India to resume curbs on solar imports to boost local producers

India will reimpose limits on imported solar energy modules, after relaxing curbs for a year, in a relief to domestic manufacturers that had complained of cheaper shipments from overseas.  

The eased rules will end on March 31 and an approved list of domestic models and manufacturers will come back into effect the next day, the renewable energy ministry said in a statement on its website. The list bars imported modules from being used in the country. 

The curbs are part of Prime Minister Narendra Modi’s effort to gain self-dependence in energy by encouraging local solar panel output. In addition to mandating government approval for module suppliers, the country has imposed import taxes on solar power hardware. India temporarily relaxed the ‘approved list’ rules after the government realized domestic capacity couldn’t meet demand, resulting in a yearlong hiatus that drove a flood of imports from China and Vietnam.

“Due to the exemption, domestic module makers manufacturers suffered business losses, as large orders went to China. That resulted in under-utilization of domestic capacity,” Ashwani Sehgal, president of Indian Solar Manufacturers Association, said in a phone interview. “We expect our sales volumes and capacity use to rise now.”