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), opens new tab and Vikram Solar (VIKO.NS), opens new tab 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.
