India’s solar photovoltaic (PV) module exports have seen a remarkable surge, increasing nearly 23-fold from FY22 to FY24, according to a report by the Institute for Energy Economics and Financial Analysis (IEEFA) and JMK Research & Analytics. This marks a significant shift for India, which has traditionally been a consumer and importer of solar modules, now establishing itself as a global exporter.
In fiscal year 2024 alone, India’s solar module exports reached approximately $2 billion, with the United States emerging as the largest destination, accounting for over 97% of these exports. Three major Indian companies—Waaree Energies, Adani Solar, and Vikram Solar—dominated the export market, driving India’s rapid growth as a solar supplier.
Factors Behind the Export Boom
The report attributes this export increase to a combination of global and domestic factors. Many countries have adopted a “China Plus One” strategy, diversifying their supply chains and turning to India as an alternative solar module supplier. Additionally, delays in implementing India’s Approved List of Models and Manufacturers (ALMM) shifted some domestic demand, enabling manufacturers to prioritize higher-margin exports.
Impact on Domestic Solar Projects
While this export growth is encouraging, it raises concerns over India’s ability to meet its domestic renewable energy targets. The country has committed to achieving 500 GW of non-fossil fuel capacity by 2030, with solar energy playing a critical role. However, the report highlights potential challenges due to the higher cost of locally manufactured PV modules, which are around 30% more expensive than imports.
“Residential rooftop solar projects and smaller initiatives may face supply constraints due to the increased export focus,” said Jyoti Gulia, co-author of the report and founder of JMK Research. Programs like PM Surya Ghar and PM-Kusum, which mandate the use of domestically produced modules, could be impacted if production fails to meet both international and local demand.
Future Production Goals and Strategic Balance
India’s annual PV module production is projected to reach 28 GW by FY2025, but with a significant share being directed to exports, the country could experience supply gaps in the domestic market. The report recommends a balanced approach, allowing India to maintain its position as a key solar exporter while securing adequate resources for its ambitious renewable energy goals.
“India’s role in the global solar market is rapidly evolving, but meeting domestic demand is equally crucial to support the country’s energy transition,” said Vibhuti Garg, IEEFA’s director for South Asia.
As India positions itself as a major player in the renewable energy landscape, managing this growth and balancing domestic needs will be essential to achieving long-term sustainability in both local and international markets.
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