Que: What are your main product offerings for customers?

Ans: We are selling a mix of both Poly as well as Mono Perc modules. Currently, our maximum selling products are Poly modules. However, recently we are seeing a spurt in the demand for Mono Perc modules. In fact, the gap between mono perc and poly modules is narrowing down. We are planning to introduce 460 W mono perc modules during this REI.

Que: Kindly tell Energetica India readers about Insolation Energy’s manufacturing facility and its production capacity? Do you have any expansion plans as well?

Ans: Our current installed capacity is 200 MW and is a fully automatic line with the least manual intervention. We will have 300 MW of capacity by the end of this fiscal, and by 2024 our aim is to have 500 MW of solar module manufacturing capacity. We are also upgrading and incorporating new equipments for technology up-gradation to expand the market presence. We have one of the best testing equipments for quality assurance and product up-gradation. In last Financial Year 2020-21 we have supplied approx 100+ MW of modules. This year our target is to supply 150 MW and further 250 MW in the next year.

Que: In your view, up to what extent Government’s production-linked incentive (PLI) scheme is helpful for solar manufacturers in India?

Ans: The Production Linked Incentive scheme announced by the Government is a welcome step in the right direction. However, the minimum eligibility criteria is 1,000 MW of manufacturing capacity in the PLI scheme. This means that only the big corporates can take advantage of it. We request the Government of India to reduce this cap so that the MSME sector can also participate in this scheme and become a part of Atmanirbhar Bharat.

Que: Do you have any plans for wafer and cell manufacturing as well in the coming years? Or any new investment plans in the near term?

Ans: Currently, our immediate focus is on module capacity expansion. We aim to have 1 GW capacity within the near future. If the policies are favorable and cheap imports are restricted we may go for cell manufacturing as well.

Que: As a domestic player, how do you see the current market scenario w.r.t. demand, pricing, etc for home-grown products?

Ans: 2021 is going to be a year of uncertainty. Expect price fluctuations across the world. Apart from China, all other countries will face some challenges with respect to pricing and availability. We can expect some stability from the fourth quarter of 2021 or from 2022. Also, with Safeguard Duty (SGD) not in place since August 2021 we may see a spurt in cheap Chinese imports, and the Basic Customs Duty (BCD) proposed from April 2022 is still eight months far. This intervening gap between SGD and BCD will be very tough for domestic manufacturers.

Que: How do you see the rates of tariffs going forward amid raw material prices rising? How are you dealing with the cost pressure?

Ans: The industry is passing through a very tough time ever since the start of the Covid-19 pandemic. We have been witnessing disruptions in raw material sourcing, supply chain management and availability of the workforce. Further, the fear of intermittent lockdowns is adding to the woes. Hence, we are seeing an upward trend in the prices of raw materials. This has a negative effect on our bottom-line. To compensate for the incremental cost the tariffs are expected to go up. We are in the process of increasing our volumes by exploring export opportunities and by expanding our domestic reach. Furthermore, we are upgrading ourselves by adopting better and efficient technologies to minimize the incremental cost.

Que: As India achieved installed 100 GW capacity of renewable energy. How do you see this development?

Ans: This is indeed a remarkable achievement for each one of us. With this, India is on track to achieve 450 GW of renewable energy target by 2030. The major chunk of which is planned from solar (280 GW). This means we have to add approx 25-30 GW of solar capacity every year. With PLI Scheme, proposed BCD, favorable policies and restrictions on cheap imports this amount of demand can give a boost to domestic manufacturing which will make India an international hub for solar manufacturing.