LONGi Green Energy Technology Co. Ltd is willing to set up a solar equipment manufacturing facility in India. It will be the first Chinese company to enter India’s solar equipment manufacturing industry.
The company will install the facility in Andhra Pradesh with an investment of $309 million. The site will manufacture 1GW of mono-crystalline silicon cell and modules each with the money. 60% cost of a solar project is of the solar modules.
Mono-crystalline silicon is efficient and pricey in comparison to multi-crystalline silicon, that’s why former, is rampantly used in installation of solar projects. Another effect is on the overall efficiency of a solar panels which consequently result in better capacity utilization factor of any solar project.
The company is coming to India for setting up manufacturing facility because of the National Democratic Alliance’s government carrying out anti-dumping investigation on solar equipment imported from China, Taiwan, and Malaysia. Another reason is that India is working out on imposing a 70% safeguard duty on imported solar equipment from China and Malaysia, the recommendation comes from directorate general of safeguards to protect the domestic industry. Though, the recommendation yet seeks acceptance.
Another thing is that India plans to make it compulsory for firms to have local manufacturing ability in order to bid for the largest tender of 20GW.
LONGi is making the investment to generate annual revenue of RMB 42 billion and expecting a profit of RMD 120 million. The project will aid LONGi to involve in overseas market further and improve its international sales. The information comes from company statement.
Currently, India is running World’s largest and most ambitious solar energy installation program with a goal putting 175 GW of renewable energy by the end of 2022. 100GW of this would be covered by solar projects.
LONGi’s module factory will finish setting up and become live in the end of August 2019 while the factory for cell manufacturing will be live in the early January 2020 after finishing up the setup in end of 2019 itself.
The plan also comes in after US President Donald Trump has levied extra tariff of 30% on imported solar panels. It had direct impact on Chinese manufacturers.
US and India are two major markets for Chinese manufacturers, they account for 70GW of sales per year. Chinese firms dominate the Indian solar module market scenario; domestic manufacturers only have 10.6% of the share in market.
Overseas firms are gaining interest in setting up domestic factories in India. GCL-Poly Energy Holdings Ltd and Trina Solar Ltd are the other two firms that are interested in setting up domestic factory for solar equipment here in India.
Patanjali Ayurved Ltd, firm of yoga guru Baba Ramdev for consumer goods, is also stepping into solar power equipment manufacturing arena. With all these steps taking place, India will surely reach its ambitious renewable energy target by the end of 2022. But, clouds of doubt also come in light of various policies.