Although the Indian PV exporters of solar energy can benefit from the reduced access of China to the American market in the short term, they must prepare for possible disruptions, both of Chinese price competition and possible American rates for Indian goods, says a new Rubix Data Sciences report
Image: Adani Group
Indian solar manufacturers must prepare for possible disruptions of Chinese price competition and possible American rates for Indian goods. To navigate the shifting of trade conditions, they must diversify markets, expand domestic production and improve product quality, a new report from Rubix Data Sciences, a risk management and monitoring platform.
Recent American tariff increases on Chinese solar polys silicon, silicon waffles and PV cells-now a total of 60%of the opportunities and risks for the Indian solar industry, the report said. With the United States that are good for more than 90% of Indian exports of the solar module in the tax year 2024, manufacturers such as where Energies, Adani Solar and Vikram Solar can benefit because Chinese competitors receive higher costs.
Stronger access to the American market can further export export growth. India, however, relies on China for more than half of its PV cell and module components, in particular polysilicon and waffles. If China is reduced an excess offer to India at lower prices to compensate for American losses, domestic manufacturers can be confronted with margin pressure and intensified price competence.
The United States also indicated with potential mutual rates for Indian goods from April 2025, which can weigh on the export of India, according to the report. Higher rates would eradicate the cost benefit of Indian solar modules on the American market, making it a challenge for the rapid export expansion of the industry.
The United States will remain the dominant export market of India, with its share in the Indian export of solar cells and module rises from 66% and 73% in 2022 to more than 90% in the tax year 2024, Rubix Data Sciences said.
The installed solar capacity of India has grown over the past decade with a 38% composite annual growth rate (CAGR), which surpasses 100 GW, according to Rubix Data Sciences. The country added a record of 24.5 GW of solar capacity in the tax year 2024, more than doubling the installations of the previous year. Rubix Data Sciences pointed to an urge for self-reliance, in which the import of solar module from China fell from more than 90% in the tax year 2022 to 65% in the tax year 2024, while exports rose 23-fold to almost $ 2 billion.
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