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China Solar Price Hikes Shock Indian Makers
10 Feb
Summary
- Chinese solar cell prices are increasing significantly.
- Volatile silver prices also contribute to unaffordability.
- Indian module makers face potential supply chain disruptions.
Indian solar module manufacturers are experiencing significant price hikes for essential solar cells sourced from China. This surge is driven by China's recent removal of export tax rebates, compelling domestic firms to increase product prices due to existing overcapacity. Compounding this issue is the volatile price of silver, a crucial conductor, which is making cells unaffordable for some Indian businesses.
Avinash Hiranandani of RenewSys India Pvt. noted that suppliers have been hesitant to provide quotations, and when they do, prices are 10-15% higher. He expressed concern that delaying procurement until after Chinese New Year holidays could lead to supply chain disruptions. Indian companies are attempting to reduce their dependence on China for upstream products like cells but remain reliant. This price increase challenges module makers and, subsequently, power generators who are bound by fixed price contracts.
While solar developers might postpone projects, manufacturers face idle plants. RenewSys is considering expensive air freight to maintain operations, with current cell inventory sufficient only for the month. Sameer Gupta of Jakson Ltd. characterized it as a price, rather than a supply, issue, noting that companies with advance planning are better positioned. Those with diverse customer bases, including rooftop solar clients whose contracts allow price adjustments, can navigate these challenges more effectively.
