China, a powerhouse when it comes to producing Solar Panels, is flooding India, the EU, and USA with cheap panels. While this is good for customers and installers who want solar power cheap, it is hurting the domestic industry. But who do you side with? The customer, and the installer, or the producer?

India mulls 70 per cent safegaurd duty on solar equipment imports

NEW DELHI: India has proposed to levy a 70 per cent safeguard duty on import of solar power equipment from countries like China for 200 days to protect domestic industry from "serious injury".

From article, ( [India:]The Directorate General of Safeguards (DGS) has proposed 70% safeguard duty on solar cells and modules imported from China and Malaysia, citing concerns of the domestic industry being damaged on account of increasing solar imports. 

The move comes after a plea was filed by Indian Solar Manufacturers Association (ISMA) before the DGS claiming that on account of the surge in imports of solar many domestic producers have kept their production facilities almost idle and the heavy losses have crippled the domestic industry and therefore requested for the imposition of a provisional safeguard duty. 

While solar cells are imported from China, Malaysia, Singapore and Taiwan, a major quantity of the product is being imported from China. The import volumes of solar cells have increased from 1,275 MW in 2014-15 to 9,474 MW in 2017-18 (Annualized). 

This is an increase of 643% in 2017-18 (Annualized) from the base year 2014-15. Moreover, there has been a sudden surge in imports volumes during the first six months of 2017-18 which is 74% of the imports in 2016-17, the report said.

"Critical circumstances exist requiring imposition of provisional Safeguard Duty immediately in order to save the DI from further serious injury which would be difficult to repair, if the application of this Safeguard measure is delayed," the report added. 

While China's exports to India constituted a paltry 1.52% of its total global exports during 2012, this increased to 21.58% during 2016. 

"The trend in import volumes strongly suggests that imports of solar cells are likely to increase in future due to excess capacity in China, export orientation of producers in China and opportunities lost by Chinese producers/exporters in other significant markets like USA and EU which would force such producers / exporters to target India," the report argues.)