Solar power continues to become more affordable worldwide, driven by technological progress and widespread adoption. India’s solar industry, in particular, is finding a significant market in the United States, according to a recent report by PL Capital. The surge in demand comes after the U.S. imposed restrictions on imports linked to Chinese supply chains, positioning India as the primary source for solar modules. Between 2023 and 2025, the U.S. accounted for approximately 97% of India’s solar module exports.
The report highlights dramatic growth in India’s exports: solar module shipments nearly increased ninefold in 2023 and doubled again in 2024, establishing the country as a credible alternative supplier in the global solar market. Cost advantages have played a major role in this trend, as Indian solar modules are priced 19–21% lower than U.S.-manufactured alternatives, making them an attractive option for buyers.
However, competition remains strong from Southeast Asian nations like Vietnam and Malaysia. While India’s share of U.S. solar imports jumped from 3% in 2022 to 11% in 2024, Vietnam continues to dominate with a 36% share. Meanwhile, the U.S. domestic solar industry celebrated a record-breaking year in 2024, adding 50 GW of new capacity, largely supported by government incentives.
Despite these gains, Indian exporters are facing mounting challenges. The U.S. is currently investigating alleged dumping claims against Indian solar products, citing margins of 123%, and has proposed a 50% tariff on imports from India starting in August 2025. This tariff is linked to India’s ongoing oil imports from Russia and signals U.S. efforts to boost its own manufacturing capabilities.
To address both domestic needs and global demand, India is rapidly expanding its solar production. The country’s total power generation capacity grew from 356 GW in 2019 to 475 GW in 2025, with renewable energy projects driving most of this increase. Experts project that renewable energy capacity could reach 430 GW by 2030, with solar power forming the bulk of the expansion. India’s solar module manufacturing capacity is expected to climb to 180 GW by 2030, supported by government policies designed to cement the nation’s position as a global renewable energy leader.
