Vijay C Roy

Tribune News Service

Chandigarh, July 7

The rise in prices of imported photovoltaic (PV) solar module by 15-20% in the past six months is likely to impact its demand as the cost of power generation will go up. According to the industry, it is likely to hit the segments which are price-sensitive such as MSMEs and individual customers.

The price rise has been driven by increase in the price of polysilicon — a key input for cell and module manufacturers. The industry feels due to its high price the residential customer may postpone the installation. However, serious customers, especially industry and commercial establishments, would have not much impact.

MSMEs to face heat

When the prices are high, the demand is selective and MSMEs are on back foot. However, a serious customer is undeterred by it as prices are cyclic. —Simarpreet Singh, CEO, Hartek solar

“When the prices are at an all-time low, demand suddenly rises. On the other hand, when the prices are high, the demand is selective and MSMEs are on back foot. However, a serious customer is undeterred by it as prices are cyclic,” said Simarpreet Singh, director and CEO of Chandigarh-based Hartek Solar.

The high price of module will impact the solar developers’ margins. According to ICRA, given the import dependency of PV modules for a majority of solar power installations in India, hardening prices of PV modhighules, if sustained, remains a near-term headwind.