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Solar modules costs in India fell by 3-6% in the last year, inverter costs by 8%

The costs for key solar equipment have fallen moderately in India over the last year. Chinese tier-1 crystalline modules came down by 3%, thin film modules by 6% and inverters by 8%. Cost reductions were thus much more moderate this year than in the year before. Nevertheless, a continuing fall in solar costs is essential for unlocking the grid parity market. This progress will now likely be undone by anti-dumping duties (ADD). For more details, please download our new India Solar Compass (July 2014 edition) here.

  • Module prices have fallen significantly in the second quarter of 2014
  • The appreciation of Indian rupee is the dominant contributor
  • Inverter prices have stabilized in 2014 after a drop in the second half of 2013

After the global consolidation of module manufacturers in 2013, the prices of tier-1 Chinese crystalline modules in India have stabilized. The steady depreciation of the Indian rupee had raised module prices towards the end of 2013. The recent appreciation of Indian Rupee has in turn helped in reducing module costs in INR terms. Additionally, First Solar is offering aggressive terms to fast track the procurement process so that their thin film modules can be imported before the possible imposition of ADD. Overall, the price reduction witnessed in the last year was 3% for Chinese crystalline modules and 6% for thin film modules,

Figure 1: Chinese C-Si and thin film module prices in last year

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After a slight decline in 2013, inverter prices have stabilized in 2014. In the short run, a further reduction in prices is possible only with the installation of large projects with large order sizes. Industry players believe that for orders over 100 MW, prices can be as low as INR 3.0/Wp.

Figure 2: PV inverter prices in last year

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Mudit Jain is a consultant at BRIDGE TO INDIA.

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