India’s exports of PV modules increased 23 times between fiscal year 2022 and fiscal year 2024, potentially allowing the country to replace Southeast Asian countries as the largest exporter of solar energy to the US market, according to a new report from the Institute for Energy Economics and Financial Analysis (IEEFA). ) and JMK Research.
According to a new report by IEEFA and JMK Research, India’s exports of PV modules in FY 2024 amounted to approximately USD 2 billion, more than 23 times more than in FY 2022.
The US market accounted for 97% of India’s PV exports in FY 2023 and 99% in FY 2024, with additional exports to South Africa, Somalia, Kenya, UAE, Afghanistan, Nepal and Bangladesh.
According to the report, despite higher logistics costs, Indian manufacturers earn 40% to 60% more profit margins from PV module sales in developed markets such as the United States than in India.
Other driving factors for the surge in PV exports include lower demand for domestic PV modules following the delayed implementation of the approved list of models and manufacturers in April 2024, and several countries considering India as a viable option for their ‘China Plus One’ strategy.
The United States has imposed steep tariffs on PV products from China to phase out Chinese imports. The U.S. government could extend these tariffs to imports from Southeast Asia (SEA), depending on the outcome of an ongoing anti-dumping and countervailing duty (AD/CVD) investigation by the U.S. Department of Commerce.
The report said that with the expiration of the Free Trade Agreement and an ongoing investigation into anti-dumping and countervailing duties, India could potentially replace Southeast Asian countries to become the largest PV exporting country to the United States.
The report recommends that as India positions itself as a viable alternative to China, balancing the demands of export and domestic markets is important. It is crucial to ensure sufficient domestic supply, especially for market segments with smaller order sizes, such as residential rooftop solar. The gap between supply and demand also impacts solar panel prices – a crucial factor for the price-sensitive residential rooftop solar segment.
India exported over 5.8 GW of PV modules in FY 2024 – three times more than FY 2023 – representing over 29% of production. Waaree Energies, Adani Solar and Vikram Solar led exports, each shipping more than half of their annual output, while companies such as ReNew and Tata Power diverted much of their production for captive use.
Several other Indian PV manufacturers – Grew Energy, ReNew Power, Navitas, Solex Energy and Saatvik Energy – are pursuing export markets and setting up supply chains abroad. Waaree Energies and Vikram Solar are also planning to set up PV manufacturing capacity in the US market, taking advantage of incentives offered under the US Inflation Reduction Act (IRA).
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