In an effort to diversify its export footprint, Vikram Solar, one of India’s leading solar module manufacturers, aims to enter key markets such as the European Union, Australia and the Middle East & North Africa (MENA) by the next financial year. At present, export orders make up around 15% of the company’s total order book, with the United States being its only active overseas market.
Shifting US Policy Landscape Drives Diversification
According to Chairman and Managing Director Gyanesh Chaudhary, major policy resets in the US -including the introduction of the “One Big Beautiful Bill Act” and the phase-out of tax credits – have slowed solar deployment in the country. He noted that residential solar installations may drop by 20–30% in 2026, while long-term forecasts for utility-scale projects have also been revised downward.
Rising Tariffs and Changing Incentives Impact Indian Exporters
Although the US relies heavily on solar module imports, new domestic incentives are likely to boost local manufacturing. Meanwhile, Indian exporters currently face a 50% tariff, driven largely by additional duties linked to Russian oil imports. Despite these challenges, US customers continue to show strong faith in Vikram Solar. Chaudhary added that the company is exploring alternative sourcing routes—such as the Philippines, Turkey and North Africa—to secure non-Chinese solar cells, which are increasingly important for US-bound shipments.
Targeting New Growth Markets Worldwide
To strengthen its global presence, Vikram Solar is doubling down on new regions, including the EU, Australia and MENA. “Our objective is to be present in all major global solar markets,” Chaudhary said. The company’s international team is actively building partnerships and exploring opportunities that it aims to pursue in the next financial year.
Major Capacity Expansion Underway in Tamil Nadu
Vikram Solar recently commissioned its 5 GW advanced solar module manufacturing facility at Vallam, Tamil Nadu. The company now plans to commission another 6 GW module capacity at its upcoming Gangaikondan facility in the fourth quarter of this fiscal. In addition, the company expects to bring online 12 GW of solar cell manufacturing capacity at the same location by the end of the next financial year. The total capex for the Gangaikondan project is approximately ₹6,200 crore.
GST Cut Boosts Retail Demand for Solar Modules
The company is also witnessing strong growth in the retail segment, following the reduction of GST on solar modules from 12% to 5%, which has accelerated solar adoption across India. As reported by thehindubusinessline.com, Chaudhary highlighted that domestic demand remains robust, with India expected to deploy 42–45 GW of solar capacity this year—almost double the 25 GW installed in FY25.
