Solar manufacturing prospects


Buoyed by government promises of customs duty on imports and financial incentives, solar manufacturing sector is witnessing renewed interest. MNRE is reported to have received multiple proposals aggregating to around 10 GW of manufacturing capacity. Several existing manufacturers, project developers, industrial groups and foreign investors are reportedly considering setting up manufacturing facilities. Chinese manufacturers enjoy huge competitiveness edge over domestic manufacturers due to strong government support, greater backward integration, larger scale and access to in-house technology.

Figure: Module technology trends

This report takes stock of various incentives proposed by the government, competitive challenge posed by Chinese manufacturers and viability of domestic manufacturing business. We also try to assess long-term prospects of domestic manufacturing and likely impact of the manufacturing push on project development business.

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