20 Apr 2020
Posted in Coronavirus
India should reduce dependence on Chinese solar module market post-COVID-19
A drop in Chinese photovoltaic (PV) module prices may be expected following the COVID-19 epidemic as Chinese manufacturers have been forced to stockpile their modules. Reducing India’s dependence on the Chinese market would, therefore, benefit the solar industry from the cost stability and quality control standpoint, says GlobalData, a leading data and analytics company.
Somik Das, Power Analyst at GlobalData, comments: “Indian engineering, production and construction (EPC) companies such as U-Solar are using this lockdown time to form post-COVID strategies. Indian module manufacturers might strategize to reduce prices since they have a chance to take a larger market share until the Chinese market recovers.
“In essence, it would also be an excellent time to implement domestically manufactured solar PV cells and wafers, which otherwise are imported from China.”
India’s U-Solar Clean Energy is utilizing the lockdown period to improve internal processes and increase the technical skillset of its employees. The company is preparing a strategy to tackle the negative impact of the COVID-19 pandemic on the solar engineering, procurement and construction (EPC) industry by effectively working on project timelines and project costs.
Somik Das, Power Analyst at GlobalData, comments:“All of the company’s current operation sites has been halted. In addition to this, all of U-Solar’s EPC projects are expected to resume only when the lockdown ends. The company’s immediate focus post lockdown period is expected to be on material delivery. The supply chain cycle of solar module manufacturers will pick up within ten to 15 days post the lockdown period. With plans in place, U-Solar might smoothly pick up the pace in its operations once the lockdown comes to an end.”