Hit by steep US tariffs and weaker demand, India’s solar panel exports fell sharply in September, signalling pressure on domestic manufacturers.
India’s solar module exports plunged to their lowest level this year in September as tightened US trade measures sharply curtailed shipments, forcing manufacturers to increasingly rely on the domestic market. Government data shows exports fell to about $80 million in September, down from $134 million in August.
The United States had driven more than 90% of India’s module exports earlier in the year, as American developers sought alternatives to Chinese supplies amid Washington’s restrictions on China-linked products. However, a 50% tariff imposed on Indian modules during the Trump administration, coupled with heightened scrutiny of potential Chinese components being routed through India, has now significantly dampened demand.
“The investigative risk from the US and tariff imposition have materialised for some players,” said Girishkumar Kadam, senior vice president at ratings agency ICRA.
India’s approved solar module manufacturing capacity is about 110 gigawatts and is projected to exceed 165 gigawatts by March 2027. But with overseas demand slowing, analysts warn of oversupply in the domestic market, where annual installations remain well below the 44 to 45 gigawatts required to meet the 2030 renewable energy targets.
Industry executives expect consolidation among smaller module makers as margins shrink. Vertically integrated firms with cell and wafer lines are seen as better positioned to withstand the downturn. Some companies are already shifting focus. Solex Energy, for instance, has scaled back its planned module capacity while expanding cell production to avoid future price wars driven by excess supply.
