Hyderabad: Chinese companies have suddenly increased the cost of solar modules, used in solar power plants, to Rs 35,000 per MW. Compared to manufacturers in countries like Germany and Taiwan, the cost of solar modules manufactured in China is lower.
A power department official said the cost of a solar power plant of one MW is about Rs 4.5 crore. The increase in the price of the solar modules will push up the project cost. It will also impact the internal rate of return from such projects.
Chinese firms are constructing 17 solar power projects in India. A representative of as solar power project said that many Chinese manufacturers were reneging on the contracts signed with Indian developers.
In India, any firm failing to meet the project deadline will have to pay penalties. Chinese manufacturers are aware of and have resorted to increasing the price of a crucial component.
The official said that even after the price hike, the cost of Chinese modules were lower than those made elsewhere. For this reason, power developers may not cancel their contracts with Chinese firms.
