Indian Cell and Module Market – Current Demand & Supplies
The price and availability of PV Glass and EVA have been becoming new issues in the PV global supply chain besides lockdown-2 conditions in some parts of the EU. Though there is no dearth of polysilicon at the moment but the situation has been really becoming squeezing as other input component costs of PV modules are rising with sluggish demand in the market. As solar energy has been taking a centre stage in the USA presidential election debates, the world is becoming really serious for adopting solar in the mainstream energy sources around the globe. Further, rumours remained rumours regarding announcement of BCD (Basic Customs Duty) on import of solar cells and modules in India. Sharp fluctuation in dollar exchange rate in India has put another spike in the balloon.
The overall imports of solar cells and modules are down by almost 75% as compared to last year. This downward dive is mainly attributed to factors like uncertainty in announcement of BCD and COVID conditions. The current demand for imported supplies of solar cells and modules in India has been struggling to improve further. The imported multi solar cells are available in the price range of USD 0.31 to 0.33 per pc FOB China basis. The mono PERC Cells are available in the price bracket of USD 0.0975 to USD 0.1075 per watt FOB China basis. The price of imported multicrystalline PV modules of 335/340 watt is hovering around USD 0.172 per watt FOB China. However, the price is expected to rise due to increased input costs in the next couple of weeks. The prices of mono PERC 420 watt and above modules are in the range of USD 0.209 to USD 0.22 per watt FOB China basis.
The local manufacturing of DCR solar cells is more or less intact in India at the moment though the manufacturing of DCR modules has been partly impacted due to delay in execution of second DCR tender of Gujarat. The manufacturing of non-DCR PV modules is also struggling a bit due to slow off take. Besides the PV module expansion programme at Chennai, Vikram has also become active for its cell line project and appointed its technical consultant for evaluating the best suited technology. The green field 1.4 GW cell line project negotiation of Waaree is still not finalized. The cell line projects of Tata and Premier are running smoothly at the moment.
The demand for DCR modules is impacted due to low tendered prices of second tender of Gujarat coupled with delayed court case hearing in the second week of Dec 2020. However, the demand from the solar pump market is surging in the festival season and aggressive marketing by regional players and Tier-1 module manufacturers. The national level tie-up of Adani Solar and Shakti Pumps has been a new game plan for leaders like Adani in marketing its modules in India.
Impact on Solar Cells and Solar Module Pricing
The prices of 330/335 watt locally manufactured non-DCR modules are in the bracket of Rs. 15.80 to Rs. 16.25 per watt by top Indian module manufacturers for orders of 100 kw. The 370/380 watt mono PERC locally manufactured non-DCR modules are available around Rs. 18.50 per watt for 100 kw order size. With sharp rise in dollar exchange rate from Rs. 73.25 to Rs. 74.50 coupled with extreme spike in costs of PV Glass and EVA have put immense pressure on the PV module manufacturers to revise its prices upwards when the market is already struggling with low off take.
See you next week for the next analysis of the prices. Stay at work safely. Best Wishes.