Solar Manufacturing Body Downplays Impact of Solar Glass Duty

In an interesting move, the Solar Ancillary Manufacturers’ Association (SAMA) a ‘Not for Profit’ company designed to safeguard the interests of the solar ancillary industry, established on August 1, 2024 by Borosil Renewables and five other founding members has rushed to provide its own calculations on the impact of the anti-dumping duties on solar glass by the government of India. The move by SAMA comes even as rumblings are growing about the high level of protection being accorded to solar manufacturers in India, and the cost of the same to the end consumer of electricity.

SAMA has issued a release detailing the price to be used for calculating the extent of Anti-Dumping duty to be levied on imports of solar glass from China and Vietnam. The applicable duty shall be the difference between the landed cost of imports, including Basic Customs Duty, and the reference price. This is not a fixed quantum Anti-Dumping Duty.

The notification by the Ministry of Finance , with corrigendum on December 5th mentions that the applicable duty shall be the difference between the landed cost of imports, including Basic Customs Duty, and the reference price. This is not a fixed quantum Anti-Dumping Duty.

According to SAMA, the impact of the Anti-Dumping Duty based on the reference price for imports from China, on the cost of a solar module vis-à-vis the average landed import prices.

1. 0.48p per watt peak for a conventional module with back sheet.
2. 0.63p per watt peak for a 2mm glass/glass module.

In the case of imports from Vietnam the impact of Anti-Dumping Duty on the significantly lower reference price shall be much less.

1. 0.29p per watt peak for a conventional module with back sheet.
2. 0.41p per watt peak for a 2mm glass/glass module.

Moreover, there is no anti-dumping duty on imports from Malaysia.

SAMA’s clarification comes at a time when Industry players have claimed the impact could be as high as Rs 2 per watt peak or more, a number that always seemed suspect considering the share of solar glass in overall costs, including double sided panels. Interestingly, the share price of Borosil Renewables, considered one of the biggest beneficiaries of the move, has climbed close to 20% since the announcement.

However, that will still not take away the argument that between the PLI scheme, the ALMM list, and the tariffs on Imports, the industry is being mollycoddled to an extent that it is hurting the end consumer. One hopes that scale and experience will support the lowering of costs in India as well, before the government is forced to act.