restructuring their debt and in talks with bondholders to extend the tenure of its bonds. Indian solar market taking a bigger size, still required demand for solar panels is not in place. Further the declining prices failed to simulate enough demand for manufacturers to operate at full load; it is opening new markets but the volumes are still not enough.

Solar Project developers in India took advantage of this situation of lower equipment prices and quoted very competitive tariffs in the reverse tariff bidding under various Central Govt. and State Govt. programmes. Solar tariff is as down as Rs. 7 per unit in India tariff bidding auctions. Developers are importing solar equipments and arranging overseas low interest bearing debt funding to meet low tariff bidding projects.

Indian Solar scenario, where prices of solar equipments are governed by a wide gap between demand & supply and excess capacity worldwide, its right time to install solar farms in India and take benefit of changing global solar recession into Indian solar farm potentials…………………The Journey to begin with…………...

contact:

CA Yogesh
Director
BWPM Co.

visit us at : www.Yogesh-CA.blogspot.com