India’s solar exports soar to US$2B in two years, IEEFA reports

INDIA – India’s solar photovoltaic (PV) product exports surged 23-fold to reach US$2 billion in the fiscal year 2024 from fiscal year 2022.

According to a report by the Institute for Energy Economics and Financial Analysis (IEEFA) and JMK Research & Analytics, this marks a significant milestone in the country’s transition from a net importer to a net exporter of solar products.

Key factors behind this rapid growth include the increasing adoption of India as a “China Plus One” sourcing option and domestic manufacturers seeking higher premiums in foreign markets.

According to the report, the United States has emerged as India’s primary export market, receiving more than 97% of Indian solar PV exports in fiscal years 2023 and 2024.

“Focusing on the US market can strengthen the Indian PV manufacturing ecosystem,” said Vibhuti Garg, Director for South Asia at IEEFA and contributing author of the report.

“Exposure to the US market enables Indian PV manufacturers to achieve economies of scale, ultimately enhancing product quality and competitiveness. However, manufacturers must focus on backwards integration for India to establish itself as a global manufacturing hub in the long term.

“This approach will help India maintain its position in current markets while unlocking new opportunities in regions like Europe, Africa, and Latin America.”

The report also underscored the need for Indian PV manufacturers to balance export growth with domestic availability.

According to Jyoti Gulia, Founder of JMK Research, domestic supply constraints can impact smaller sectors like residential rooftop solar, which often struggles with sourcing due to smaller order sizes.

“This supply-demand gap can increase solar module prices, which affects price-sensitive segments, particularly in the residential rooftop sector,” she noted.

Projections for FY2025 and FY2026 estimate that Indian solar PV manufacturers will produce 28 gigawatts (GW) and 35GW of modules, respectively.

After accounting for exports, the domestic supply is projected to be 21GW and 25GW for the next two years, falling short of the 30GW per year needed to meet India’s 2030 renewable energy target, explained Prabhakar Sharma, Senior Consultant at JMK Research.

The report highlights that a multifaceted approach—balancing export growth with domestic needs—would best support India’s climate goals.

“India is on the verge of an energy transition revolution, and solar technology is a critical enabler,” Garg added.

“Meeting domestic demand while positioning India as a strong alternative to Chinese PV products will significantly contribute to achieving the country’s renewable energy ambitions.”

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