look news india
From December, Indian companies manufacturing various solar equipment such as solar panels, cells and related parts may have to pay more for such production as the Chinese government has reduced the rebate given on some exports.
Photovoltaic products are also included in the export rebate on which the rebate has been reduced from 13 percent to 9 percent.
Till now, Indian solar equipment manufacturers benefited from cheap photovoltaic products imported from China. However, now that China is cutting rebates on exports by 4 per cent, these imports will become more expensive and the dues on companies will increase as a result. On November 18, the Chinese government announced such a cut in export rebates. According to experts, consumers buying solar modules from abroad will have to pay 0.02 to 0.03 yuan more per watt after the rebate is cut by 4 percent.
The Chinese government has taken this decision keeping in mind the additional production capacity established in the country. This excess capacity causes Chinese companies to produce more goods than the market requires. This increases the likelihood of companies in various sectors filing for bankruptcy. Currently, due to the huge increase in the supply of solar modules in China, the prices of these modules have decreased globally. Indian companies developing solar projects have also benefited from this. This reduced the average residual cost for these companies in large-scale solar projects by approximately 25 percent. However, this outstanding price will now be much higher.