Diversification key to India's solar panel exports after US levy

With the US imposing a 126% tariff, India's solar panel exporters face rising overcapacity and heavy dependence on a single market

On February 25, the United States (US) Department of Commerce imposed preliminary countervailing duties (CVD) of approximately 126 per cent on solar cells and modules imported from India. This has made the US market — which previously absorbed over 95-98 per cent of India’s solar module exports — commercially unviable for many Indian manufacturers who now seek new export markets as the sector grapples with overcapacity. The solar module manufacturing capacity in India more than doubled from 63 gigawatts (Gw) in 2024 to 144 Gw in 2025, but its adoption is relatively slower. 

Solar panel exports to US down in 2025 

India’s export of solar panels to the US fell to $1,245.34 million in 2025, sharply down from $1,788.03 million in 2023. Exports had jumped 3x between 2022 and 2023.  

 

Rise in India’s share in US solar modules imports 

India’s share in the US solar modules imports increased gradually from 2.55 per cent in 2022 to 12.11 per cent in 2025. The share of major suppliers, such as Indonesia and Laos, jumped to 37.06 per cent and 15.45 per cent, respectively, while that of Vietnam, Thailand, and Malaysia dropped significantly in 2025.  

 

First Solar and Adani key exports players  

Among India’s major solar panel suppliers in FY25, two of three solar panels manufactured by First Solar were exported. It was one out of three in Adani’s case.