U.S. trade action deals blow to Indian solar makers

By Sethuraman N R

NEW DELHI, Feb 25 (Reuters) - India's plans to strengthen its position in the U.S. solar market face a setback after Washington moved to impose steep countervailing duties on solar cells and panels shipped from some Asian hubs, analysts and industry representatives said.

The U.S. Commerce Department on Tuesday determined that manufacturers operating in India, Indonesia and Laos benefited from wide-ranging state support that skewed competition in the world's most attractive clean‑energy markets.

Indian exporters to the U.S. face duties of 126% just as New Delhi courts investment from solar companies and positions itself as an alternative to China.

Shares of India's top solar panel maker, Waaree Energies WAAN.NS, tanked 10%, while Premier Energies PEME.NS and Vikram Solar VIKO.NS fell 5% and 4%, respectively as of 0449 GMT on Wednesday.

"The preliminary U.S. countervailing duties are a major setback for Indian solar manufacturers that relied heavily on exports to the U.S. market," said Rajan Kalsotra, Senior Consultant at EUPD Research.

Analysts warn that the lack of viable export markets could drive Indian module makers to push their stocks into the domestic market, leading to oversupply.

India has expanded module manufacturing capacity beyond 160 gigawatt (GW) as of January 2026, with additional capacity planned, while near-term domestic demand is expected to remain around 40 to 45 GW annually, according to EUPD.

"With the U.S. accounting for the overwhelming share of exports, producers now face a dual dilemma of excess capacity and restricted market access," Kalsotra said.

The ruling is only the first step in a broader trade action initiated last year by a group of American solar manufacturers.

A separate decision, due next month, will determine whether exporters in the three countries also slashed prices below production cost - a finding that could lead to another round of anti‑dumping penalties.