India’s solar power sector is getting commoditized: First Solar

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India’s solar power sector is becoming commoditized and margins are getting squeezed across the sector’s value chain, according to Sujoy Ghosh, country head of US-based First Solar Inc.’s India unit.

First Solar, a US-based photovoltaic (PV) panel maker and one of the first overseas companies to enter India’s solar energy market, started selling solar modules to project developers in India in 2012 and counts the country as its second-largest market after the US in terms of total shipments.

Unless solar module companies are able to differentiate themselves or innovate their products and manage ultra-low costs, they will find it difficult to make money, Ghosh said. “There is a lot of commoditization happening, which will squeeze margins across the value chain. Because the way allocations are being driven in the reverse auctions, everything gets commoditized—right from the development to the technology to the services,” he said.

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