#Budget2010 : For Solar Panels, the Sun is Not Yet Out

The concessional customs duty of 5 percent on import of machinery and equipments for setting up photovoltaic and solar thermal power plants will help in bringing down the overall cost of solar power. The move entails a reduced project cost and higher rate of return for project developers. Earlier the customs duty was 7.5 percent. However, there is an oversupply of solar panels and modules in the global market which is likely to last for another couple of years. So the manufacturers will really benefit only when the oversupply is absorbed.