The cost of solar modules supplied by domestic Original Equipment Manufacturers (OEMs) is expected to come down by 10-11 per cent post April this year, assuming the applicable Basic Custom Duty (BCD) on imported cells and modules. This is according to Vikram V, Vice President at research and rating agency ICRA.

This is based on the imported price of 27 cents per watt for Mono PERC solar modules and cell price at 15 cents per watt. “OEM based on imported cells remain exposed to volatility in cell and module level price.

The PV module price environment has remained elevated over the last 10-12 months, with demand and supply imbalances in polysilicon as well as supply chain disruption in China, according to ICRA.

Policy focus by the government in the renewable energy sector remains strong as evident from the target of 500 GW of non-fossil fuel-based capacity by 2030 as well as policy direction in the energy transition with net zero emission target by 2070.

According to experts, the government has policy focus to encourage the domestic manufacturing for photovoltaic modules through various policy measures announced in last 2-3-year period.

This also includes notification of approved list of module manufacturers (ALMM) wef April 2021, imposition of BCD on imported cell and modules wef April 2022. Also, the ALMM list has only domestic solar OEMs and there remains an uncertainty for inclusion of foreign solar OEMs as of now.