The US Department of Commerce has initiated an investigation into imports of solar photovoltaic (PV) cells and modules from India. The probe will assess if these items, which were imported by the US in 2024, were sold at unfairly low prices or received unfair government subsidies.
Stock market reaction
Shares of major renewable firms such as Waaree Energies and Premier Energies, which are among the major exporters to the US, took a beating on Wednesday, falling up to 5% after reports of the US probe.
The investigation has been started on a petition filed by the Alliance for American Solar Manufacturing and Trade on July 17. Similar probes have also been launched against Indonesia and Laos.
In calendar year 2024, the US imported 54 GW worth of solar modules, of which India exported 4.4 GW, constituting around 8% of the total volumes, Kotak Institutional Equities said in a recent report.
Brokerages such as Kotak have said the probe could hit solar exports to the US. “Any acceleration in short-term demand due to the impact of Big Beautiful Bill (tax credits for IPPs if renewable projects are completed by 2027 or start construction by July 4, 2026, and enter service by 2030) could get impacted due to these investigations,” it said. Solar module capacity in the US has now reached 52 GWdc (gigawatts direct current) approximately; as a result of which, US imports have seen a 42% decline during the first five months, it added.
Industry response and outlook
Companies, however, see no major impact. Though Waaree didn’t comment on the US investigation news on Wednesday, the company management recently denied the allegations and said its pricing practices are transparent and compliant with regulations. “We do not follow any predatory price practices, and therefore, as these investigations go through, we stand in a position of strength,” CEO Amit Paithankar told Reuters in a recent interview.
About 57% of Waaree’s orderbook is exposed to the US. The company said it received 2.23 GW of orders from the US in the last quarter and is expanding its manufacturing footprint in the country to mitigate any impact from potential tariffs.
“If you are local to the US from a manufacturing perspective, anti-dumping duties do not impact you as much,” Paithankar said, adding that Waaree is doubling its US manufacturing capacity to 3.2 GW by the end of the year.
Vinay Rustagi, chief business officer at Premier Energies, said: “Our business is completely insulated from any negative impact since more than 99% of our order book comes from the domestic market, which is seeing strong demand prospects.”
“The US is a large potential market for Indian solar manufacturers and this investigation is not great news for the sector coming on the back of multiple tariffs imposed by the US on Indian imports. But any impact is going to vary from company to company, depending on individual exposure to the US market,” he added.
About 4% of Premier’s revenue in FY25 came from exports to the US.
“India exports small volumes of cells and modules. We do not see much impact on Indian solar industry,” said Gyanesh Chaudhary, chairman and MD of IPO-bound Vikram Solar.
Shares of Waaree and Premier fell 5% and 2.65%, respectively, during intra-day trade on the BSE on Wednesday. Waaree opened at Rs 3,055 apiece, touching an intra-day low of Rs 2,922.65 before closing at Rs 2,942.25, down 4.61% from Tuesday’s close. Opening at Rs 1,027.35, Premier hit an intra-day low of Rs 988.65 before closing at Rs 998.95, which was 1.63% lower.