Solar panel prices likely to remain high until next year
Solar panel prices, which have been skyrocketing since last year, will continue to remain high well into 2022 due to high input and freight costs, as well as supply chain issues in China.
Polysilicon (the main input for solar panels) prices have surged 343% since July 2020 and by 148% since January 2021, according to industry estimates. This has consequently led to solar module prices rising 35%, 15% so far this year.
“Polysilicon shortage has stemmed from the increased safety checks in China (especially on smaller and more unorganised markets), explosions over the course of last year in the facilities of two Chinese polysilicon producers, and closing of manufacturing units in China due to financial stress caused by the pandemic,” said CRISIL Research.
Metal and glass prices have also gone up compounding the price increase.
Renewable capacity addition likely to be 11GW in FY22: ICRA
India’s renewable capacity addition is expected to improve to 11GW in FY 2021-22, led by a project pipeline of about 38GW, according to ratings agency ICRA.
In addition, over 20GW of projects were under the tendering phase, giving us an outlook over the medium term.
However, delays in signing of PPAs and cancellation of bids continues to be a challenge along with the fragile financial health of DISCOMs.