Indian Cell and Module Market – Current Demand & Supplies
Cliff is falling again? The global supply chain of solar has been witnessing fall in solar product prices again. The price pressure due to explosion and flooding in China has been receding considerably. This has been mainly on assessment of stabilizing the supply situation in Sept 2020. In India, the solar developers have started lobbying for delay in implementation of Basic Customs Duty (BCD) on import of solar cells and modules on the pretext that BCD regime will give monopolistic conditions for a few companies. Now all stakeholders are in fray for their own interests putting Govt of India in a fix for decision about BCD.
Imported Supplies
The FOB China price of 18.8% multi cells is seen around USD 0.31-/ pc to USD 0.32/- per pc whereas the FOB China price for 330/340 multi modules has been around USD 0.165/- per watt. The premium products like 400 plus watt modules are priced between USD 0.20 to USD 0.21 per watt FOB China. The prices of imported cells and modules remained in negative territory. The bulk off take from China for solar modules has gone down considerably fearing implementation of BCD and COVID conditions in the country.
Local Manufacturing
The local manufacturers of solar cells and modules have got a sigh of relief with stabling/slight fall of input materials like wafers and cells though the prices of silver paste has been still remained firm on account of high demand and poor supply. Some of the local SME sector solar manufacturers like PV Power, Icon Solar, Lubi etc have been using their capacities considerably well. The news of Renew Power has already acquired land in Hisar (Haryana) for its manufacturing plan is the buzz in the market. The solar cell manufacturing plans/ expansions of Adani, Tata, Jupiter, Premier, Waaree, Vikram among others are almost on track.
Demand
The demand for solar products is still reeling under COVID conditions and BCD uncertainties. However, the demand from Govt sponsored tenders has seen booming to the large extent.
Impact on Solar Cells and Solar Module Pricing
As the prices of imported solar cells have started receding once again, the prices of non DCR solar modules have also started cooling off. The dollar exchange rate has seen between Rs. 73 to Rs. 74. Further, the prices of solar modules local non-DCR multi 330/335 watt by local manufacturers have been remained between Rs. 16.00 to Rs. 17.00 per watt whereas non DCR mono PERC 380 watt modules are available around Rs. 18.25. The prices of DCR modules of multi 330 watt are priced in higher ranges of Rs. 20 to Rs. 21.5 per watt. However, the DCR market looks quite certain and firm for saviour of the local manufacturing companies.
See you next week for the next analysis of the prices. Stay at work safely. Best Wishes.