India has become a significant 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 largely linked to two key Harmonized System of Nomenclature (HSN) codes: 85414200, which covers unassembled photovoltaic cells, and 85414300, which includes cells within finished solar panels. These codes are important for understanding the landscape of India’s solar exports as the country aims to lead in solar technology globally.
In 2024, India saw a notable increase in solar module exports, with the United States emerging as the largest buyer. However, India still faces a significant challenge. While the country has become proficient in manufacturing solar modules, its domestic production of solar cells remains limited and less competitive. To address this, the Indian government introduced the Approved List of Models and Manufacturers (ALMM) policy on April 1, 2024. This policy focuses on prioritizing locally-made solar panels for government projects and is expected to include solar cells by June 2026.
The introduction of ALMM has already shown its impact. By October 2024, solar module exports had reached ₹49,970.13 lakh. Over the first ten months of the year, India’s total solar PV exports surpassed ₹11,69,274.98 lakh, with solar modules making up ₹11,42,729.85 lakh and solar cells accounting for ₹26,545.13 lakh. This policy has encouraged local manufacturers to ramp up their production, although there are concerns among solar project developers about possible price hikes due to the limited supply of domestically produced solar cells.
On the global front, the solar market is undergoing significant changes. Several countries have imposed duties on Chinese solar modules, which has created opportunities for Indian manufacturers. This shift in global trade dynamics, along with the rising demand for solar panels worldwide, has provided India with new avenues to expand its solar exports. However, China’s dominance in solar manufacturing remains a challenge for Indian exporters, given the country’s ability to produce solar cells and modules at lower costs.
Recent developments in China could further affect the global solar market. The Chinese government has announced a cut in solar subsidies, which is expected to reduce domestic production. This could open up additional export opportunities for Indian manufacturers, allowing them to increase their market share in regions such as the U.S. and Europe.
The United States has also introduced policies aimed at curbing imports of Chinese solar products and promoting domestic manufacturing. This presents an opportunity for Indian companies to capture a larger share of the U.S. market. Additionally, European countries are stepping up their renewable energy efforts, boosting the demand for solar panels and offering further prospects for India.
Despite stiff competition from China, India’s growing manufacturing capabilities and supportive government policies position the country for future growth in the global solar market. By seizing these opportunities, India has the potential to expand its role in the solar industry, contributing to both sustainable development and economic progress on a global scale.
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