Delhi- This marks significant progress in India moving from a net importer of solar products to a net exporter, according to a report by the Institute for Energy Economics and Financial Analysis (IEEFA) and JMK Research and Analytics.
One of the factors listed for the increase in exports is that other countries are considering India as a viable option for their “China Plus One” strategy and domestic PV. Manufacturers seek to sell their products abroad at higher premiums.
In terms of markets, the United States has emerged as a major market for India’s solar PV exports. More than 97 per cent of India’s solar PV exports went to the US in both FY2023 and FY2024, the report said. Report contributing author Vibhuti Garg, South Asia Director, IEEFA, said: “Focusing on the US market can benefit India’s PV manufacturing ecosystem. “Investing in the US market will help Indian PV manufacturers achieve economies of scale, thereby improving the quality and competitiveness of their products.” “But, to establish India as a true global manufacturing hub in the long term, Indian PV manufacturers must focus on backward integration. “This will help India maintain its penetration in existing markets, while unlocking untapped markets like Europe, Africa, Latin America, etc.”
Additionally, the report also says that it is important for Indian PV manufacturers to balance the needs of the growing export market with domestic availability. Jyoti Gulia, founder of JMK Research, said: “During domestic supply shortages, some distributed renewable energy segments, such as residential rooftop solar, may be affected due to their smaller orders. This can make it difficult for developers to get enough supply to run their projects. “The gap between supply and demand also affects solar module prices, which is an important factor for the price-sensitive residential rooftop solar segment.”
