India’s exports of solar photovoltaic (PV) products have surged 23-fold, reaching $2 billion from FY22 to FY24, as the country rapidly scales up its export capacity. This remarkable growth positions India to become a net exporter of solar products, even while it targets substantial solar energy capacity for domestic use.
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.
India’s solar module production is expected to reach 28 GW by FY25 and 35 GW by FY26, but exports may leave only 21 GW and 25 GW, respectively, for domestic use—below the 30 GW needed annually for India’s 2030 targets. This shortfall could raise India’s solar import bill, projected to jump from $7 billion to $30 billion annually by 2030, largely due to imports from China.
Although India’s Production Linked Incentive (PLI) scheme supports local manufacturing, the sector remains heavily reliant on imported inputs, with value addition from assembly limited to 15%. Only a few Indian companies produce solar cells from imported polysilicon or wafers, which could add 30-40% local value, according to Global Trade Research Initiative (GTRI).
With solar energy integral to India’s energy transition, experts emphasize the need to balance export growth with meeting domestic demand to further India’s renewable energy goals and reduce reliance on Chinese PV products.
