U.S. Absorbs 97% of India’s PV Exports Amid Domestic Policy Delays

The U.S. has emerged as a top destination, accounting for 97% of India’s PV exports in FY23 and FY24. This shift is driven partly by delays in implementing India’s Approved List of Models and Manufacturers, prompting PV manufacturers to sell high-value products abroad.

Experts note this international focus could help Indian manufacturers build economies of scale and enhance competitiveness, but they stress the importance of boosting domestic capacity to achieve long-term global market leadership. Vibhuti Garg, Director-South Asia at IEEFA, highlights that backward integration in PV manufacturing is essential for India to tap into broader markets like Europe, Africa, and Latin America.

Further boosting this trend is the U.S. Inflation Reduction Act (IRA), encouraging Indian companies to set up facilities overseas. Companies like Waaree Energies and Vikram Solar have announced large-scale manufacturing plants in Texas and Colorado, respectively, set to go online by 2024. Saatvik Energy, Navitas Solar, and Premier Energies are also establishing manufacturing capacities in the U.S. to meet the surging demand.

However, balancing international demand with India’s domestic solar goals is critical. With India aiming to generate 500 GW of renewable energy by 2030, analysts caution that exports could affect domestic availability, particularly for residential rooftop solar projects. Jyoti Gulia, Founder of JMK Research, notes that limited supply for smaller orders could impact this price-sensitive segment.