India’s solar module exports drop amid U.S. tariffs and scrutiny

India’s solar module exports hit their lowest level this year in September as U.S. tariffs and import checks reduced demand. With overseas orders slowing, manufacturers are turning to the domestic market, heightening fears of oversupply.

Exports fell to 80 million dollars in September from 134 million dollars in August. The United States had made up more than ninety per cent of India’s export market as developers looked for alternatives to Chinese panels. The drop follows a fifty per cent tariff on Indian modules and a U.S. probe into the use of banned Chinese components.

The decline has renewed concern about excess capacity at home. Annual solar additions remain far below the forty four to forty five GW needed for India’s 2030 targets. Domestic demand cannot absorb the industry’s rapid expansion. Approved manufacturing capacity is about 110 GW and is projected to exceed 165 GW by March 2027.

Analysts expect consolidation, especially among firms that only assemble modules. Vertically integrated manufacturers with cell and wafer lines are seen as better placed. Companies are already shifting strategies. An industry group has also advised banks to avoid financing new module plants viewed as unviable.

Compiled from public sources by Power Peak Digest.