In 2022, the export of photovoltaic products will increase by 321%
In 2022, India's solar energy exports will increase by 321% year-on-year, while imports will decrease by 25%.
In 2022, India will export solar cells and modules worth US$561 million, a year-on-year increase of 321% compared to US$134 million last year. The United States remains India's largest solar export market. Among them, in the second half of 2022, India's installed capacity of photovoltaic modules exported to the United States will increase significantly, mainly due to the sanctions imposed by the United States on imports of photovoltaic modules from China. Data show that only during the period from October to December, the export volume accounted for 66% of the annual export.
According to statistics from the Ministry of Commerce, the total value of imported solar cells and modules in India will be US$2.6 billion in 2022, a year-on-year decrease of 25% compared to US$3.5 billion last year. But it is worth mentioning that in 2021, as India's photovoltaic industry has recovered from the adverse impact of the new crown epidemic, and delayed projects have gradually resumed, it will stimulate a relatively high growth in imports in 2021.
Two major factors affecting imports
In April 2022, India's basic tariff (BCD) on imported photovoltaic modules and photovoltaic cells came into effect. After the implementation of the tariff, imports fell for three consecutive quarters. In the previous two quarters, Indian solar developers had stockpiled about 10GW of solar modules to save costs.
In addition, according to the approved Model and Manufacturer Approval List (ALMM) policy, government-funded projects are prohibited from using imported components and other products. The ALMM list is a non-tariff barrier to prevent the import of solar equipment from Chinese companies. It is a two-way relationship between BCD and ALMM. Under the restrictions, the import of solar modules once stagnated.
It is reported that R.K.Singh, Minister of Electricity of India, recently stated that the Indian government has decided to extend the period of the Approved Model and Manufacturer List (ALMM) for two years to break the bottleneck of insufficient domestic manufacturing capacity. Once ALMM is lifted, imports will resume and will be reflected in the 2023 figures.
It is worth noting that India has set a target of 280GW of solar installed capacity by 2030, but as of September 2022, the installed capacity is about 60GW.
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