Solar tariffs in India ‘could rise by one-fifth in next year’

A report by Indian consulting firm JMK Research and the think tank Institute for Energy Economics and Financial Analysis (IEEFA) has found that solar tariffs in India could rise by 21% over the coming year. According to the research, rising tariffs are a result of increased input costs, which are in turn impacted by commodity prices, and a new import duty on solar modules. An increase in logistics costs, such as freight charges, has also been a factor. In addition, trade barriers, such as a 40% customs duty on imported solar modules and a non-tariff barrier in the form of an approved list of manufacturers have impacted prices.