Bookmark and Share

The Chinese want to manufacture Solar Products in India to escape the looming Anti-dumping Duties

2 Comment

The Indian solar manufacturing industry is running on fumes with 10% capacity utilization. Even the bigger capacity players like Tata Power, Indosolar and Moser Baer are running at very low utilization as the market has been captured by imports from China and the US. It is estimated that almost 80% of the solar panels being used in India’s 1.3 GW solar plants are imported.

The huge price crash in solar panel prices globally has made Indian manufacturers redundant. Most companies even in China are running at losses as overcapacity has led to a complete loss in pricing power. Indian companies are very small compared to the global majors like Sunpower (SPWR), Trina Solar (TSL) and Yingli Energy (YGE). They don’t have a chance unless the Indian government offers them some protection from foreign government subsidies. US companies like First Solar (FSLR) have become predators in the Indian market as they realize that the Indian government is weak and corrupt. Unlike Japan and China, the Indian government gives no protection to the local industry. This is one of the reasons why India imports billions of dollars in value added equipment across all sectors like telecom, power and now renewable energy. The US government made India look like a fool by going to WTO over India’s ineffective local content policy.

Read all about Solar Products in India – Guide on Solar Energy Panels, Lanterns,Lights,Heating Equipment Suppliers.

Earlier the Indian companies managed to export some panels into the fast growing European market. But now with overcapacity they cannot compete in the local markets, leave alone the foreign developed markets. The Chinese companies are trying to set up local factories in order to beat the potential duties which might happen in the future. India is going to be the 3rd to 4th largest solar energy market in the world. The Chinese companies desperately want a piece of the pie. Recently one of the “small” big solar player in India- Titan EnergySystems talked about how they had received an offer for a JV from 2-3 players in China.


Renesola (SOL) and Trina Solar (TSL) already have got tie ups in place and SOL is planning to set up a solar panel factory in India soon. The capex costs of new plants have gone down drastically in the last few years due to scale and technology improvements. India’s government cannot continue its inept and corrupt ways. It needs to learn from METI and others on how to strengthen the local industries.

Also read on GWI Solar Equipment Sales falls off a cliff, only $3.6 billion sold in 2012 compared to $13 billion last year.

Cornered by cheaper imports of finished products in the solar power sector, including solar panels, domestic manufacturers see their only hope in anti-dumping laws in India and elsewhere.
While India commenced its anti-dumping probe against import of solar panels in November last year, the European Union (EU) has recently decided to impose anti-dumping tariffs against Chinese imports.”With these anti-dumping moves, the Chinese manufacturers are looking at entering collaborations with the local manufacturers as the Indian export channel do not attract anti-dumping laws for these products in the US or in the Europe,” Rao SYS Chodagam, founder and managing director of Hyderabad-based Titan Energy Systems Limited, said on the sidelines of a workshop here on Monday.In fact, a large Chinese player has already approached three Indian companies, including Titan Energy Systems for setting up a 500 Mw capacity, he said, refusing to reveal the name of the company.


Sneha Shah

I am Sneha, the Editor-in-chief for the Blog. We would be glad to receive suggestions, inputs & comments on GWI from you guys to keep it going! You can contact me for consultancy/trade inquires by writing an email to

2 Responses so far | Have Your Say!

  1. Srihari Varada

    Dear Writer:

    In my opinion, there has to be a reform at all levels down to manufacturers. I agree with what is stated. However, no protectionary measures can be effective, if the process flow in manufacturing isn’t stringent, automated and reliability assurances aren’t granted or honored. There is, typically, a lot of laxity in commitment for excellence, and it is as if every one is out there in the market to do financial engineering rather than producing viable goods.

  2. Saranya

    The usage of solar power products is increasing as well as solar products manufacturing companies in India. Here the production and transforming cost in less than comparing other countries.