Solar panel makers urge govt to curb cheap imports
Manufacturers of solar panels can meet the entire demand of the country, but competition from low quality and cheaper Chinese imports is holding them back.
An increased use of local products in solar home systems will help save foreign currency and boost the renewable energy sector, the manufacturers said.
“We are now fully capable of meeting the country's demand for solar panels,” said Tanjil Chowdhury, president of Solar Module Manufacturers Association of Bangladesh.
Currently, nine local companies produce solar panels with a capacity of 80-100 megawatt of electricity, against the annual demand for 60 MW, he said.
Some of them are also exporting solar panels to countries including Nepal, the UAE, Kenya, Pakistan, Malaysia, and Vietnam.
But, local panel makers are running below their capacity as cheap imports, especially from China, stifle the growth of the nascent industry.
“We are supplying only one-fifth of the total demand in the country,” said Chowdhury, also managing director of Radiant Alliance.
Local companies have invested around Tk 200 crore in solar module plants in the last four years, according to the association.
Munawar Misbah Moin, managing director of Rahimafrooz Renewable Energy, a leading solar panel maker, said his company now utilises only 30-32 percent of its annual capacity of 18MW.
Rahimafrooz has so far exported more than $211,000 worth of solar modules to Nepal, the UAE, Kenya and Pakistan. It also plans to export to Taiwan, China and European countries.
Manufacturers have urged the government to discourage imports of low-grade panels and sought policy support to help protect and flourish the local industry.
“We want specific and effective policies on renewable energy,” said Golam Baki Masud, managing director of Greenfinity Energy.
Local companies offer 20 years of warranty for their products, whereas many imported panels do not provide any warranty at all, due to poor quality, said Masud, also general secretary of the association.
“Customers often suffer as many low-quality panels do not work properly after 2-3 years of installation,” he said.
Local panel makers get zero duty benefit on import of raw materials, but importers of low-quality finished panels are also enjoying the same, Masud said.
Greenfinity, which uses just 20 percent of its annual capacity of 10MW, has so far exported solar panels worth $150,000 to Malaysia.
The government should provide policy support to local panel makers like India and China do, said Moshiur Rahman, chairman of Parasol Energy, another panel manufacturer.
India has made the use of locally produced panels compulsory in all its solar power projects in the public sector, leaders of the association said.
Besides, Indian panel makers get 20 percent price benefit in government procurement, and all imported panels are subject to customs duty, they said.
The Chinese government also provides 17-30 percent cash incentive for exports of solar panels, they said.
The government could set 20-25 percent customs duty and supplementary duty, on average, on the import of solar panels to help contain the inflow of low-grade products, said Chowdhury, the president of the panel makers' association.
A cash incentive of 20-30 percent for exports could also help the local industry grow faster, he said.
Infrastructure Development Company Ltd (Idcol), a state-owned non-bank financial institution, recently celebrated installation of three million solar home systems. It now targets to finance another three million by 2017, as set by Prime Minister Sheikh Hasina.
She also aims to enhance the country's total electricity generation to 24,000MW by 2021, and wants 10 percent of that to be renewable energy.
The solar home systems already installed with Idcol financing are currently generating 135MW in the off-grid areas, where grid electricity may not reach in the near future.
As a result, more than 15 million people are benefitting from solar power to run lights, charge mobile phones, and watch TV, along with using other low-load appliances.
As of October, more than 3.3 million solar home systems have been installed with support from the World Bank and other development partners, according to Idcol, the implementing agency.
Mahmood Malik, chief executive of Idcol, agreed that Bangladeshi companies have the ability to meet the entire demand of the country and the quality of their products is also good.
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