The US pulling out of the International Solar Alliance (ISA) is expected to have minimal impact on Indian renewable energy companies due to their growing manufacturing prowess in solar equipment, industry executives and consultants said.
The ISA is a collaborative initiative between India and France, aimed at uniting efforts to combat climate change by implementing solar energy solutions. Conceptualised on the sidelines of COP21 in Paris in 2015, the alliance has grown to include over 100 nations, with more than 90 having completed the formal ratification to become full members.
The US withdrawal from the ISA is part of a broader move that is keeping with President Donald Trump’s views on climate change and renewable energy. The US has also quit 31 UN entities and non-UN inter-governmental organisations.
While companies such as Waaree Energies export to the US, sources close to the company said there won’t be much impact as it is “a diplomatic development and does not directly alter market fundamentals”. “The US continues to grow with strong policy initiatives, decarbonation, and robust utility scale and C&I (commercial & industrial) project pipelines,” a source said. When contacted, the company declined to comment.
Industry executives said growing Indian manufacturing ecosystem will help the country in solar equipment.
“As a country we don’t import (solar equipment) from the US. Our exports also limited. So, it won’t impact us,” said a senior executive of the Tata Group.
He said that except India and China, not many countries are seeing major additions in solar manufacturing capacities and hence the consolidation of China and India will help both Asian nations.
144 GW Capacity as a Strategic Shield
Total solar module manufacturing capacity in the country reached nearly 144 GW as of November 2025, while solar cell manufacturing capacity stood at around 24-25 GW. Tata Power has about 5 GW of cell and module capacity.
“Many power companies are setting up own cell, panel, wafer and ingot plants which is good for our self-reliance,” he said.
A consultant who did not want to be quoted said the manufacturing system is becoming robust after the government issued the Approved List of Models and Manufacturers (ALMM) and the Approved List of Cell Manufacturers (ALCM). These lists by the Ministry of New and Renewable Energy (MNRE) were aimed at ensuring quality, promoting domestic manufacturing, and reducing import dependency.
“Imports of cells and panels have come down from China. Imports of battery systems will continue for some time,” the consultant said.
Tapping Global South and New Market Margins
He said Indian companies will explore international markets which have high margins and lower scale requirement and where China’s presence is minimal. “Indian companies will tap African countries where scale requirement is low,” he said.
Sandeep Agarwal, founder and managing director at Greenzo Energy, said the US move will make the country open up its market for foreign companies to set up factories there.
“China and Mexico won’t be interested in setting up factories due to hostile relations and high-quality requirements. Hence it is a good opportunity for Indian companies,” he said.