India’s solar manufacturing sector is gaining significant momentum on the global stage, with the United States emerging as its most important export destination. A recent report by PL Capital highlights that shifting trade policies and restrictions on China-linked supply chains have opened new opportunities for Indian solar manufacturers in the American market. As a result, the US accounted for nearly all of India’s solar module exports between 2023 and 2025.
The report points out that India’s overseas shipments of solar modules saw an exceptional rise, increasing almost ninefold in 2023 before doubling again the following year. This rapid expansion has strengthened India’s standing as a reliable alternative supplier within the global solar value chain, particularly at a time when countries are actively diversifying sourcing options for clean energy equipment.
Pricing has played a critical role in India’s growing appeal. Solar modules produced in India are estimated to be between 19 percent and 21 percent less expensive than those manufactured in the United States, making them highly competitive for large-scale projects. However, India is not without rivals. Southeast Asian nations such as Vietnam and Malaysia remain strong competitors, with Vietnam holding the largest share of US solar imports. Even so, India has steadily improved its position, expanding its share of US imports significantly over a two-year period.
The American solar industry itself experienced notable growth in 2024, adding substantial new generation capacity. This expansion was largely driven by state and federal incentives aimed at accelerating clean energy adoption and strengthening domestic manufacturing. While this growth has benefited Indian exporters, it has also prompted increased scrutiny from US authorities.
Indian solar companies now face potential hurdles, including ongoing investigations into alleged dumping practices and the introduction of new tariffs scheduled to take effect from August 2025. These measures, along with additional penalties linked to geopolitical considerations, have raised concerns about the sustainability of recent export gains.
At the same time, India is rapidly expanding its domestic renewable energy infrastructure. The country’s total power generation capacity has grown sharply since 2019, largely fueled by renewable projects. Looking ahead, renewable installations are expected to rise substantially by 2030, with solar energy accounting for a dominant share. India’s solar module manufacturing capacity is also projected to scale up significantly, supported by targeted government policies designed to position the country as a global clean energy powerhouse.
