China's energy crisis is already affecting the cost of solar projects in India, because India's photovoltaic installations rely heavily on Chinese components. According to Manjesh Nayak, co-founder and CHIEF financial officer of Oorjan Cleantech, the cost of pv projects in India has risen by 10-15%, which in turn has resulted in an increase of about INR 0.20-0.30 (us $0.003-0.004) in the PPA price for solar power system.

"Coal shortages and power rationing in China have severely impacted production lines and schedules, causing upward pressure on solar hardware prices and uncertain delivery times. India's hardware sector has also been adversely affected as its solar hardware brands are heavily dependent on Chinese imports, such as solar cell, wafer and inverter hardware, "he said. Nayak said.

The price increase in India comes as pv developers rush to complete projects delayed by the COVID-19 lockdown and seek to take advantage of duty-free opportunities between the expiry of the guarantee duty on imports from China, Thailand and Vietnam at the end of July and the introduction of the basic tariff on solar mounting structure from April 1, 2022.