India’s Solar Panel Manufacturing Boom is Here. 4 Stocks for Your Watchlist

livemint.com:

solar panels in India, what would you say? If your answer is China, you would have been right… last year. In the first half of 2022, India imported 9.8 GW of solar modules from China. But in the first half of this year, that number has crashed to 2.3 GW, a 76% reduction.

In the same period, China’s exports of solar panels actually went up by 3%. This is as per a report from a solar industry think tank. In fact, India was the only country to see a fall in imports.

Every other nation on Earth, including Western nations, that are installing solar panels, are using imported Chinese equipment. So why are Indians buying fewer Chinese solar panels? Well, the answer is fundamentally tied to India’s solar manufacturing boom and ‘Make in India’. To fulfil its commitment to the Paris Climate Treaty, India is undergoing a revolution in the solar industry.

The domestic solar industry is thriving on the back of robust demand and government support. The government’s goal of establishing a resilient domestic solar ecosystem is gaining pace. Let’s dive into the reasons behind this boom… Back in April 2022, the government imposed a 40% customs duty on the import of solar modules and a 25% customs duty on the import of solar cells.

This move has made imports expensive and thus, given a boost to domestic manufacturing. Industry experts say the trend towards self-sufficiency is now irreversible. It’s only a matter of time that India drops its reliance on China in the solar sector.

The Ministry of New and Renewable Energy has a list of approved solar modules and manufacturers. This ALMM was made compulsory along with the import duty hike. This gave a huge boost to Indian Solar companies as they were on the list.