CHALLENGES OF SOLAR INDUSTRIES

1:IN INDIA SOLAR INDUSTRY HAS MUCH COMPETITION ALREADY WHICH CREATE MARGIN PRESSURE, EXCEPT THIS DUMPING BY CHINA AND USA COMPANIES IN INDIA ANOTHER MAJOR PROBLEM.
IN 2010 GOVERNMENT PUT ANTI-DUMPING DUTY BUT THAT DIDN’T SOLVE ISSUE MUCH.
RECENTLY CHINESE COMPANIES STARTED A PLANT WITH SB ENERGY IN ANDHRA PRADESH THATS ANOTHER BLOW.
http://www.4-traders.com/news/Chinese-plant-to-provide-solar-energy-to-seven-lakh-households-in-Andhra–24609003/
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2:LAND POSSESSION
SOLAR INDUSTRY REQUIRE HUGE LAND BANK FOR OPERATION WHICH IS ANOTHER PROBLEM.
GETTING LAND IN INDIA IS NOT EASY.
AGRICULTURAL LAND CANT BE USED, MANY LEGAL ISSUES FOR LAND ENTITLEMENT ANOTHER PROBLEM.
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3:CAPITAL INTENSIVE
SOLAR INDUSTRY IS HIGHLY CAPITAL INTENSIVE.
SOLAR COMPANIES HAVE TO MAKE HEAVY CAPITAL EXPENDITURE AT START OF THE PROJECT.
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4:FINANCING PROBLEM
SOLAR COMPANIES FACE FINANCING PROBLEM FROM FINANCIAL INSTITUTIONAL.
INDIA IS ALREADY FACING NPA PROBLEM, BANKS PARTICULARLY AVOID FINANCING TO SOLAR INDUSTRY CONSIDERING THEIR HEAVY COST OF OPERATION.
IT CAN EASILY FOUND THAT MOST OF SOLAR COMPANIES SHARES ARE PLEDGED WITH FINANCIAL INSTITUTIONS.
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5:ALTERNATIVE OPTION
THERE ARE ALSO OTHERS ALTERNATIVE SOUCES LIKE BIOMASS, WIND, TIDAL, NUCLEAR.
THIS CREATE HURDLES FOR SOLAR INDUSTRIES.
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6:MAINTENANCE COST

DUST , HIGH TEMPERATURES CONTRIBUTE TO A SIGNIFICANT INCREASE IN THE COST OF OPERATING SOLAR POWER PLANTS IN THE COUNTRY .
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7:IMPORT OF SILICON
TO MANUFACTURE SOLAR CELLS, SOLAR COMPANIES HAVE TO IMPORT SILICON AND SOLAR WAFRES.
THIS IS MAJOR OPERATIONAL COST AND CREATE MARGIN PRESSURE.

WHATEVER IS POSTED HERE ONLY MY PERSONAL OPINION.

Author: Atul Singh Stock Market Analyst

Disclaimer: This Blog, its owner, creator / contributor is not a research analyst and expressing opinion only as an individual investor in Indian equities. He/She is not responsible for any loss arising out of any information, post or opinion appearing on this blog. Investors are advised to consult financial consultant before acting on any such information. All information in this blog is posted for personal study, All information posted on blog is as available in public domain.

3 thoughts on “CHALLENGES OF SOLAR INDUSTRIES”

  1. I bed to differ here sir. Land is available in abundance in Rajastan which has highest solar light availability. In Cities too companies are planning for rooftop solar plant. Solar is less capital intensive compare to coal plant or wind plant. Recently the per MW price of solar electricity was even less then thermal plants. For financing, every capital intensive industries have it be it solar or thermal or nuclear.

    1. I m talking about whole india not only Rajasthan. There is 7 points.
      Roof top solar has no demand in consumer due to awareness, neither government giving attention over it. Now india has surplus power after recent government many developments.
      Another thing for roof top solar there should be such places on roof where proper sunlight available but in india houses are made side by side touching each other. Whether is also factors. Only 5 months there is summer season rest season problem of sunlight.
      Roof top solar for household also costly.

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