Indian solar panels face US scrutiny for possible links to China forced labor
Since October, the US Customs and Border Protection (CBP) has detained nearly $43 million worth of electronics equipment shipments from India under the 2022 Uygur Forced Labor Prevention Act (UFLPA). This marks a new area of focus for the trade enforcement agency, which aims to prevent goods made with forced labor from entering the US market.
While CBP has not specified the types of detained electronics, industry sources indicate that polysilicon, a key material in solar panels, is a high-priority sector under the UFLPA. Historically, most stopped shipments in this category have been solar panels. A third of the Indian electronics shipments detained were denied entry, compared to only 5.4% of shipments from Malaysia, Vietnam, and Thailand—countries that are top US suppliers of solar components.
The detentions are a setback for Indian producers positioning themselves as alternatives for US solar developers, who are looking to avoid the tariffs and UFLPA-related delays affecting primarily Chinese products. According to trade lawyer Tim Brightbill of Wiley Rein LLP, the increase in detentions could be due to the presence of Chinese-made solar cells in Indian panels, raising UFLPA compliance risks.
US imports of solar products from India have surged, reaching $2.3 billion last year. In the second quarter of 2024, India accounted for 11% of US panel imports, more than double its share from the previous quarter, according to S&P Global Market Intelligence. As recently as 2018, the US was not importing any solar panels from India.
The heightened scrutiny of Indian shipments reflects CBP’s expanded UFLPA enforcement, moving beyond major Chinese solar panel manufacturers, many of whom have switched to US and European polysilicon suppliers to avoid detentions.
Indian solar companies like Waaree Technologies and Adani Enterprises are leading suppliers to the US market. A spokesperson for Adani confirmed that some of their shipments had been detained but were subsequently released, affirming compliance with UFLPA regulations.