Continued Growth Expected in Indian Solar PV Exports to the U.S. Despite the Inflation Reduction Act

Reimagining Solar PV Module Manufacturing and Export Markets

Reimagining Solar PV Module Manufacturing and Export Markets

The Future of Solar PV Module Manufacturing

Establishing solar photovoltaic (PV) module manufacturing capacity in the United States of America (the U.S.) will take two to three years. However, Indian players must also consider exploring other overseas export markets, including Africa and South America, once their domestic manufacturing develops.

Rising Exports to the U.S.

A joint report by the Institute for Energy Economics and Financial Analysis (IEEFA) and JMK Research & Analytics reveals that India’s solar PV module exports to the U.S. are expected to continue rising for the next couple of years. However, they will stagnate from 2025 and decline from 2027.

Global PV Demand and Market Competition

“With annual global solar installations forecast to reach at least 1 terawatt (TW) by 2030, it is clear that there will be no dearth of PV demand in the future. Thus, Indian manufacturers must focus equally on domestic and international markets. Companies producing Indian PV products will also need to compete in global markets with other large PV manufacturing countries in terms of quality and scale,” says Vibhuti Garg, Director, South Asia, IEEFA.

Export Opportunities and New Markets

The report highlights that PV module exports from India to the U.S. have seen exponential growth in fiscal year (FY) 2023, increasing 16 times in value compared to FY2022. However, with the decline in exports to the U.S. expected after 2027, Indian companies should consider exploring the African and South American markets to maintain export momentum.

The Rise of Green Hydrogen

“By FY2027, the global transition to green hydrogen will create a huge demand for solar PV panels. This will also open up a considerable market for PV manufacturers for their products,” adds Jyoti Gulia, Founder, JMK Research.

The Impact of Inflation Reduction Act (IRA) and Green Deal

Based on public announcements, the report assesses that the IRA will help add 50 gigawatts (GW) of module manufacturing capacity in the U.S., while the Green Deal will help add 31GW of module manufacturing capacity in the European Union (EU).

Export Opportunities for Indian Companies

“Manufacturing upstream components will be more challenging than making modules due to their complex and expensive production process. As a result, the IRA also opens up export opportunities for Indian companies producing upstream components. Indian companies have also had a headstart of at least one year compared to companies setting up facilities in the U.S. because of the capacities under the Production Linked Incentive (PLI-l) tranche already awarded in November 2021,” says Prabhakar Sharma, Consultant, JMK Research.

Setting Up Manufacturing Lines

The report reveals that several Indian manufacturers are planning to set up module lines in the U.S. and cell or ingot/wafer lines in India.

The Influence of the IRA

The success of the IRA will influence the future PV manufacturing policy design by Indian regulators.

The Importance of the U.S. Market

“The U.S. has traditionally been the largest export destination for Indian PV products. Therefore, after 2027, Indian companies will need to explore the African and South American markets for maintaining the momentum in exports,” says Jyoti Gulia, Founder, JMK Research.

Read the Full Report

New Paradigms of Global Solar Supply Chains

Contact Information

Media contact: Prionka Jha ([email protected]) Ph: +91 9818884854

Author contacts: Vibhuti Garg ([email protected]); Jyoti Gulia ([email protected]); Prabhakar Sharma ([email protected])


The Institute for Energy Economics and Financial Analysis (IEEFA) examines issues related to energy markets, trends, and policies. The Institute’s mission is to accelerate the transition to a diverse, sustainable, and profitable energy economy. (

About JMK Research

JMK Research & Analytics provides research and advisory services to Indian and international clients across renewables, electric mobility, and the battery storage market.

Read More of this Story at – 2023-10-30 03:26:16

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