Solar Exports See Striking Surge: How India Is Leading the Way in Solar Manufacturing

India's solar exports have seen a striking surge in recent years, with the country becoming a major player in the global solar market. In 2022, India's solar exports jumped by 321% year-over-year to $561 million, as per Export and Import Data. This makes India the world's fourth-largest exporter of solar cells and modules, behind China, Malaysia, and Vietnam. 

There are a number of factors that have contributed to India's solar export boom. One factor is the government's ambitious renewable energy targets. India has set a goal of installing 100 GW of solar power by 2022 and 450 GW by 2030. This has led to a surge in domestic solar manufacturing, which has created a surplus of solar cells and modules that can be exported.

Another factor is the decline in solar module prices. Solar module prices have fallen by more than 80% in the past decade, making solar power more affordable and competitive with other forms of energy. This has made India a more attractive destination for solar manufacturing, as companies can produce solar modules at a lower cost.

The United States is the largest market for India's solar exports. Based on India Export Data, the US accounted for 95% of India's solar exports in 2022. This is due in part to the US government's tariffs on solar imports from China. The tariffs have made it more expensive for US companies to buy solar modules from China, and have led them to look for alternative suppliers, such as India.

India's solar export boom is a sign of the country's growing dominance in the global solar market. The government's renewable energy targets, the decline in solar module prices, and the US-China trade war have all contributed to this growth. As India continues to invest in solar power, it is likely that its solar exports will continue to grow in the years to come.

How is India leading the Way in Solar Manufacturing?

India is leading the way in solar manufacturing for a number of reasons. These include:

Ambitious renewable energy targets: India has set a goal of installing 100 GW of solar power by 2022 and 450 GW by 2030. This has led to a surge in domestic solar manufacturing, which has created a surplus of solar cells and modules that can be exported.

Declining solar module prices: Solar module prices have fallen by more than 80% in the past decade, making solar power more affordable and competitive with other forms of energy. This has made India a more attractive destination for solar manufacturing, as companies can produce solar modules at a lower cost.

Supportive government policies: The Indian government has implemented a number of policies to support the solar industry, such as tax breaks and subsidies. These policies have made it more attractive for companies to invest in solar manufacturing in India.

Abundant solar resources: India receives an average of 300 sunny days per year, making it an ideal location for solar power generation. This means that solar manufacturers in India can produce solar modules with high efficiency and output.

Skilled workforce: India has a large and skilled workforce that is well-suited for solar manufacturing. This is due to the country's strong engineering and technical education systems.

As a result of these factors, India has become the world's fourth-largest exporter of solar cells and modules. The country is well-positioned to continue to grow its solar manufacturing industry in the years to come.

Conclusion

In conclusion, the rapid surge in solar exports presents Indian PV manufacturers with an exciting yet challenging landscape. While the surge highlights the remarkable growth of the Indian solar sector and its global competitiveness, it also underscores the need for manufacturers to adapt, innovate, and evolve to stay ahead. Navigating through the challenges of heightened competition, robust supply chain management, and maintaining impeccable quality standards will be instrumental in ensuring the continued success of India's solar export journey. Also, if you need any type of guidance related to Export and import data or India Export Data, connect with Seair Exim Solutions to explore global trade insights. Join today to book a free live demo!