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Solar power tariffs continue to decline as technology advances and mass adoption increases across the globe. According to a report by PL Capital, India's solar industry is finding a major customer in the United States. The reason can be attributed to the U.S. restricting imports from China-linked supply chains. As a result, the U.S. became the main buyer, taking about 97 per cent of India's solar module exports between 2023 and 2025.
The report shows that India's solar module exports rose nearly nine times in 2023 and doubled again in 2024. It notes that this shift positions India as a "credible alternative supplier in the global solar value chain." Cost is a major factor in this trade relationship. Indian solar modules are 19 per cent to 21 per cent cheaper than those made in the U.S., which helps them stay attractive to buyers. However, India faces competition from Southeast Asian countries like Vietnam and Malaysia. While India's share of U.S. solar imports grew from 3 per cent in 2022 to 11 per cent in 2024, Vietnam still leads with a 36 per cent share. The U.S. solar sector itself had a "milestone year" in 2024 by adding 50 GW of new capacity, fueled by local government incentives. Despite the recent success, Indian exporters face new challenges. The U.S. government is investigating claims of "alleged dumping margins of 123 per cent for India." Furthermore, a new 50 per cent tariff on Indian imports is scheduled for August 2025. This includes a penalty linked to India's continued oil imports from Russia. These new taxes and investigations represent a "concern for Indian exports" as the U.S. tries to build its own manufacturing base. To meet both domestic and global demand, India is scaling up its own production. India's total power generation capacity grew from 356 GW in 2019 to 475 GW in 2025. This growth is mostly due to new renewable energy projects. Experts expect renewable installations to reach 430 GW by 2030, with solar power making up a large portion of this total. The country's module manufacturing capacity is estimated to reach 180 GW by 2030. This growth is supported by various government policies aimed at making India a leader in renewable energy. (ANI)
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