Due to the increasing costs for solar energy, solar panel modules, it will have an influence on the cost of the 4 gigawatts (GW) of projects that have come in over the last six to nine months, the credit rating agency ICRA said in a report on Tuesday.

“It’s a risk, it is particularly important to the government, the developer of payment, at the time in the last six to nine months, at the rate of 4-non-ferro), the rates are, in principle, the Rs 2.00 to Rs 2.25 per unit, and planned to launch in the next 12 to 15 months. In addition, the recent rise in commodity prices will also lead to an upward trend in the total capital value of the solar power projects, ” the report says.

In December, the Chinese module producers have raised prices by more than a fifth, and began to withdraw from the contract for the supply of the equipment for which contracts have already been signed, even at the risk of the receiving bank guarantees, as previously reported by the mint.

“This price increase has been driven primarily by a sharp increase in the price of polysilicon, a key material for the manufacturers of switches and modules,” according to the report.

It’s currently a domestic production capacity is of only 3 gigawatts (Gw), solar cells, and 15 GW for solar modules. The domestic rates are for the field of solar energy and solar energy, reached an all-time low of 1.99 and a 2.44 yen per unit, respectively.

“The price of imported solar photovoltaic (PV) modules has been increased by only 15% to 20% over the past 4-5 months, up to about 22-23 cents/watt, it is most likely to affect the productivity of the developers of solar power projects,” the report says.

This is set against the backdrop of the state-run Indian Renewable Energy Development Agency Ltd. (IREDA), the acceptance of applications for the construction of a solar-equipment for the production, as well as part of the government’s ambitious production-linked incentive scheme (PLI). The Rs4, 500 crore PLI scheme for solar power systems, photovoltaic modules, it will help India build its own manufacturing facilities. The plan is expected to add 10 gigawatts (Gw) of capacity-integrated photovoltaic solar power plants and the generation of a direct investment of about Rs 17,200 crore.

“In view of the fact that the control of the photovoltaic (pv) module is about 50 to 55% of the total cost of the project, an increase in the price of the module is about 4 to 5 cents/watt, if it is supported, it is likely to reduce the project’s developers ‘fault coverage is approximately 12 to 14 basis points,” Girish Kumar Kadam, a senior vice president and head of Corporate Ratings Group, Icra, said in a statement.

The Indian government has decided to enforce rights for 40%, solar panels, and 25% are solar cells, by April 1, 2022, by which the imports are more expensive, but it will also boost the local production.

In addition, the Ministry of New and Renewable Energy (MNRE) has an order, a list approved by the solar photovoltaic and solar models (PR), and the snap of the manufacturers of state-supported schemes, such as the projects of the distribution companies to acquire electric power for use by their customers.

“The rise in rates is necessary in order to compensate for such an increase in the price of the module is estimated to be around 20-22 paise/unit. This, combined with the impact of the Basic Customs duty (BCD) on imported solar modules, it is likely that the total bid price will increase by approximately 55-60 paise/unit to any future auction. However, the solar panel fee after the acceptance of this, a double exposure, it is still likely to be below Rs.3 per unit,” he added of Kadam, in a statement.

India is leading the way in the world’s largest clean energy programme, which is aimed at achieving 175 GW of renewable capacity, including 100 GW of solar power by 2022. In accordance with the Electricity, with the Administration, by 2030, the country’s demand for electricity will be 817 GW, more than one-half of which will come from clean energy to 280 GW – alone solar energy.

Source: Live Mint