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Indian Solar Exporters Eye Africa as US Imposes Steep Duties

Following the imposition of fresh countervailing duties by the United States on solar module imports from India, Africa is emerging as a potential alternative market for Indian manufacturers, according to Santosh Kumar Sarangi, Secretary at the Ministry of New and Renewable Energy (MNRE).

The US has introduced countervailing duties of up to 126% on solar module shipments from India, Indonesia, and Laos, citing alleged domestic subsidies that make imported products more competitive than American-made alternatives. In response to the development, Sarangi indicated that Indian exporters may need to explore new geographies while any review process unfolds.

He suggested that Africa presents significant opportunities not only for module exports but also for project development under the Renewable Energy Service Company (RESCO) model. Under this structure, a developer installs, owns, and operates a solar system at a consumer’s premises, with the customer paying for the electricity generated while benefiting from mechanisms such as net metering and lower power bills.

India has already been actively involved in supporting Africa’s clean energy transition through the International Solar Alliance (ISA), a multilateral initiative backed by India and France. The alliance recently launched the $200 million Africa Solar Facility aimed at mobilising renewable energy investments across the continent.

Addressing the US action, Sarangi clarified that the Indian government does not provide direct subsidies to domestic solar module manufacturers. He noted that no funds have yet been disbursed under the production-linked incentive (PLI) scheme, and therefore the basis on which the US calculated subsidies would need closer examination. Until any reassessment of the countervailing duty is undertaken, exporters will have to adjust to the new trade environment.

While advocating diversification into markets such as Africa, Sarangi also emphasised that Indian manufacturers must remain globally competitive on pricing. China currently dominates the solar equipment supply chain and remains Africa’s largest supplier, underscoring the competitive landscape Indian exporters will face.