New Delhi: Imposing a primary tariff (BCD) on imported photo voltaic photovoltaic cells and modules will assist home OEMsm, ICRA stated in a be aware.
Beforehand, the Heart had accredited a proposal to impose a BCD of 25% on imported photo voltaic PV cells and 40% on imported photo voltaic PV modules, with impact from April 1, 2022.
In accordance with the ICRA memo, though the transfer helps home OEMs, it should possible result in increased photo voltaic tariffs.
Nonetheless, clarification is anticipated on the upkeep of the safeguard responsibility (SGD) on imported cells and modules, which is presently 14.5 %, legitimate till July 2021.
“That is anticipated to extend the capital price of a solar energy challenge by 23-24%,” stated Girishkumar Kadam, group co-head, ICRA Scores.
“This in flip would end in a tariff enhance of round 45 to 50 paise per unit. Nonetheless, the availability value path will possible stay nicely beneath Rs 3 per unit and subsequently proceed to stay aggressive with patrons. ‘perspective. “
At current, the patrons of state-owned utilities, the common buy price of electrical energy and the variable buy price of electrical energy stay within the vary of Rs 4 to five per yr, respectively. unit and three to three.5 rupees per unit in lots of states.
In accordance with the be aware, for the already tendered challenge with a commissioning date anticipated after April 2022, during which the modules may be imported after this date, the BCD levy needs to be a legislation change occasion underneath the contract buy of electrical energy (PPA). .
In such circumstances, ICRA famous that well timed approval by the respective regulatory commissions and passing the tariff enhance on to patrons can be crucial from a money move perspective for the challenge promoters.
As well as, module value tendencies stay a controllable key for solar energy builders, given the current firmness in costs of imported modules, the be aware stated.
“Imposing BCDs on imported photo voltaic cells and modules is anticipated to enhance the competitiveness of home cell or module producers,” the be aware stated.
“Nonetheless, the extent of the advantages would additionally rely upon the costs of imported PV modules, particularly from China.”