High cost of domestic solar panels undermines subsidy gains for farmers
Farmers installing solar plants to irrigate their land feel cheated as the increasing prices of domestically made panels nullify the subsidy provided by the central and state govts. Prices of solar panels made in the country currently command ₹28 a watt compared to about ₹14 for the assembled panels, which are made of imported solar cells. With the rising cost, the impact of the 60 per cent subsidy provided by the Union and the state govt (30 per cent each) reduces the benefits by up to 50 per cent.
As a result, farmers said that a 5-kW plant, which required about ₹2.7 lakh investment, will now need ₹4 lakh. These projects are mandated to use Domestic Content Requirement (DCR) panels to be eligible for the subsidies. Disappointed with the higher panel rates, a farmer in a social media post even accused the govt of corruption as the benefits promised under the subsidy scheme are not available to him.
The shortage of
DCR panels
has been jacking up prices in India for a long time, forcing vendors to delay project implementation. They accuse the Ministry of New and Renewable Energy (
MNRE
) of rolling out schemes with mandatory use of DCR panels without having an adequate supply.
"It is benefitting a few manufacturers who are into the production of DCR modules. If the country does not have enough capacity, then the stipulation should be removed for the smooth implementation of the projects," said a vendor preferring anonymity. In DCR modules, solar cells need to be manufactured in India. But the country currently does not have enough cell production capacity.
The majority of panel manufacturing volume is made of imported solar cells. The govt has made the DCR mandatory for certain projects, including Kusum and
PM Surya Ghar Yojana
. Delay in availability risks pushing deadlines further for achieving targets set by MNRE.
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