CHENNAI: Solar power developers in Tamil Nadu have urged the union government to allow import of cost-effective solar panels from China and other countries, at least until such time when there is a competitive domestic market for them.
The Tamil Nadu Green Energy Corporation Limited (TNGECL) now mandates procuring panels from Indian manufacturers from an Approved List of Modules and Manufacturers (ALMM) to be used for all projects including rooftop and grid-connected solar projects. The mandate was put in place in April last year following a directive from the Ministry of New and Renewable Energy’s (MNRE) in order to encourage domestic manufacturing.
However, this policy is affecting private solar projects, as grid connectivity is denied to projects using non-ALMM-approved panels, said K Venkatachalam, CEO of the Renewable Energy Producers Association. Speaking to TNIE, Venkatachalam said,
“Due to the ALMM policy, many developers are facing delays in procuring new solar panels because of the limited number of domestic manufacturers. While solar panels from China cost Rs 70 lakh, developers are forced to spend Rs 1.5 crore for Indian panels. TN is the only state where even roof top panels come under the ALMM rule enforced by the TNGECL, despite exemption by the MNRE.”
Tamil Nadu, which enjoys 300 sunny days annually, has vast potential for harnessing solar energy. Relaxing import restrictions will reduce project costs and speed up renewable energy adoption in the state and help meet the centre’s target of Zero Carbon Emissions by 2030, solar power developers said.
V Bharathi Kannan, director-legal of the Renewable Energy Producers Association said that the union ministry should also reconsider its notification on the Anti-Dumping Duty (ADD) on certain types of glass used in solar projects. He said that the ADD will increase project costs further, making them financially unviable.
Meanwhile, the MNRE is planning to mandate 10% battery storage capacity for solar and wind energy projects to ensure the use of green power during both day and night without interruption.
A senior TNGECL official told TNIE that suggestions on ALMM have been received and a detailed report will soon be submitted to the MNRE.