While solar power projects are gaining traction in the country, a great many of them have been reported to compromise on the quality of modules used and execution, according to a new finding by Intersolar India. The extremely low bids in the recent state solar auctions are feared to aggravate the issue owing to the focus on efficiency rather than quality when it comes to completion of such projects.

There seems to be a blatant disregard for the quality of execution in projects, potentially leading the grid to become unstable. A lot of developers are also failing to conduct proper module tests and are using questionable practices to enter the market. Such issues will likely drive international investors away, who will be needed to achieve the 100 GW by 2022 target for solar. But, they may also be an opportunity in disguise for EPC retrofitting and improvements in quality of solar plants a few years after they go online.


Source: The Hindu Businessline

The problem at hand can also potentially result in bankruptcy for developers who would be forced to sell projects at dirt cheap prices. Most solar auctions in the recent times have seen 30-50 large bidders, with inexperienced developers winning them and then failing to deliver on the projects.

Bidders often promise to deliver power at low tariffs, disregarding the concept of sustainability, and riddling the whole process with a bunch of compromises. This severely undermines the credibility of the industry as a whole and might require intervention from the government who could blacklist defaulters and make it difficult for speculators to enter this space.

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