India’s solar module exports surged 20.5% year-on-year to $668 million during the first four months of the current fiscal, while shipment volumes rose 30% to 4.6 million units. Increased exports to the United States, the country’s largest solar module market, primarily drove the growth.
US Tax Credit Deadlines Accelerate Shipments
Industry experts attribute the surge to multiple factors, including the accelerated deadline for projects availing production and investment tax credits (ITC) in the US. Amendments to US regulations required that projects “break ground” within 60 days to qualify for these clean energy incentives. This led to exporters expediting shipments to meet eligibility requirements.
“Whatever tax benefits they were getting under the production and investment tax credits, the deadline was preponed, which may have contributed to the rise,” explained Vikram V, Vice-President and Co-Group Head – Corporate Ratings, ICRA Ltd. The anticipation of a 50% tariff on solar modules starting August 27 also contributed to the increase, prompting exporters to accelerate shipments before the tariff came into effect.
Other International Markets Show Mixed Trends
While the US led the growth, India moderately increased exports to the UAE, Kenya, Hungary, and Iran. Conversely, it reduced exports to Singapore and Canada over the same period.
Module Export Trends
The export growth comes after a decline in FY25, when India’s solar module shipments fell to 7.5 million units from 11.3 million units in FY24. The current surge reflects a combination of global policy incentives, strategic timing by exporters, and ongoing demand in key international markets.
Outlook for Solar Module Exports
Etenergyworld.com reports that supportive policies in major markets like the US and continued global demand for renewable energy are likely to keep India’s solar module exports growing, although market fluctuations and tariff policies may affect future trends.
