The Indian government announced on April 10 that a basic tariff of up to 40% will be levied on imported solar equipment from April 2022 to boost local production.
India’s Ministry of New and Renewable Energy (MNRE) announced that a 40% tariff will be imposed on imported solar modules from April next year, and a 25% import duty on solar cells.
MNRE said that the proposal has been approved by the Ministry of Finance and will be followed by a customs notification. According to the principle of non-retroactivity, the solar energy project that has completed the tender will not receive any tariff compensation.
India has set ambitious solar energy targets, and power generation is also an important industry for the country’s economy, so it is necessary to expand domestic production capacity and reduce dependence on imports to avoid future supply disruptions.
The Indian authorities aim to reach 280 kilowatts (kW) of solar power by 2030, so new solar power plants with an annual capacity of 25 kilowatts are required; currently, 80% of the solar equipment used in India comes from mainland China.