Finance Minister Nirmala Sitharaman presented the union budget 2021, it largely focused towards the infra & Make in India initiative. For the solar industry it will be largely impactful for every kind of systems.
“The Finance Minister said that a phased manufacturing plan for solar cells and solar panels will be notified to build up domestic capacity. She announced raising duty on solar inverters from 5 per cent to 20 percent and on solar lanterns from 5 per cent to 15 per cent.”
India largely depends upon the import of electronic equipment required in solar power systems. Increasing tax slabs of such components will impact on the solar industry, price of solar power systems. Government taking initiatives to promote rooftop solar power but this budget will affect this target adversely. To keep the pace of industry Indian manufacturers are needed to either scale-up their work or new players have to be introduced.
Putting up money in the hands of solar power regulatory bodies will promote the pace of issuance of projects but the costing of projects will get revised. We may not be able to attain any other lowest solar power tariff like we’ve seen previously (i.e. Rs.1.99/kW), until or unless Indian solar players use their trump card.
This budget is highly focused towards the Make in India solar components, sooner the industry will get notified about the phased manufacturing of solar cells.
High efficiency solar module manufacturers will get benefits of the PLI scheme. Government allotted Rs.4,500Cr for the incentive based scheme, solar companies will be getting shortlisted for the scheme related benefits. This will increase employment in the industry & private sector and will contribute to take the solar industry to another level. Companies like Adani Green, Waaree, Renewsys, etc will have to introduce high efficiency solar cells. Currently a large segment of high efficiency solar cells are imported.