India outlines 20% customs duty on solar modules, cells and inverters from August 2020

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on reddit
Reddit
Share on email
Email
Image: Flickr/Sanyam Bahga.

India is set to impose a 20% levy on imported solar modules, cells and inverters from August, replacing the current safeguard duty.

Numerous local reports state the levy was proposed by Indian power minister RK Singh yesterday during a call with industry representatives, confirming that Prime Minister Narendra Modi’s government intended to impose a Basic Custom Duty (BCD) of 20% on imports.

That BCD, which comes as part of the ‘Make in India’ initiative designed at stimulating domestic manufacturing, would replace the existing safeguard duty of 15% set to expire on 29 July 2020.

The update serves as confirmation of duties first teased within the Union budget earlier this year, which at the time set no particular timeframe for the introduction of such levies. It would also seem to remove any confusion over potential exemptions for components or equipment, as were suggested a month later.  

It also comes amidst a push from India’s Ministry of New and Renewable Energy to rekindle domestic renewable manufacturing having witnessed imports struggle with logistics issues posed by the ongoing COVID-19 pandemic. In May the government said that it had designated solar PV manufacturing, as well as advanced battery manufacture as 'Champion Sectors' of national self-reliance and would be supporting both with incentives.

In addition, RK Singh also confirmed that an approved list of PV manufacturers for use in government-backed solar projects would be published in October this year, having been pushed back from the original date of April following the onset of the pandemic.

While expected, the news will come as blow to Chinese inverter manufacturers which have come to dominate India’s rooftop solar inverter market, as research compiled by JMK Research & Analytics showed earlier this year.

Read Next

April 13, 2021
Major ‘Solar Module Super League’ (SMSL) member JinkoSolar has guided 2021 total product shipments (wafers, solar cells and modules) to be in the range of 25GW to 30GW.
April 12, 2021
Canadian Solar has started mass production of its large-wafer size solar modules, boasting power outputs of up to 665W.
April 8, 2021
The Indian government has approved production-lined incentives for the country’s solar module manufacturing sector to help the country add an extra 10GW of solar power generation capacity over the next five years.
PV Tech Premium
April 8, 2021
After a challenging year, India’s solar sector stands primed for something of a rebound. But a host of familiar issues, from the perilous state of DISCOMs to regulatory uncertainty, run the risk of stymying future growth. Vinay Rustagi, managing director at consultancy Bridge to India, talks to PV Tech about the future prospects for Indian solar.
April 8, 2021
Tata Power Solar has expanded its PV manufacturing facility in Bengaluru, India, taking the total production capacity of modules and cells to 1.1GW.
April 6, 2021
Polysilicon producer REC Silicon has surprisingly terminated it supply chain partnership with US PV manufacturing start-up Violet Power, claiming it would best serve its shareholders by focusing on doing business with “established, proven, active and relevant solar supply chain partners”.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
April 20, 2021
Upcoming Webinars
April 28, 2021
4:00 - 4:30 PM CET
Solar Media Events
May 11, 2021