New US tariffs on Chinese solar imports could lead to India becoming a major global supplier

US President Joe Biden’s recent decision to increase tariffs on $18 billion worth of imports from China, including solar equipment, is expected to have a significant impact on India’s solar industry. Experts believe that this move will trigger India’s plans to ‘Make in India’ and position itself as a global supplier of solar equipment.

The White House announced that tariffs on various products, such as steel, aluminum, semiconductors, electric vehicles, lithium-ion batteries, and solar cells, will see a significant increase over the next few years. While India is likely to benefit greatly from the solar equipment sector, other sanctioned sectors like lithium-ion batteries and semiconductor manufacturing are still in their early stages in India.

Gyanesh Chaudhary, chairman and managing director of Vikram Solar, one of India’s leading solar equipment makers, sees this as an opportunity for India to emerge as a major player in the global solar market. He believes that India’s industrial base and anti-dumping measures can help the country attract foreign investment and technology transfers.

India has been steadily increasing its solar module and cell manufacturing capacity, with plans to exceed 150 GW and 75 GW respectively by 2026. The US, which is the second-largest solar market globally, heavily relies on imports from China and Southeast Asian nations. With the recent tariffs imposed by the US, India’s solar exports have been on the rise, growing by 227% in 2023.

However, experts warn that India must remain vigilant against potential Chinese dumping and not lose focus on domestic capacity additions while increasing exports to the US. The higher US duties may result in less demand for Chinese modules in the US, potentially easing the supply situation for Indian developers. Overall, the shift in the market presents both opportunities and challenges for India’s solar industry.