What are the key market trends you’ve observed in the Indian solar module and cell industry over the past year?
India’s remarkable progress in solar energy adoption is evident as it ranks fourth globally in terms of installed solar capacity. LONGi continues to contribute to the government’s ambitious target of achieving 280 GW of solar capacity by 2030.
Several key trends have emerged in India’s solar energy sector:
- The Indian market appears wary of large, high-wattage solar modules. There are concerns regarding compatibility with existing infrastructure, technical feasibility, and the inherent risks involved in implementing novel technologies.
- There is a rising interest in bi-facial solar technology among commercial and industrial (C&I) developers.
- Solar developers are frequently cautious while working with unproven technology.
- We have been observing a significant increase in exports from domestic module manufacturers while installers are struggling to meet project deadlines, the focus of domestic manufacturers on exporting to the international market suggests that manufacturing solar modules in India is not economically viable given market price expectations.
Can you highlight some of the unique challenges and opportunities you see in the Indian solar industry compared to other global markets?
Challenges:
- The ministry is diligently focused on safeguarding domestic manufacturing efforts, yet the nation’s capacity for 500Wp+ modules has barely reached 10 GW. Unfortunately, due to policy uncertainties, the market isn’t aligning with the expected organic supply-demand trend. This inconsistency makes it challenging for developers to effectively plan their projects.
- While protectionist measures aim to nurture local manufacturing, there’s a concern that an excessive focus on protectionism might inadvertently hinder the growth of manufacturing by limiting healthy competition. A strong manufacturing ecosystem thrives on competition, and this can be fully realized when international manufacturers participate in the market.
- A lack of emphasis on research and development (R&D) activities among manufacturers. This deficiency has broader ramifications, as it hampers the maturation of the upstream supply chain, which is currently underdeveloped.
- The potential for growth within the solar industry could be impeded by the absence of optimized storage technology.
However, policy makers are already taking action to streamline all the above challenges.
Opportunities:
- The growing international power cooperation will make India as a power producing and exporting country. This growing engagement holds the potential to reshape India’s role in the global energy landscape.
- The Indian government’s efforts to develop green hydrogen will provide the renewable energy industry a further inorganic boost.
- India’s recent entry into the field of innovation offers a distinct advantage: the opportunity to nurture new, untapped ideas.
What strategies does LONGi employ to maintain a competitive edge in terms of both product quality and pricing in the Indian market?
LONGi stands for quality, innovation, and sustainability. Our focus goes beyond competition — we’re here to contribute:
- Innovating technology
- Elevating quality standards
- Promoting industry sustainability
India aims to achieve ambitious solar capacity targets. How does LONGi plan to contribute to this goal while ensuring consistent product innovation?
India is at the forefront of guiding the world towards a more environmentally conscious future, focusing not only on power but also on transforming the entire energy industry. LONGi is fully aligned with India’s vision, sharing the commitment to this sustainable journey. Every action LONGi takes in its growth trajectory will be with ensuring a harmonious alignment towards a greener and more sustainable world.
- The execution targets are a process, but it is important to deliver components which can sustain expectation of long tenure of generation in a sustainable way.
- LONGi will ensure continuous innovation which will help solar projects generate more power. At the same time, we will ensure that the technology we deliver is sustainable for long operating years.
- We will ensure the high-quality solar modules we supply will function for a full 25 to 30 years.
- We will maintain our presence as a manufacturer for a longer period in order to service the large volume of modules we have shipped to India.
Given the evolving regulatory landscape, how does LONGi adapt its business strategies to stay compliant and seize emerging opportunities in India?
The evolution of regulatory guidance is inevitable in any growing market. But since India is being considered as a matured solar industry in a global perspective, I am sure the dilemmas will reduce with time.
Policy frameworks are designed to uplift industries, yet execution bottlenecks can arise. Clearing these obstacles would greatly benefit the entire sector.
As a company, we are committed to adhering to local regulatory requirements and will continue to do so proactively.
How does LONGi address concerns related to supply chain disruptions and ensure a steady flow of products to meet the demands of the Indian market?
The recent years have provided valuable lessons in effectively navigating supply chain challenges. Such disruptions often stem from two primary factors:
- Concentrating supply chains within the same geographic area can lead to vulnerabilities.
Diversifying sourcing and distribution can enhance resilience. Which LONGi is already doing actively.
- Supply chain disruptions can also occur when raw materials are utilized across multiple industries. Dependencies on such materials underscore the need for contingency plans to manage fluctuations.
Our focus is directed towards cell technology that we believe carries minimal risk of future disruptions. We are dedicated to ensuring a stable and resilient supply chain.
This is the reason LONGi does not launch a product that is not sustainable in manufacturing.
