Solorate side: The incentive scheme linked to production has increased the manufacture of cells and solar modules to 74 GW and 25 GW, respectively | Photo credit: Dhiraj Singh
Last month, since the world remained concerned about tariff war between the United States and China, the Trump administration made a movement that probably has a cacophonic echo in India; He gave a large number of dormations in solar cells and modules of Cambodia (3,521 percent), Malaysia (approximately 40 percent), Thailand (approximately 375 percent) and Vietnam (approximately 400 percent).
For Indian solar manufacturers, this seems to be more melodious music than a success of Mangeshkar can: the US market is a blue ocean for them. Thanks to the incentive scheme linked to production (PLI), India today has manufacturing capabilities of 74 GW and 25 GW modules and cells, respectively (cells enter the manufacture of modules). Therefore, it seems that the lucrative US market is signaled to Indian manufacturers such as where, Gautam Solar, Jackson Solar and energy grew.
Or is it?
As some people in the industry, such as Rishabh Sharma, chief – international sales, Adani Solar, understand it, US rules are more nuanced. Since tariffs are in “cells or cells assembled in modules”, if an Indian company buys cells from any of the countries affected by the rate to make modules in India, its products would attract the same high rates.
However, modules made with cells from other countries or cells made in India may have the tariff advantage.
This poses another problem. India has 25 GW or cell capacity. If most of these are going to make modules for the US, what is left for Indian solar developers? After all, with the non -tariff barrier called ‘Approved list of models and manufacturers (ALMM), Indian solar energy companies cannot import things easily
Short -term pain
In the short term, American tariffs on the solar modules of Southeast Asia “will definitely create pressure on Indian projects with delivery challenges and an increase in module prices”, Praadep Sharma observers, vice president of acquisitions, in Adrlatables. “However, with a significant module manufacturing capacity increasing by 2025-26, supply pressure is expected to be relieved, and the market must be stabilized in the long term,” he adds. Assume that the government can force national manufacturers to allocate some capacity for national sales.
There is also the opinion that Indian manufacturing capacity can serve both national and the United States. “It is important to keep in mind that the Almm of India is already 75 GW, more than the national annual requirement of 30-35 GW”, Hardip Singh, Coo, Cooper notes, a solar manufacturer, a manufacturer of solar cells and modules. “Since the ALMM is expected to cross 100 GW in the next 12 months, there is a wide capacity to meet both international demand and renewable energy objectives of India,” said Singh Business line.
There are also whispers that the United States could launch an investigation aimed at cells and modules of India, Indonesia and Laos, something that Indian solar developers would welcome.
It is a story that develops, especially with the current US administration that is not famous for the consistency of politics.
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Posted on May 11, 2025
