The government subsidy will not be extended to solar plants if they use Chinese panels. The government will give the subsidy to solar plants which use Indian-made solar panels. To encourage solar power, the Central government is extending several incentives, including 30 per cent subsidy, for solar roof top plants.
With the growing demand in India, the Chinese solar companies are flooded in the Indian market and supplying the panels for a cheap rate. Several solar developers buy panels from Chinese companies.
It is alleged that the Chinese companies are supplying low quality solar panels. The officials said sub-standard panels will impact power generation. The ministry of new and renewable energy (MNRE) has issued new guidelines on solar panels.
The Central government is also conducting an anti-dumping investigation on solar power equipment from China, Taiwan and Malaysia.
According to experts, about 30 per cent of imported solar panels are sub-standard. The Central and state governments are extending incentives like 100 per cent VAT exemption in land conversion cost and others.
Sudhakar Rao, Telangana new and renewable energy development corporation vice-chairman and managing director, said to media that they will not give the subsidy if Chinese panels are used.
