The World's #1 Renewable Energy Network for News, Information, and Companies.
Untitled Document

India Should Limit Solar Duties to Shield Investments, Tata Says

India should refrain from slapping retroactive duties on solar power plants already under construction to avoid disrupting investment into the industry, a unit of the nation’s biggest industrial group said.

The government needs to impose the tariffs it is planning in a way “that existing projects don’t get affected,” said Ajay Goel, chief executive officer at Tata Power Solar Systems Ltd, which makes photovoltaic panels for project developers including another unit of Tata. The commerce ministry, which recommended duties in May, hasn’t said whether they should be levied on projects signed before the decision.

India’s proposed levies are part of a broader protectionist trend sweeping across the U.S., Europe, and Australia, mainly targeting Chinese companies after a global supply glut pushed panel prices down by about half. Local developers are protesting the levies, saying the fee would stall three-quarters of existing projects in India.

Companies developing projects say the levy would threaten Prime Minister Narendra Modi’s ambition to spread solar energy to every home in India, which is part of his effort to reduce blackouts and provide power to the poor.

A way to avoid chilling investment and to still support a local manufacturing industry would be to hit only future projects with the levy and to provide a clear timeline for the measures to take force, Goel said.

The commerce ministry recommended duties of 11 cents to 81 cents a watt. Developers led by Welspun Energy Ltd. say that would double the cost of solar power.

Goel rejected those projections, saying duties would boost panel prices by about 20 percent. That increase, spread out across the two-decade lifetime of the average photovoltaic plant, would mean the cost of solar power would rise to about 8 rupees (13 cents) to 9 rupees a kilowatt-hour, he said.

Bids in a February national auction of solar licenses priced electricity from imported solar equipment at an average of 6.5 rupees a kilowatt-hour.

The Ministry of Finance has until Aug. 22 to implement the duties.

Copyright 2014 Bloomberg

Lead image: Taj mahal via Shutterstock

Untitled Document

RELATED ARTICLES

Solar Beats Gas in Colorado

Christopher Martin, Bloomberg SunEdison Inc., the biggest clean-energy developer, began construction on a Colorado solar farm that will be the larg...

Listen Up: Solar Advice from Pat Redgate at Ameco Solar

The Energy Show on Renewable Energy World Technologies, companies and business models in the solar industry come and go. But even in the relatively new solar i...

Six Observations about the US Solar Industry Mid-2015

Paula Mints In the U.S. mid-2015, deployment of solar technologies into all applications is at a pivotal point with several facto...

Indian Solar Market Ready to Takeoff

Renewable Energy World Editors Mercom Capital Group, a global clean energy communications and research firm, released its quarterly update on the In...

PRESS RELEASES

Appalachian's Energy Center assists counties with landfill gas to energy projects

The Appalachian Energy Center at Appalachian State University recently completed a proj...

Array Technologies’ DuraTrack HZ v3 Continues to (R)evolutionize at SPI

Array Technologies, Inc. (ATI) prepares to showcase its recently launched tracking syst...

Redesigned HydroWorld.com Video Gallery

Hydropower news and information, and interesting promotional announcements are now avai...

30 days to GRC Annual Meeting & GEA Geothermal Energy Expo

The Geothermal Resources Council (GRC) has announced that it is only 30 days to go to t...

FEATURED BLOGS

Appalachian's Energy Center assists counties with landfill gas to energy projects

Activity supported with Z. Smith Reynolds Foundation funding BOONE—The Appalachian Energy Center at Appalachia...

Discounted Room Rates for Geothermal Event end Friday

Discounted room rates for GRC Annual Meeting & GEA Geothermal Energy Expo end Friday Room rates for this prestigi...

3 Reasons To Follow-Up

It’s very important to begin nurturing your relationship with a customer immediately after the project you sold...

Who are the Solar Early Adopters? - the “Tipping Point” is Looming

We all know why people go solar: investment purposes, immediate savings, environmental concerns, and grid independenc...

FINANCIAL NEWS

Copyright 2015 Bloomberg

CURRENT MAGAZINE ISSUE

Volume 18, Issue 4
1507REW_C11

STAY CONNECTED

To register for our free
e-Newsletters, subscribe today:

SOCIAL ACTIVITY

Tweet the Editors! @jennrunyon

FEATURED PARTNERS



EVENTS

International Energy and Sustainability Conference 2015

The fourth International Energy and Sustainability Conference will be he...

Intersolar Europe 2016

Exhibition: June 22-24, 2016; Conference: June 21-22, 2016 Intersolar Eu...

Intersolar India 2015

Exhibition and Conference: November 18-20, 2015 Intersolar India 2015 I...

COMPANY BLOGS

Be Like The Personal Trainer

Most people think sales is all about forming strong relationships with p...

7 Tips For Capturing Attention

When you’re giving a presentation or pitching a sale, you’re...

A Mind Trick For Call Reluctance

The more you think of yourself as the connection between a product or se...

NEWSLETTERS

Renewable Energy: Subscribe Now

Solar Energy: Subscribe Now

Wind Energy: Subscribe Now

Geothermal Energy: Subscribe Now

Bioenergy: Subscribe Now  

 

FEATURED PARTNERS