India has emerged as a major player in the global solar photovoltaic (PV) market, driven by its abundant sunlight and commitment to renewable energy. The country’s growth in solar exports is tied to two key Harmonized System of Nomenclature (HSN) codes: 85414200, which covers unassembled photovoltaic cells, and 85414300, referring to cells within finished solar panels. These codes play a crucial role in understanding the landscape of India’s solar exports, as the country aims to become a global leader in solar technology.
In 2024, India recorded a significant rise in solar module exports, with the United States emerging as the largest buyer. However, a critical challenge persists: while India has excelled in manufacturing solar modules, its domestic production of solar cells remains limited and less competitive. To address this, the Indian government implemented the Approved List of Models and Manufacturers (ALMM) policy on April 1, 2024. This policy aims to prioritize locally-made solar panels for government projects and is set to include solar cells by April 2026.
The impact of ALMM has been immediate. In September 2024, solar module exports reached ₹37,807.25 lakh. Over the first nine months of the year, total solar PV exports exceeded ₹11,14,761.48 lakh, with solar modules accounting for ₹10,92,759.72 lakh and solar cells contributing ₹22,001.76 lakh. The policy has encouraged local manufacturers to increase production, but concerns remain among solar project developers about potential price increases due to limited supply.
Globally, the solar market is undergoing significant changes. Several countries have imposed duties on Chinese solar modules, creating opportunities for Indian manufacturers. This shift in trade dynamics, coupled with rising global demand for solar panels, has opened new avenues for India to expand its exports. However, China’s dominance in solar manufacturing, supported by its ability to produce solar cells and modules at lower costs, remains a challenge for Indian exporters.
Recent developments in China may further impact the global market. The Chinese government has announced a cut in solar subsidies, which is expected to reduce domestic production and create additional export opportunities for Indian companies. These changes could help Indian manufacturers increase their market share in key regions like the U.S. and Europe.
The U.S. has also introduced policies to curb imports of Chinese solar products and promote domestic manufacturing. This presents a chance for Indian companies to capture a larger share of the American market. Additionally, European countries are ramping up their renewable energy efforts, increasing demand for solar panels and offering further opportunities for India.
Despite competition from China, India’s strong manufacturing capabilities and supportive government policies position it well for future growth. By capitalizing on these opportunities, India can expand its role in the global solar market, contributing to sustainable development and economic progress on an international scale.
