Taxes slow India’s solar power rollout but boost manufacture

BENGALURU, India — In May last year Fortum India, a subsidiary of a Finnish solar developer, won the bid for a solar power project in the state of Gujarat. A machine operator works on part of the solar panels production process at Premier Energies Solar on the outskirts of Hyderabad, India, Wednesday, Jan. 25, 2023. “Global supply chain issues, material shortages and, of course, the duty on solar components has led to a lot of projects being postponed.” Rustagi said the growth in domestic manufacturing as a result of the tax is “encouraging, but I do not think it is sustainable.” He added that the government “should be aiming to create strong domestic capabilities that can be a preferred choice without any taxes or duties.” Machine operators work on cell printing for solar panels at Premier Energies Solar on the outskirts of Hyderabad, India, Wednesday, Jan. 25, 2023. An operator inspects an electric image while producing solar panels at Premier Energies Solar on the outskirts of Hyderabad, India, Wednesday, Jan. 25, 2023. “Mandates such as the approved list of manufacturers are to make sure the quality of products coming into India are of a certain minimum quality.” An employee works to unload cell wafers at Premier Energies Solar on the outskirts of Hyderabad, India, Wednesday, Jan. 25, 2023.