India extends safeguard duty on solar imports

Facebook
Twitter
LinkedIn
Reddit
Email
The extension of the safeguard duty comes at a time of increased tensions between the two nations. Image: Flickr/TImes Asi.

The Indian government has extended its safeguard duty on solar equipment for one more year, effective today.

India’s Ministry of Finance confirmed the move in a notification issued yesterday (29 July 2020), announcing that a duty of 14.9% would be levied on the imports of solar cells and modules from China.

This article requires Premium SubscriptionBasic (FREE) Subscription

Unlock unlimited access for 12 whole months of distinctive global analysis

Photovoltaics International is now included.

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Unlimited digital access to the PV Tech Power journal catalogue
  • Unlimited digital access to the Photovoltaics International journal catalogue
  • Access to more than 1,000 technical papers
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

The notification does however make no mention of Malaysia, indicating cells and modules originating from the Southeast Asian nation are exempt.

The 14.9% tariff is to be levied until 28 January 2021, when it will reduce to 14.5% until 29 July 2021.

It follows a recommendation from India’s Directorate General of Trade Remedies earlier this month that the existing safeguard duty, which has been in place since 2018, be extended a further year to support domestic manufacturers.

Imports could however be further implicated by a Basic Customs Duty (BCD), also mooted by India’s government to help make domestic components more competitive. That BCD was proposed to come in at 20% and rise to as much as 40% next year, however there has yet to be any official confirmation as to how it will be implemented – if at all – alongside the safeguard duty.

Last week consultancy firm Fitch warned that a double tax hit on imports from both a safeguard duty and BCD would place at risk a considerable portion of India’s utility-scale solar pipeline, potentially rendering them uneconomical.

The move comes at a time when India is attempting to both stimulate a domestic solar manufacturing base while progress towards a lofty target of having 100GW of installed solar by 2022. Chinese imports are still estimated to make up around 80% of components used in solar developments in India today, and the country’s homegrown solar manufacturing output remains comparatively small.

Earlier this month senior figures from manufacturers in the country warned that duties of 40% would not be sufficient to properly curb imports from China, instead requesting tariffs of at least 50%.

10 March 2026
Frankfurt, Germany
The conference will gather the key stakeholders from PV manufacturing, equipment/materials, policy-making and strategy, capital equipment investment and all interested downstream channels and third-party entities. The goal is simple: to map out PV manufacturing out to 2030 and beyond.

Read Next

July 25, 2025
A round-up of news from the Indian solar sector this week, including Reliance Industries' cell plant, Juniper Green Energy powering solar PV and Solex Energy launching new modules.
Premium
July 25, 2025
At the SNEC expo, Carrie Xiao took the temperature of the industry as it seeks a way out of cutthroat competition and squeezed margins.
Premium
July 25, 2025
Prices of products across various segments of China's PV industry chain—polysilicon, wafers, cells, modules—have begun to rise recently.
July 25, 2025
According to a report from the International Renewable Energy Agency (IRENA), the global levelised cost of electricity (LCOE) for solar PV reached US$0.043/kWh in 2024.
July 24, 2025
China has installed 14.36GW of solar PV in June 2025, down 85% from the previous month and also decreasing 38% from the same period in 2024.
July 23, 2025
A rise in global tariffs could impact solar PV and battery energy storage system (BESS) installations in the US and EU by up to 10% by 2035.

Subscribe to Newsletter

Upcoming Events

Media Partners, Solar Media Events
September 2, 2025
Mexico City, Mexico
Solar Media Events
September 16, 2025
Athens, Greece
Solar Media Events
September 30, 2025
Seattle, USA
Solar Media Events
October 1, 2025
London, UK
Solar Media Events
October 2, 2025
London,UK