Chinese solar module manufacturers are turning their back on their contracts by demanding an upward price revision on earlier equipment supplied, according to a Livemint report.

Some Chinese suppliers are asking for an additional 6 cents per watt on the existing price of 37 cents per watt.

Paying for solar modules takes up 60 percent of the costs involved in solar projects. Thus, any price rise would significantly affect returns.

The Mint report spoke of instances where the Chinese suppliers were aware that the Indian companies were on a strict deadline to complete projects and could face a penalty if delayed. Companies have to either pay the additional charges to the Chinese suppliers or face the cancellation of their contracts.

The module prices have risen after the Chinese Government has imposed the feed-in tariff regime that provides a fixed price for power producers.Also, the market in the United States in stocking up on Chinese modules to hedge for the import caps that the US government may soon impose.

The Mint also reports of Indian states going back on their commitments for projects at higher tariffs. Such actions would create a fallout in the green energy market, which is seeing a large number of investors.

Major Chinese solar module manufacturers include Trina Solar Limited, Jinko Solar, JA Solar Holdings, ET Solar, Chint Solar and GCL-Poly Energy Holdings Limited.