India’s basic customs duty on modules and cells expected to be revealed this week – report

Facebook
Twitter
LinkedIn
Reddit
Email
Image: Solar Energy Corporation of India.

Details of India’s proposed basic customs duty (BCD) on imported solar modules and cells are expected to be announced this week, according to a report in national news outlet BusinessLine.

The newspaper quoted an official who said the country’s Ministry of New and Renewable Energy has requested a 40% duty on modules and a 25% duty on solar cells for five years.

This article requires Premium SubscriptionBasic (FREE) Subscription

Try Premium for just $1

  • Full premium access for the first month at only $1
  • Converts to an annual rate after 30 days unless cancelled
  • Cancel anytime during the trial period

Premium Benefits

  • Expert industry analysis and interviews
  • Digital access to PV Tech Power journal
  • Exclusive event discounts

Or get the full Premium subscription right away

Or continue reading this article for free

According to the official, the rate and duration of the BCD will be decided by India’s Department of Revenue.

Some industry observers expected details of the BCD on modules and cells to be included in India recent budget for 2021-2022, which instead raised the duty on solar invertors from 5% to 20% with immediate effect.

It is unclear whether the proposed BCD will be introduced alongside the existing safeguard duties on solar equipment from China that India’s government extended last year and are set to remain in place until July 2021.

Hitesh Doshi, chairman of trade body All India Solar Industries Association (AISIA), said last August that the safeguard duty alone “is not enough” and called for a BCD of at least 50% on solar equipment to protect local manufacturers. According to AISIA, the value of the solar equipment that India imported from China in 2019 was US$1.3 billion.

Alongside the import taxation policy, India’s government is aiming to drive domestic solar manufacturing through a production-linked incentives programme for modules that was announced by Prime Minister Narendra Modi in November. The scheme will provide INR45 billion (US$603 million) over five years to support the domestic production of high-efficiency PV modules.

Recent research from the Institute of Energy Economics and Financial Analysis suggests that India’s clean energy industry will need investments totalling US$500 billion if the country is to reach its target of 450GW of renewables capacity by 2030.

PV Tech sister publication PV Tech Power caught up with Bridge to India managing director Vinay Rustagi to discuss India’s solar policy landscape in the forthcoming issue of PV Tech Power, to be published later this week. More details on how to subscribe to PV Tech Power can be found here.

Read Next

October 8, 2025
Saatvik Green Energy has secured new solar PV module orders worth more than INR7 billion (US$84 million), to be delivered in this financial year.
October 7, 2025
Juniper Green Energy through its subsidiary Juniper Green Sigma Eight has signed a 70MW power purchase agreement with renewable energy giant Tata Power. 
October 6, 2025
Indian infrastructure company focused on rooftop and ground-based solar power installations, PVV Infra has secured solar power orders worth INR7.9 billion (US$90 million) through two of its subsidiaries. 
October 6, 2025
Indian solar developer ACME Group has established a new subsidiary to manage its renewable equipment manufacturing business, under which it is planning to scale production of TOPCon PV modules.
October 6, 2025
Rajasthan government will develop 500MW/2,000MWh of standalone battery energy storage systems (BESS) with a four-hour single-cycle configuration and extended operational life.
October 2, 2025
The Indian solar industry has 86GW and 182GW of solar cell and module manufacturing capacity, respectively, expected to be commissioned by 2027.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
October 21, 2025
New York, USA
Solar Media Events
November 25, 2025
Warsaw, Poland
Solar Media Events
December 2, 2025
Málaga, Spain
Solar Media Events
February 3, 2026
London, UK