In December 2024, India imposed a five-year anti-dumping duty on imports of textured tempered solar glass from China and Vietnam. This decision has significantly affected the pricing structure of solar modules in the country. While the primary aim is to protect domestic manufacturers from unfair trade practices, it has led to a noticeable increase in the cost of solar panels.
📈 Price Surge Due to Anti-Dumping Duty
The anti-dumping duty ranges from $565 to $677 per metric ton, depending on the country of origin. Given that solar glass constitutes approximately 8–12% of a solar module’s total cost, this additional duty translates to an increase of about 3–5% in the overall module price.
🧾 Breakdown of Cost Increase
| Component | Percentage of Module cost | Impact of Anti-Dumping Duty |
| Solar Glass | 8—12% | 3—5% increase |
| Other Components (Cells,Frame, etc.) | 88-92% | Minimal |
| Total Module Cost Increase | — | 3-5% |
🏭 Domestic Manufacturing vs. Imported Glass
Prior to the imposition of the anti-dumping duty, India relied heavily on imports for solar glass, with China and Vietnam accounting for 98% of the total imports. The surge in imports at lower prices adversely affected local manufacturers, leading to reduced market share and underutilization of domestic production capacity.
The anti-dumping duty aims to level the playing field by making imported glass more expensive, thereby encouraging the use of domestically produced solar glass. This move is expected to bolster local manufacturers and reduce dependency on imports in the long term.
⚠️ Short-Term Challenges
While the policy supports domestic manufacturing, it also presents certain challenges:
- Higher Costs: The immediate increase in module prices may affect the affordability of solar installations for consumers.
- Supply Chain Adjustments: Domestic manufacturers may need time to scale up production and meet the demand, leading to potential supply chain disruptions.
🔮 Long-Term Outlook
In the long run, the anti-dumping duty is expected to:
- Encourage Investment: Stimulate investment in domestic manufacturing capabilities, leading to technological advancements and cost reductions.
- Enhance Competitiveness: Improve the competitiveness of Indian solar modules in the global market.
- Promote Sustainability: Support the government’s renewable energy goals by fostering a self-reliant solar industry.
✅ Conclusion
The imposition of the anti-dumping duty on solar glass imports is a strategic move to protect and promote India’s domestic solar industry. While it has led to a short-term increase in solar module prices, the long-term benefits of a robust and self-sustaining solar manufacturing sector are expected to outweigh these initial challenges.
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Anya Gupta, Marketing Executive @ NANOSEMI
9560265963