The Hidden Cost of Cheap Solar: Why Quality Modules Matter More Than Ever

Cheap solar today may hide higher lifecycle costs tomorrow. Sub-standard modules when they do not deliver the expected performance, have a shorter life span or even create safety problems, the expectation of cheap renewable energy turns out to be a wrong one.

November 20, 2025. By News Bureau

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In India’s solar boom, prices appear attractive — often tempting new installers to enter the business — until they discover the hidden realities behind the low costs. With India’s solar PV module market valued at about USD 7.94 billion in 2024 and projected to grow to USD 21 (approx.) billion by 2033 (CAGR ~ 10.6 percent), every rupee cut seems attractive. Yet recent data show that defect rates in Indian‐manufactured solar modules exceed 8 percent in some cases, with around 20 – 22 percent of observed defects linked directly to poor cell quality or manufacturing faults. Add to this Indian field studies reporting degradation rates above 1 percent per annum for installed modules.

In short, cheap solar today may hide higher lifecycle costs tomorrow. Sub-standard modules when they do not deliver the expected performance, have a shorter life span or even create safety problems, the expectation of cheap renewable energy turns out to be a wrong one. This paper discusses three main aspects of the hidden cost, power generation, life span/safety, and total lifetime value, and contends that the investment in premium modules is not just a matter of choice but rather an indispensable act.

1. Performance: What Hidden Defects Cost You

A module’s job is straightforward: convert sunlight into electricity. But when quality is compromised, real‐world output diverges sharply from label ratings. In India, frequent defects in module manufacturing, such as cell cracks, poor soldering, inadequate clearance distances, or frame gaps, have been documented.

Consider two modules: one priced ultra-low, another slightly higher but from a certified, quality-controlled manufacturer. If the cheaper module suffers 5 percent output loss per year more than the premium one (because of early degradation or mismatches), over a 25-year lifetime that could translate into thousands of rupees worth of missed generation. More so in large commercial installations where every unit matters.

The cost of under-performance isn’t just lost revenue, it also raises the levelised cost of electricity (LCOE) and compromises project bankability. When modules degrade at 1 percent or higher annually (as Indian studies show) instead of the expected 0.7-0.8 percent globally, the difference mounts.

2. Durability & Safety: Risk Beyond Output

The use of low-cost solar modules does not only result in low production; they can also come to an end sooner than expected or even create conditions that can be harmful to safety. A recent incident in India, during routine storms, highlighted how non-engineered structures coupled with poor-quality modules failed under winds of 120 km/h, turning “economical” solar into dangerous debris.

The use of poor manufacturing practices and sub-standard materials increases the likelihood of risks such as glass breakage, frame gaps, hot-spot formation, and fire. A module with a hidden micro-crack may later become a hotspot and ignite. According to a review, module failures due to inadequate design or defects can cost 10 times the equipment cost when they cascade into fire or structural damage.

Thus, choosing ultra-cheap modules that compromise on engineering, certification (e.g., BIS/IS standards) or change control puts you at risk of operations disruption, extra maintenance, insurance challenges, and unsafe conditions, costs that don’t show up in the initial quotation.

3. Lifecycle Value: The True Cost of Ownership

Solar projects are long-term investments. A module may promise 25-30 years of service. But if its output falls more quickly or it fails early, your payback gets delayed and returns shrink. The initial price is only one part of the cost equation, what matters is cost per unit of energy delivered over its lifetime, plus maintenance, downtime, remediation.

In India’s market, where cheap imports or low-cost manufacturing sometimes sidestep full quality control, the gap between high-quality and low-cost modules is widening. For example, the BEE star-labelling Programme identifies modules’ effective efficiencies and climatic resilience. When buyers ignore this, they end up paying more per kWh, even if the upfront cost was lower.

Moreover, in bank-financed or tender-driven projects, degradation risks, warranty services, and maintenance costs become major stakeholders’ concerns. An inexpensive module can initially perform well but eventually decline in performance causing the need to replace and install reliability measures which will in turn increase the actual cost.

4. Why the Quality Factor Matters Because of India’s Scale

With the goal of 500 GW of non-fossil capacity by the year 2030, India has definitely set very high targets and at the same time, the module volume is also increasing rapidly. However, only increasing production does not assure quality. Indian manufacturing capacity is rapidly expanding, but new capacity often lacks mature operational controls. For example, in manufacturing audits, India ranked among countries with high defect rates over 8 percent.

In this context, quality modules become a strategic imperative:

1. They lower overall system risk and increase banking/financing confidence.
2. They ensure stable generation schedules, especially critical for commercial, industrial and grid-tied projects.
3. They reduce operations & maintenance (O&M) cost and enable long-term system reliability in India’s challenging climate (high temperature, dust, monsoons).

Conclusion: Invest Once, Benefit Long

Cheap modules might seem like a good deal on paper, but when performance dips, failures occur or lifespan is shortened, the hidden cost emerges. In India’s solar boom, where scale is matched by climate stress and project complexity, skimping on module quality can turn savings into liabilities.

For project owners, EPCs and financiers alike, the bottom line is clear: invest upfront in certified, high-efficiency, climate-tested modules and robust structural design. The real question isn’t how little can I spend today? but how much value will I deliver over the next 25–30 years?

The future of solar in India depends not just on installing capacity—but on delivering reliably, safely and cost-effectively. Quality modules may cost a little more today, but they save a lot more tomorrow.

- Shailendra Prajapati, Founder, Whole Solar