Altering solar cell supply chains to circumvent US tariffs is not a viable long-term strategy due to cost-effectiveness challenges, said Chetan Shah, Chairman and Managing Director of Solex Energy Limited, reported ANI.
Shah highlighted that India possesses the necessary scale, cost advantage, and supportive ecosystem to become a global hub for solar manufacturing.
“Setting up units outside India to avoid tariffs may work temporarily, but making them cost-effective is a major challenge—whether in the Middle East, Qatar, or Turkey,” Shah explained. “India offers unmatched scale and cost benefits. For instance, in 2019, India’s module manufacturing capacity was six gigawatts. Within just three years under the ALMM scheme, it surged to 120 gigawatts,” he added, responding to moves by solar companies to recalibrate supply chains for continued access to the US market.
Addressing efforts to diversify trade partnerships, Shah said, “Evolving global dynamics have created new opportunities for collaboration between India and Europe. As Indians, we see immense potential. We were innovators once, and now it’s time to reclaim that leadership.”
Solex Energy recently signed a Memorandum of Understanding (MoU) with ISC Konstanz, Germany, to collaborate on advanced research and development and technological innovation in solar cell manufacturing.
Shah underscored that the success of Indian manufacturers will depend on finding the right balance between innovation and affordability.
Commenting on US trade policies, Shah described the tariffs as “temporary,” noting that “the US has no choice—they lack domestic manufacturing.” He added that India stands to gain from the current geopolitical environment, as global consumers increasingly prefer cost-effective products traditionally supplied by China and now by India.
India’s solar sector has grown exponentially over the past decade. Once limited to a few rooftops and desert installations, the country has now surpassed Japan to become the world’s third-largest solar power producer. According to the International Renewable Energy Agency (IRENA), India generated 1,08,494 GWh of solar energy, overtaking Japan’s 96,459 GWh.
As of July 2025, India’s cumulative solar capacity stood at 119.02 GW, comprising 90.99 GW from ground-mounted projects, 19.88 GW from rooftop installations, 3.06 GW from hybrid systems, and 5.09 GW from off-grid setups—demonstrating a diverse and robust renewable energy expansion.
Aligned with its COP26 commitments, India is steadily progressing toward its goal of achieving 500 GW of non-fossil fuel electricity capacity by 2030—a critical milestone in its clean energy transition and climate action strategy.
