Solar exporters to re-open talks with US buyers, revive manufacturing plans
By Aishwarya Nair
Indian solar exporters have begun re-engaging with American buyers and reviving plans to set up manufacturing units in the United States following the trade deal announcement, executives told Moneycontrol.
The trade agreement, announced on February 2, brought long-awaited clarity on tariffs, easing pressure on an industry that had been forced to freeze exports due to high tariffs and trade uncertainty.
The agreement, which cuts tariffs on Indian goods to 18 percent from 50 percent, is huge for domestic module manufacturers. The US absorbed nearly 97 percent of India’s solar module exports between 2023 and 2025.
Reviving plans
The deal comes as huge relief for firms such as Adani’s Mundra Solar, Vikram Solar, Waaree Energies and Premier Energies, which are among the leading exporters to the US.
Vikram Solar and Premier Energies had paused their plans to establish a facility in the US amid tariff uncertainty.
With the trade agreement, the details of which are yet to be made public, ending 11 months of uncertainty, companies have hinted at reviving discussions and reassessing their US manufacturing plans.
“For Indian manufacturers and solution providers across solar, energy equipment, advanced materials and power infrastructure, this creates a powerful runway to scale exports, deepen value addition, and integrate more meaningfully into global supply chains,” Vikram Solar chairman and managing director Gyanesh Chaudhary said.
The company had paused US orders amid tariff uncertainty but is now reassessing its export strategy after the deal brought greater policy clarity.
“Our export strategy remains steady, with a clearer and more deliberate emphasis on the US as a priority market. Improved tariff clarity and policy stability now allow us to scale exports with greater confidence, predictability, and long-term visibility,” Chaudhary told Moneycontrol.
The company is seeing increased engagement from US customers, with more active and forward-looking discussions, he said.
The revenue share from American exports plummeted from 61.1 percent in FY24 to 0.96% in FY25.
On the firm’s plan to set up a 3 gigawatt (GW) module facility in Colorado, Chaudhary said, “We continue to evaluate the possibility of a US manufacturing presence, factoring in demand visibility, policy clarity, and long-term commercial viability. At this stage, our priority is to scale efficiently from India while assessing the US manufacturing option in a calibrated and disciplined manner.”
Adani Solar did not immediately respond to a request for a comment.
Hitting refresh
Solex Energy chairman & managing director Chetan Shah said this rationalisation lowers trade barriers, stabilises cost structures, and enables exporters to re-engage with US buyers with greater confidence.
Solar cells and modules maker Premier Energies hailed the deal, saying lower tariffs will allow India-made modules to regain their competitiveness.
“Many companies have been eyeing the US market, and now with the reduction of tariffs, that market opens up again,” Premier chief business officer Vinay Rustagi told Moneycontrol.
The company had reduced its US exposure to less than 1 percent in the last year from an initial 10 percent.
“We will be re-engaging with customers in the US and activating the same discussions. With new capacities coming up, and our capacity going to more than double over the next three months, we will be looking at the export market with a lot of interest,” Rustagi added.
In 2025, the company put on hold its plans to develop a 1 gigawatt (GW) solar cell manufacturing facility in the US after Trump ordered a pause on green policies introduced under the Biden administration.
When asked about the plan, Rustagi said, “We are looking at that now with serious interest. We are still in a feasibility stage and are identifying various sites in the US and redoing all the costing estimates.”
Companies also flagged cost competitiveness for Indian-made solar cells and modules when compared with Chinese producers.
“This change also strengthens the case for supply chains that are open and reliable. It alleviates long-standing concerns about Chinese producers circumventing tariffs and positions India as a credible and dependable alternative manufacturing base that aligns with US trade and industrial objectives,” said Prashant Mathur, CEO of Saatvik Green Energy.
In October, the company announced it would stay away from the US market, which it previously considered promising, saying it was not “worth the risk”.
This article has been republished from The Money Control.com