US solar duties to have negative impact on export-focused manufacturers: Crisil

Sehul Bhatt, Director, Crisil Intelligence said the preliminary countervailing duties announced by the United States Commerce Department on solar cells and modules imports from India will have a negative impact on export-focused manufacturers.

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The US has imposed preliminary countervailing duties of 126 per cent on imports from India.

“India exported cells and modules worth Rs 340 billion to the US between April 2023 and November 2025. This was supported by lower cost of Indian modules compared with those made in the US, both using imported cells – an advantage the duties will erode,” Bhatt said.

Three factors are at play here. First, the US accounts for more than 95 per cent of India’s solar cell and module exports, as seen over the past three quarters, he said.

“Second, modules imported from India will now become expensive by at least 30 per cent compared with US made ones (imported cells) and, thereby, unviable from a cost perspective,” Bhatt said.

Third, the announcement comes at a time when Indian players have planned healthy capacity expansion over the next three years. Given the tariff uncertainty over the past year or so, a few Indian companies have strategised expansion outside India, which cushions them from this increased duty. Overall, we believe the duties will create volatile trade patterns for exports from India till final determinations of the rates, scheduled in July 2026, forcing the companies to navigate limited market opportunities amid supply addition, he added.

Listed Indian players Waaree Energies and Premier Energies said they don’t see adverse impact from the development.

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