Indian Solar Panel Exports Plummet in September Amidst US Tariffs

As per Reuters, India’s overseas sales of solar modules dropped sharply in September. Government data shows exports worth about $80 million, falling from $134 million in August. This marks the lowest monthly shipment value so far this year. Earlier in 2025, manufacturers had seen a steady rise in demand from buyers in the United States. 

US Import Barriers Slow Shipments 

The United States had been taking over 90% of India’s solar module exports as developers there increasingly avoided Chinese panels. Imports from India, however, now face a 50% tariff, introduced during the Trump presidency. US authorities have also tightened checks to determine whether products containing Chinese parts are being shipped through India, which has slowed movement of goods. 

Rising Capacity Meets Limited Buyers 

As per ICRA, India’s manufacturing capacity has continued to expand despite lower export orders. Approved capacity stands at around 110 gigawatts (GW) and may reach 165 GW by March 2027. The fall in exports means more modules are staying within India, adding to a market already unable to absorb all available supply. 

Concern Over Surplus in Local Market 

Industry groups warn that a growing pile of unsold modules could build up. To stay aligned with renewable targets for 2030, India needs 44-45 GW of solar installations a year. Current installation rates remain below this level, causing concern that excess stock could lead to lower prices and stalled projects, particularly for smaller, module-only factories. 

Some manufacturers are changing future plans to avoid adding too much module capacity. Firms are increasingly moving towards other parts of the production chain, such as cells, wafers and ingots.  

Read More: Apple Restructures Global Sales Operations, Cuts Roles Despite $140 Billion Revenue Outlook! 

Conclusion 

With US demand weakening, India’s solar output is being redirected at home. Companies are adjusting their plans by investing beyond modules to avoid future surplus. 

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