Pune: Rising Raw Material Prices Increase Cost Of Solar Equipment – MASMA

Pune, 30th June 2021: Maharashtra Solar Manufacturer Association (MASMA) had organized a webinar on a sharp hike in the rates of solar water heaters, solar PV systems.

There is enormous fluctuation in metal rates, MS, GI, and Aluminum prices increased by 25-30% Copper prices increased by 40%.
Normally evacuated glass tubes which used solar water heater are imported from China, price of this increased nearly 40%.

Module prices started increasing in mid-2020 because of supply disruption caused by floods in China. Freight rates to have shot up 5-8 times due to shortage of shipping containers pushing up module price increased in last 6 months by 30%. Import duty of solar inverter also increased by 15% so the cost of invertor also increased by 10-15%.

Solar off-grid inverter manufacturing price also increased by 20-30% due to increase metal cost, semiconductor cost. Due to the shortage in semiconductor production of invertor also hampered, due to shortage also product costs increased.

It is not a possible reduction in price in the next 8-10 months. MASMA officials have requested all solar enterprises to take note of present and future Price rises and plan procurement of row material accordingly to customers.

Further MASMA president Rajesh Mutha addressed that end customers also should take care while planning solar projects should be aware of those who offer old prices may ash for the cost revisions project delay or use of poor quality material.

MASMA is also insisting MNRE ministry of new renewable energy to increase benchmark cost. Also, all the state association is joining hands with MASMA.

All manufacturing is also submitting their presentation regarding the increase in product cost due to the increase in raw material price to MNRE and MASMA.

1. Similarly for Solar Rooftop PV plants, the majority of Solar cells are imported and their prices have gone up by 4 to 5 rupees per watt. On top of it during this year’s budget Government has increased import duties on solar inverters by 15%.

2. On one side the government wants to promote solar and on the other hand prices are increasing drastically. To promote solar and Renewable energy Central or State governments should wave off GST at least for the residential sector. The way they have given relaxation in registration/stamp duties for the real-estate sector.