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Shares of Indian solar equipment makers fell up to 15% on Wednesday after the United States announced duty on solar imports from India and a couple of other Asian countries.
Exports make up 16% of Vikram Solar’s upcoming orders, while Waaree’s US shipments account for 65% of its order book, Jefferies analysts said. Premier Energies’ order book is entirely domestic.
Waaree Energies told Reuters that it expected no material impact due to the solar tariffs. The company has an installed manufacturing capacity of 2.6 MW in the US which is expected to rise to 4.2 GW by the end of FY26, Additionally, it has a diversified supply chain that includes a planned Oman facility.
Vikram Solar said the duties would have a limited impact as it sourced cells for US customers outside India. Premier Energies was unavailable for comment.
US President Donald Trump has imposed preliminary duty of 126% on solar imports from India, a move that threatens to derail the India-US trade deal.
On Tuesday, the US Commerce Department said it will impose countervailing duties on solar cells and panels imported from companies in India, Indonesia, and Laos, aiming to offset subsidies that support manufacturers in those countries. New Delhi — according to Washington DC — has unfairly subsidised its domestic manufacturing, allowing exporters to undercut American-made products.
To be sure, analysts are divided on the impact of US solar tariffs on India.
A lack of viable export markets will force Indian solar PV module makers to push their stocks into the domestic market, resulting in an oversupply. As of January 2026, India had an installed solar-module manufacturing capacity of more than 160 GW, as against domestic demand of 40-45 GW. India’s solar exports to the US reached $792.6 million in 2024, a nine-fold increase from 2022 levels.
“The preliminary US countervailing duties are a major setback for Indian solar manufacturers that relied heavily on exports to the US market,” Rajan Kalsotra, Senior Consultant at EUPD Research, told Reuters.
“With the US accounting for the overwhelming share of exports, producers now face a dual dilemma of excess capacity and restricted market access.”
Still, others see a limited impact.
“The manufacturers have been anticipating US tariffs on cells and modules from the Southeast Asia and India, even before the investigation was first launched in August 2025,” Fei Chen, solar research analyst at consultancy Rystad Energy, told Reuters.
The ruling is only the first step in a broader trade action initiated last year by a group of American solar manufacturers.
A separate decision, due next month, will determine whether exporters in the three countries also slashed prices below production cost—a finding that could lead to another round of anti‑dumping penalties.
Manufacturing of solar panels in the US has ramped up in recent years, even as Trump’s freeze on project approvals has thrown thousands of megawatts of clean power capacity into limbo.
Higher domestic module manufacturing led to a drop of 56% in the value of US solar panel imports in 2025, with India’s exports falling by nearly half, according to US customs data.

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