India exported around $2bn worth of photovoltaic (PV) modules in fiscal year (FY) 2024, a more than 23-fold increase from FY2022, according to a report by IEEFA and JMK Research.
The United States is the largest destination for Indian PV exports, receiving 97% and 99% of the exports in FY2023 and FY2024, respectively. India also exports PV products to South Africa, Kenya, the UAE, Afghanistan, Nepal, and Bangladesh.
Despite higher logistics costs, Indian manufacturers can earn 40-60% higher profit margins on exports to developed nations like the US compared to domestic sales.
Factors contributing to the export surge include a delay in the implementation of India’s Approved List of Models and Manufacturers in April 2024, and countries seeking alternatives to China through the “China Plus One” strategy.
With the US imposing tariffs on Chinese PV products and considering extending these to Southeast Asia, India has the potential to become a leading PV exporter to the US.
The report suggests that India should balance export and domestic market demands, particularly for segments like residential rooftop solar, to avoid price volatility.
In FY2024, India exported over 5.8 GW of PV modules, a threefold increase from FY2023. Major exporters included Waaree Energies, Adani Solar, and Vikram Solar.
Other companies like Grew Energy and Navitas are also exploring export opportunities. Waaree and Vikram are planning to set up PV manufacturing in the US to benefit from Inflation Reduction Act incentives.
