The US department of commerce has launched a formal investigation into imports of solar photovoltaic (PV) cells and modules from India, Indonesia, and Laos. The probe places leading Indian solar manufacturers, including Waaree Energies and Premier Energies, under scrutiny.
Focus on Pricing and Subsidies
The investigation will determine whether solar products imported in 2024 were sold at unfairly low prices or benefited from government subsidies. Both practices, if proven, could qualify as violations of US trade law.
Petition from US Industry Group
The move follows a petition filed on July 17 by the Alliance for American Solar Manufacturing and Trade. The group alleges that the three governments provided financial assistance to solar producers, harming or threatening American manufacturers. The petition calls for the imposition of countervailing duties (CVD) and anti-dumping duties on crystalline silicon PV cells sourced from the three countries.
Wide Net of Companies Named
In its submission, the industry group provided evidence it claims supports the allegations. The commerce department accepted the filing, determining that the petitioner represents the US domestic industry under American trade law. The petitions named 43 Indian companies, 54 Indonesian firms, and 8 Laotian producers or exporters of the targeted solar cells.
Process Ahead: Subsidy Calculations
As part of the CVD process, the commerce department will calculate subsidy rates for individual companies. If the pool of companies proves too large for review, officials will select a smaller group as “mandatory respondents” for detailed examination.
Implications for India’s Solar Export Market
The US remains a critical export destination for Indian solar manufacturers, accounting for over 95% of exports in FY24. As reported by knnindia.co.in, any new tariffs or trade restrictions stemming from the investigation could reshape India’s solar export strategy and create challenges for its rapidly growing renewable energy sector.
