Follow India Renewable Energy News on WhatsApp for exclusive updates on clean energy news and insights

India’s Solar Export Strategy Faces Test After US Imposes Heavy Duties

India’s solar module export sector may need to rapidly diversify its global markets after the United States imposed steep countervailing duties on solar imports from the country, making the US market significantly less viable for many manufacturers.

On February 25, the US Department of Commerce announced preliminary countervailing duties of around 126 percent on solar cells and modules imported from India. The decision poses a major challenge for Indian solar manufacturers, as the US previously accounted for nearly 95–98 percent of India’s solar module exports.

The development comes at a time when India’s solar manufacturing capacity has expanded rapidly. The country’s solar module production capacity surged from around 63 GW in 2024 to approximately 144 GW in 2025. However, domestic demand has not grown at the same pace, increasing the industry’s dependence on exports.

Data shows that India’s solar panel exports to the US have already declined. Export value dropped to about $1,245.34 million in 2025, compared to $1,516.49 million in 2024 and $1,788.03 million in 2023. Notably, exports had surged nearly threefold between 2022 and 2023, reflecting strong demand from the American market during that period.

Despite the decline in export value, India’s share in US solar module imports has gradually increased in recent years. The country’s share rose from around 2.55 percent in 2022 to about 12.11 percent in 2025. At the same time, Indonesia and Laos emerged as dominant suppliers, accounting for roughly 37.06 percent and 15.45 percent of US imports respectively, while shipments from Vietnam, Thailand and Malaysia declined significantly during 2025.

Among Indian solar manufacturers, exports form a significant portion of production for certain companies. Data for FY25 indicates that nearly two-thirds of the solar panels produced by First Solar’s Indian facilities were exported. In comparison, roughly one-third of Adani Solar’s production was shipped overseas.

Other domestic manufacturers such as Waaree, Vikram Solar, Rayzon, Saatvik and Emmvee recorded much smaller export shares relative to their overall production.

Industry experts note that with the US market becoming less accessible due to higher duties, Indian solar manufacturers may need to expand into alternative markets in Europe, the Middle East, Africa and Southeast Asia. Diversifying export destinations could help the sector manage rising production capacity and reduce reliance on a single dominant market.