India’s Solar Power Surge: A Global Opportunity

India is rapidly transforming from a solar power importer to a significant global exporter. It’s PV module exports surged to US$2 billion in FY2024, a 23-fold increase in two years.

solar power

Driving Factors Behind India’s Solar Export Boom

Several factors have fueled this exponential solar power growth:

  • In the wake of the delayed ALMM implementation in April 2024, domestic demand for PV modules dwindled.
  • China Plus One Strategy: Many countries are seeking alternative suppliers to reduce reliance on China, and India is emerging as a promising option.
  • Diversification and Premium Pricing: Indian manufacturers can achieve significantly higher profit margins by exporting to developed markets like the US.

Key Players and Export Destinations

Leading Indian PV manufacturers, including Waaree Energies, Adani Solar, and Vikram Solar, are at the forefront of this export drive. They are exporting over half of their annual production, with the US being the primary destination, accounting for nearly 100% of exports in 2023 and 2024.

Leveraging US Trade Policies

The US has imposed tariffs on Chinese solar power products to encourage domestic manufacturing and reduce reliance on imports. A similar investigation is underway for Southeast Asian countries, which could further boost India’s export potential.

A Multi-Pronged Approach for Sustainable Growth

To solidify its position as a global solar powerhouse, India must adopt a multi-faceted strategy:

  • Capitalizing on the US Market: India should continue to leverage its strong presence in the US market, the world’s largest solar market.
  • Upstream Integration: To secure long-term competitiveness, Indian manufacturers should focus on integrating upstream components of the solar value chain.
  • Balancing Domestic and Export Markets: While exports are crucial, India must ensure adequate domestic supply to meet the growing demand for rooftop solar and other distributed renewable energy applications.

By effectively balancing these factors, India can not only strengthen its position as a global solar leader but also contribute significantly to its renewable energy goals and economic growth.

This article is based on a report by JMK Research and IEEFA