Connect with us

Hi, what are you looking for?

Make in India logo with a backdrop of solar panels (Source)

Clean Power

India Advised Against Levying Import Duty On Solar Cells & Modules

The Indian government has been advised by multiple entities not to levy import duties on solar cells and modules.

The Indian government has been advised by multiple entities not to levy import duties on solar cells and modules.

While the Chinese government was the first to caution India against levying anti-dumping or safeguard duties on imported solar cells and modules, the new advice is from more friendly quarters.

The European Investment Bank President Werner Hoyer recently stated that India should avoid implementing a proposed safeguard duty as it could be detrimental to India’s own renewable energy market. 

The EIB President was in India recently to attend the first summit of the International Solar Alliance in New Delhi. EIB offered debt funding worth €500 million for Indian solar power projects during Hoyer’s visit.

India is currently investigating levying anti-dumping and safeguard duties on imported solar cells and modules. The Directorate General of Safeguards had recommended levying a 70% safeguard duty on solar cells imported from China and Malaysia for a period of 200 days while it completes an investigation into a complaint filed by the Indian Solar Manufacturers Association. 

The ISMA is reportedly preparing to file a fresh application into the matter pushing the authorities to extend the period of investigation, which could possibly lead to a higher rate of duty, and possibly for a longer period of time.

Earlier last year, the Indian government also initiated an investigation into imported solar modules. Details on the status of this investigation remain elusive. Imported modules constitute around 90% of the solar modules installed in India.

Apart from the EIB, a panel of the Indian Parliament also advised the government against any import duties on solar cells. The Parliamentary Standing Committee on Energy not only voiced concerns over the high safeguard duty on imported solar cells, but also questioned the imposition of customs duty on imported solar modules which the developers oppose but are being forced to pay. The panel members also asked the Ministry of New and Renewable Energy to resolve the confusion over Goods and Services Tax (GST).

There is no doubt that the Indian solar market would suffer considerably if high duties are imposed on imports. India has seen a massive collapse in solar power tariffs over the last few years, and the drop has been in conjugation with the fall in prices and increased use of imported modules and cells. The parliamentary panel is right to point out that high duties could severely impact investments in India’s solar market.

Appreciate CleanTechnica’s originality and cleantech news coverage? Consider becoming a CleanTechnica Member, Supporter, Technician, or Ambassador — or a patron on Patreon.

Don't want to miss a cleantech story? Sign up for daily news updates from CleanTechnica on email. Or follow us on Google News!

Have a tip for CleanTechnica, want to advertise, or want to suggest a guest for our CleanTech Talk podcast? Contact us here.
Written By

An avid follower of latest developments in the Indian renewable energy sector.


#1 most loved electric vehicle, solar energy, and battery news & analysis site in the world.


Support our work today!

Power CleanTechnica: $3/Month

Tesla News Solar News EV News Data Reports




Tesla News

EV Reviews

Home Efficiency

You May Also Like

Clean Transport

Moove, the world’s first mobility fintech, launches in India as a part of its global expansion. According to its website, Moove is a Nigerian-born...


Log kya kahenge? (What will people say) This is the mindset that Jothi Viknesh, a 32-year-old from Tamil Nadu, sought to defeat when he...

Clean Transport

BILITI Electric recently announced plans to set up the world’s largest electric 3-wheeler manufacturing facility in India’s Telangana state. The plant will have a...

Clean Power

Welcome to another issue of our India x Cleantech series! On a monthly basis, we are pulling news from across clean technology sectors in...

Copyright © 2021 CleanTechnica. The content produced by this site is for entertainment purposes only. Opinions and comments published on this site may not be sanctioned by and do not necessarily represent the views of CleanTechnica, its owners, sponsors, affiliates, or subsidiaries.