Indian solar projects banking on a continuous supply of ever-cheaper panels are now under threat as China’s appetite props up prices.
The global spot market price for solar panels in the second quarter fell at the slowest pace since the three months ended in December 2015, according to data compiled by PVinsights. While the decline has picked up slightly this month, they’re down 10% since the beginning of the year, compared with a 35% drop in 2016.
The slowdown is complicating plans for solar developers in India, who were anticipating the cost of their panels would fall more quickly and are now facing an unexpected reduction in their returns. That’s making the industry more cautious about future developments, adding a hurdle to Prime Minister Narendra Modi’s ambition for quick growth in clean-energy.
“If the current module prices do not go down, the developers would take a hit on their expected returns as these bids carry razor-thin margins,” said Allen Tom Abraham, a New Delhi-based analyst with Bloomberg New Energy Finance. Read More…