Costlier Chinese cells jolt Indian solar supply chains

Surging prices of solar cells from China are rattling Indian module makers who depend on the neighboring nation for the essential component.

Solar developers can choose to delay their projects by a few months until module prices come down, but manufacturers would have to keep their plants idle until then, Hiranandani said.

Meanwhile, the company is left with just enough cells to last this month. To keep operations running, Hiranandani said RenewSys is considering flying in the cargoes next month at additional expense.


To be sure, this is a short-term problem that doesn’t affect all companies equally.

“It’s more of a price issue that a supply issue,” Sameer Gupta, chairman at Jakson Ltd., which runs a module plant on the outskirts of New Delhi. “There’s price volatility, that’s a fact, and it’s hurting those companies more that hadn’t planned in advance.”

Gupta said manufacturers that have both utilities and rooftop solar users as customers can navigate the current challenges better, as rooftop contracts typically allow for regular price adjustments.