New Delhi: The use of solar panels and solar energy is increasing rapidly in India. Meanwhile, America has decided to impose heavy duty on solar cells and solar panels coming from India. The US Commerce Department has fixed anti-dumping duty on Indian solar producers up to 123.04 percent. Apart from this, countervailing duty up to 126.09 percent has also been imposed.
In simple words, if an Indian company sells solar panels in America, it may have to pay much higher duty there than before. This could make Indian solar products expensive in America and make it difficult for Indian companies to do business there.
Why did America impose such a huge duty?
The US Commerce Department says that solar products from some countries including India were being sold in the American market at very low prices. America has also alleged that companies of these countries are getting the benefit of government subsidies.
The investigation into this matter was started after the complaint of American solar companies. The coalition that filed the complaint includes companies such as First Solar, Hanwha Qcells and Mission Solar Energy.
Not only India, action against these countries also
Apart from India, America has also fixed duty on solar products coming from Indonesia and Laos.
Anti-dumping duty has been fixed up to 94.36 percent on Indonesia and up to 65.43 percent duty on Laos. Apart from these, countervailing duty has also been imposed on both the countries at different rates.
What effect will it have on the common man?
Now the biggest question is what effect will this have on the common people installing solar panels in India?
At present, this decision does not have a direct impact on the solar panels installed in Indian homes or sold in India. America has imposed this duty on solar products going from India to the American market.
However, if Indian companies face difficulty in selling their goods in America, they may have to pay more attention to other markets. This is likely to impact the sales, investment and production strategies of Indian solar companies.
On the other hand, whether it will have a direct impact on the price of solar panels in India or not will depend on how companies change their sales and production orientation.
The picture will be clear on October 14
The matter is not completely over yet. The US International Trade Commission i.e. USITC will give its decision on October 14.
The Commission will look at whether US companies have actually suffered or are at risk of future harm from solar products coming from India, Indonesia and Laos.
If the USITC also rules in favor of the US companies, the US Commerce Department could issue a final duty order in November.
Understand the whole matter in simple language
Indian solar companies → sell solar panels in America → America imposes heavy duty on them → Indian panels may be expensive there → Challenge will increase for Indian companies in the American market.
But it would not be right to say that the price of solar panels for common people in India will increase immediately. For this, further decisions and market situation will have to be monitored.
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