India Becomes Top Solar Supplier to US, Exporting 97% of Modules Between FY23-25

India’s solar module exports between FY23 and FY25 were overwhelmingly directed to the United States, which absorbed nearly 97% of total shipments, according to a PL Capital report.  

The shift followed tighter US restrictions on imports linked to Chinese supply chains, leading buyers to look for alternative sources. 

Sharp Increase in Shipments 

Export volumes rose sharply during the period. India’s solar module exports increased almost nine times in 2023 and doubled again in 2024.  

This marked a change from earlier years when overseas sales were limited and spread across multiple markets rather than concentrated in one destination. 

Cost Difference Influences Sourcing 

Price levels played a role in shaping trade flows. Solar modules manufactured in India are estimated to be 19% to 21% cheaper than those produced in the US.  

The cost difference made Indian supplies viable for US buyers, particularly for utility-scale projects with tight cost structures. 

Southeast Asia Remains Dominant 

Despite higher exports, India trails some Southeast Asian suppliers in the US market. Vietnam remained the largest exporter to the US in 2024, accounting for around 36% of imports.  

India’s share increased to about 11% in 2024, compared with 3% in 2022. Malaysia and other regional exporters also retained market share. 

Trade Actions Raise Uncertainty 

Indian exporters are facing greater trade scrutiny. US authorities are examining alleged dumping margins of up to 123% for Indian solar products. Separately, a 50% tariff on certain Indian imports is scheduled to take effect from August 2025, including a levy linked to India’s oil imports from Russia. 

Capacity Additions in India and the US 

The US solar sector added about 50 GW of new capacity in 2024, supported by federal and state incentives. In India, total power generation capacity rose from 356 GW in 2019 to around 475 GW in 2025, driven largely by renewable additions. Solar manufacturing capacity in India is projected to reach about 180 GW by 2030. 

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Conclusion 

India’s solar module exports to the US expanded rapidly between FY23 and FY25 due to changes in sourcing patterns, pricing differences, and rising manufacturing capacity, while exposure to trade-related measures has increased. 

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