Solar power tariffs continue to decline globally, driven by rapid technological advancements and large-scale adoption. Against this backdrop, India’s solar manufacturing industry is gaining significant momentum, with the United States emerging as its largest export destination, according to a report by PL Capital.
The shift has been largely triggered by US restrictions on imports linked to Chinese supply chains. As a result, the US accounted for nearly 97 per cent of India’s solar module exports between 2023 and 2025. The report highlights a sharp surge in outbound shipments, with India’s solar module exports rising nearly nine-fold in 2023 and doubling again in 2024. This trend positions India as a credible alternative supplier in the global solar value chain.
Cost competitiveness has been a major driver of this growing trade relationship. Indian solar modules are estimated to be 19–21 per cent cheaper than those manufactured in the US, making them attractive to American buyers. However, India continues to face stiff competition from Southeast Asian countries. While India’s share of US solar imports increased from 3 per cent in 2022 to 11 per cent in 2024, Vietnam remains the market leader with a 36 per cent share, followed by Malaysia.
The US solar sector itself recorded a milestone year in 2024, adding nearly 50 GW of new capacity, supported by strong federal and state-level incentives aimed at accelerating clean energy adoption and domestic manufacturing.
Despite the recent export success, Indian solar manufacturers face fresh challenges. The US government has initiated investigations into alleged dumping, citing margins of up to 123 per cent for Indian products. In addition, a new 50 per cent tariff on certain Indian imports is scheduled to take effect from August 2025, including penalties linked to India’s continued oil imports from Russia. These developments pose concerns for Indian exporters as the US intensifies efforts to strengthen its domestic solar manufacturing base.
Meanwhile, India is scaling up its own renewable energy infrastructure to meet both domestic and global demand. The country’s total power generation capacity expanded from 356 GW in 2019 to 475 GW in 2025, largely driven by renewable energy additions. Renewable installations are expected to reach 430 GW by 2030, with solar power accounting for a significant share.
India’s solar module manufacturing capacity is projected to touch 180 GW by 2030, supported by a range of government initiatives aimed at positioning the country as a global leader in renewable energy manufacturing and exports.
