India to Impose 40% Customs Duty on Imported Solar Modules

In support of the domestic solar panel manufacturing industry, India has imposed a Basic Customs Duty on imported solar modules and cells in the country from 1st April 2022. As reported in various media releases, the plans to levy a basic customs duty of 40% on solar modules and 25% on solar cells is underway as mentioned by power and renewable energy minister Mr. Raj Kumar Singh.

The Backdrop of the Customs Duty
Over 80% of the solar modules used in solar projects in India are imported from foreign countries like China and Malaysia. The imposition is therefore said to be a part of the Atma Nirbhar Bharat strategy which seeks to increase the dependence of the industry on domestically manufactured solar modules and cells. Currently, there is a safeguard duty of 15% which is levied on such imports. The basic customs duty once in effect will replace the safeguard duty. The duty is being said to be implemented from 1st April 2022.

Greenergee’s Take: How will the imposition of the duty impact you as a power consumer?
The Basic Customs Duty, even though being said to be implemented with the objective to build a sustainable solar manufacturing industry in the country, might not have a very favorable short-term impact on the power consumers of the nation. The duty once in place will lead to a rise in price for both imported and home manufactured solar modules which in turn will further increase the cost of installing solar systems for consumers across various categories. Being still at an early stage of growth, the domestic module manufacturing industry might also struggle to keep up with the demands and thereby impacting the adoption of solar power plants.

A Textile Mill In Gujarat Goes Solar | Saves 59 Lakhs Every Year

“I could not believe that Solar could be so beneficial to my business. The electricity bill savings are just mouthwatering! I just wish that I would have invested in Solar much before after all this is the future! Therefore it’s about time to Go Solar, Go Green!”
– Mr.Chandraprakash

Gujarat Solar Policy 2021 Updates

Chief Minister Vijay Rupani announced Gujarat’s new solar power policy on 22/12/2020, Tuesday. The new policy is expected to be valid for the next five years. The policy stands out for the extra freedom it gives to generators, with a focus on both the state and producers benefiting from lower costs.

The big winner should be industry, with power costs, currently at Rs 8 per unit, targeted to be brought down by 50 percent by using renewable energy.

Among the key points is the move to remove the ceiling on installed capacity. The new policy also allows consumers to lease their premises or roofs to third parties for setting up plants to generate and consume power in the same premises. In the same proportion of their ownership of the plant.

Earlier, the cap on the solar project was 50 per cent of the sanctioned load or contracted demand, which has now been removed, so now any entity can install a solar project without any capacity ceiling.

The security deposit by a developer to a power distribution company (DISCOM), has been reduced from Rs 25 lakh per MW to Rs 5 lakh per MW.

The new policy promises that the state would purchase surplus energy from residential and micro, small and medium enterprises consumers after setting off against their consumption. This means that they would be allowed to sell their surplus power at a tariff of Rs 2.25 per unit. (Gross Metering). This move, while a net positive, may not go down well with smaller producers, as net metering was a real attraction for them. This is possibly offset only by the fact that the state has done a much better job of subsidising smaller installs.

For other consumers, the surplus power will be purchased at 75 percent of latest tariff discovered and contracted by GUVNL through a competitive bidding process for non-park-based solar projects in preceding six months which shall remain fixed for the project life of 25 years.

The policy estimates savings to residential consumers in the range of Rs 1.77 – Rs 3.78 per unit, industrial and commercial (captive) in the range of Rs 2.92 – Rs 4.32 per unit, and industrial and commercial (third-party sale) in the range of Rs 0.91 – Rs 2.30 per unit.

5 Reasons Why You Should Go Solar Now

When we experience natural disasters or pandemics or other significant disruptions to our lives, it’s normal to take a step back and evaluate what’s important. It is also a time when many people are looking for opportunities to become more self-sufficient and to take steps to protect the things that are most important to us. In addition to food, shelter, and protecting the health of our family, another important aspect of our lives that we may have previously taken for granted is the electricity powering our home. The current pandemic has awakened many people to the benefits that solar panels can provide to help make your home more self-sustaining.

1. Protection from future price hikes in electricity rates.

2. Easy financing options available.

3. Up to 100% monthly savings on electricity bills.

4. You are making one step closer to making the earth a better place by decreasing the carbon footprint.

5. Up to 35% of Internal Rate Return which is quite a huge number as compared to other investment options.

7 Tips For A Great Solar System

With an operational life of 25+ years, it makes sense to spend a little on time understanding your solar investment.

1. Check your roof
There is a daunting choice of solar panels and inverters available today but considering available roof space, the direction of your roof, the inclination of your roof, and shading is a good first step to narrow down the best solar system for you.

2. Gather Information
Understand the feed-in tariffs your local electricity retailers are offering for excess electricity exported back to the grid.

3. Research solar panels
Visually panel brands look similar but there are huge differences in performance, design, build quality, componentry, and the life expectancy of panels. The key consideration in selecting panels is not the upfront cost, but how long they will last as this has the biggest impact on the total solar power generated and the savings made.

4. Find the correct partner for your solar project
Obtain installation quotes from a few companies to compare equipment and costs. A good solar company will be looking for information on your roof and household power usage. They will tend to ask questions, understand your needs, and consider your roof/shading in detail before offering solar packages.

5. Choose your solar panels & inverter solution
You may not intend to stay in your house for 25+ years but purchasing a recognized brand of quality panels will likely add value to your property, be a feature when selling, give you and future owners long-term security, peace of mind, and not least deliver many tens of thousands of rupees worth of power savings over 25 years. The key consideration in selecting panels is not the upfront cost, but how long they will last and perform.

6. Buy with confidence
Purchasing a quality solar power system is one of the best practical decisions you can make both financially and for the planet. There is no rush, but the sooner you go solar the sooner your electricity bill will fall.

7. Maintenance
After purchasing the solar power system, the only maintenance it requires is cleaning at regular intervals to harness the maximum efficiency in power generation.