Why RenewSys Wants To Shield Indian Encapsulant Market From Imports?

Indian solar manufacturer RenewSys India is now facing competition from cheap imports of solar encapsulants into the country. The Hyderabad-based company, one of the major producers of EVAs and encapsulants, sees these low-cost imports as a significant impediment to the growth of Indian solar manufacturers involved in the production of these items.

However, RenewSys is not alone. Other solar encapsulant manufacturers in the country are observing the same trend. RenewSys recently approached the Union government, alleging the dumping of cheap solar encapsulants in India, which is harming the domestic sector. The Director General of Trade Remedies (DGTR), after reviewing the application, found the allegations worthy of investigation and has ordered a probe for imposition of anti-dumping duties on the item. 

What Is the Matter About

In its petition, RenewSys stated that cheap solar encapsulants are allegedly being dumped in India from countries such as South Korea, Thailand, and Vietnam. The petition has requested an investigation to determine the injury caused to the domestic industry by these imports.

“The applicant (RenewSys) has furnished prima facie evidence establishing that the imports have caused material injury to the domestic industry. The imports are undercutting domestic prices, depressing industry prices, and preventing price increases. This has adversely impacted the profitability of the domestic industry, which has deteriorated during the injury period,” a notification from DGTR said.

Who Is Making Solar Encapsulants in India?

While RenewSys is a major producer of encapsulants, other companies in India are also in this trade and are anticipating reduced profits and sales due to the alleged dumping of cheap imports. In addition to RenewSys, companies such as Vishakha Renewable Pvt. Ltd., Navitas Alpha Renewables, ECAP Green Tech Pvt. Ltd., Alishan Green Energy Pvt. Ltd., Pixel Redefining Solar, Enerlite Solar Films India Pvt. Ltd., and Filmtech Solar Pvt. Ltd. are also manufacturing encapsulants.

In the petition before the DGTR, two producers—Vishakha Renewables Pvt. Ltd. and Navitas Alpha Renewables—have supported the application, seeking an investigation.

What Is a Solar Encapsulant

Solar encapsulants are polymer-based components used in the production of solar modules, both in India and globally. They encapsulate solar cells, providing adhesion and cushioning to ensure long life and performance. They are manufactured using plastic extrusion technology, where polymer-based resin is mixed with several additives. The mixed material is then passed through heat and pressure to form sheets that fit into solar modules.

What Imposition of Anti-Dumping Means

In India, the solar industry has previously received government protection for several segments. For example, Borosil Renewables, a leading solar glass maker, approached the DGTR seeking the imposition of anti-dumping duties on cheap imported solar glass. After investigation, the DGTR imposed duties, helping the domestic producer counter low-cost imports from China, improve margins, and increase profits. Earlier, the firm had to reduce selling prices drastically to compete, but the imposition of duties allowed it to price products according to production costs.

The likely imposition of anti-dumping duties on solar encapsulants is expected to boost margins and profits for Indian manufacturers. This will not only help them maintain healthy margins but also provide protection against cheap international imports of the same product.