126% jolt: US duty clouds India's solar exports biz

CHENNAI: India's solar exporters face a severe jolt after the US commerce department proposed countervailing duties of 125.9% on crystalline silicon photovoltaic cells from India, citing alleged subsidies. The preliminary finding covers shipments to the US, which absorbs more than 95% of India's solar cell and module exports.

The duty is likely to wipe out the cost advantage Indian suppliers enjoyed over US-made modules, which themselves rely on imported cells. Final duty rates are expected in July 2026. Until then, trade flows may remain volatile. Waree Energies, Vikram Solar, Premier Energies, Mundra Solar Energy and Mundra Solar PV are among major Indian exporters to the US.

"Between April 2023 and Nov 2025, India exported cells and modules worth roughly Rs 34,000 crore to the US," said Sehul Bhatt, director at Crisil Intelligence. Modules from India could become at least 30% more expensive compared with US-made alternatives, rendering them commercially unviable, he added.

Trade research body GTRI said that India exported solar panels worth $1.2 billion to the US, 18% lower than 2024. "At this rate, a $100 panel could land in the US at about $226, making many contracts commercially unviable," it added. Vietnam, Thailand, Malaysia and Cambodia already face heavy countervailing duties

Abhishek Pareek, group head - finance at Waaree Energies, said the matter remains under review and the company does not expect a material impact on its ability to service its US order book. It is expanding local manufacturing in the US and diversifying its supply chain.