Solar module exporters hit by US tariffs

Tariffs by the United States on solar imports have dealt a heavy blow to Indian solar module exporters, forcing manufacturers to redirect volumes back into the domestic market, according to a report by ICRA. The development has aggravated the existing oversupply situation in India’s solar module industry and is expected to squeeze margins and accelerate consolidation among smaller players. ICRA estimates India’s solar photovoltaic (PV) module manufacturing capacity to rise sharply to over 165 gigawatts (GW) by March 2027 from around 109 GW at present, mainly driven by policy measures such as the Approved List of Models and Manufacturers (ALMM), basic Customs duty (BCD) on imported modules and cells, and the production-linked incentive (PLI) scheme. However, with domestic annual solar installations expected to hover around 45-50 GW direct current (GWdc), the country’s production capacity is projected to far exceed demand, as per a report.

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