Solar module making capacity set to soar 400% by FY 2025 on strong demand: Crisil

AgenciesUpdated: Thursday, January 20, 2022, 11:14 AM IST
article-image
India's solar capacity implementation is expected to rise to 14 GW per annum between fiscals 2022 and 2024, and further beyond that given aggressive renewable energy plans./ Representative image | Photo credit: IANS

India's solar module manufacturing capacity is set to rise by almost 400 per cent by fiscal 2025, compared with fiscal 2021, said ratings agency Crisil.

The trend will be supported via strong demand, favourable policies, likely improvement in energy efficiency, and price competitiveness, it said.

Besides, with the government supporting domestic manufacturers through policy measures, their competitiveness relative to the Chinese is expected to improve.

The imposition of 40 per cent custom duty on imported modules and the Production-Linked Incentive (PLI) scheme's benefits will not only eliminate the existing price gap, but may even make domestic module competitive by 2-3 cents per watt at current prices, Crisil said.

These supply-side interventions are complemented by growing demand due to continuing government thrust on renewables, and sharper focus of the private sector on the environmental, social and governance, or ESG, norms.

Consequently, India's solar capacity implementation is expected to rise to 14 GW per annum between fiscals 2022 and 2024, and further beyond that given aggressive renewable energy plans.

This plan, the agency said, will drive demand for cells and modules.

In addition to price competitiveness, developers may prefer domestic modules because they get better control of the supply chain and timely supplies compared with imports.

It will also help developers offset risks from surging freight cost seen in the recent past.

Aditya Jhaver, Director, Crisil Ratings, said: "We estimate Rs 50,000 crore of investments across the value chain for capacity building in India through fiscal 2025."

"Module and cell manufacturing capacity is estimated to increase by 30-35 GW each, while under the PLI scheme, we may also see backward-integration into polysilicon and wafer capacities."

(With inputs from IANS)

(To receive our E-paper on whatsapp daily, please click here. To receive it on Telegram, please click here. We permit sharing of the paper's PDF on WhatsApp and other social media platforms.)

RECENT STORIES

Four cases of B.A. 4 variant, three cases of B.A. 5 variant of Omicron detected in Maharashtra's...

Four cases of B.A. 4 variant, three cases of B.A. 5 variant of Omicron detected in Maharashtra's...

Mumbai: Latest Updates - B.A. 4 and 5 variants of Omicron cases detected in Pune

Mumbai: Latest Updates -  B.A. 4 and 5 variants of Omicron cases detected in Pune

Uttar Pradesh: Tipplers delight as Yogi govt ask companies to cut prices of imported liquor

Uttar Pradesh: Tipplers delight as Yogi govt ask companies to cut prices of imported liquor

Rajasthan: Three women of same family, their kids found dead in well, family alleges dowry killing

Rajasthan: Three women of same family, their kids found dead in well, family alleges dowry killing

WT20 Challenge final: Deandra Dottin's 62 powers Supernovas to 165-7 gainst Velocity

WT20 Challenge final: Deandra Dottin's 62 powers Supernovas to 165-7 
gainst Velocity