India’s solar PV export value reaches $2b in FY 2024

The US was the country’s major market.

India is making progress towards becoming a net exporter of solar photovoltaic (PV) products, with its export value reaching $2b in fiscal year (FY) 2024, rising 23 times from its level in FY 2022, according to the Institute for Energy Economics and Financial Analysis (IEEFA) and JMK Research & Analytics.

In their latest report, the experts said one of the factors that caused this was the reduced demand for domestic PV modules following the delayed implementation of the Approved List of Models and Manufacturers. Other countries also looked at India as an option for their “China Plus One” strategy, whilst domestic PV manufacturers looked to sell their products at a higher premium abroad.

The US emerged as the South Asian country’s key market, with over 97% of Indian solar PV exports going to Washington in both FY 2023 and FY 2024.

“The exposure to the US market will enable Indian PV manufacturers to attain economies of scale, ultimately enhancing their product quality and competitiveness,” said the report’s contributing author, Vibhuti Garg, director – South Asia, IEEFA.

If India wants to establish itself as a global manufacturer in the long run, domestic manufacturers should focus on upstream backward integration. It is also important for PV manufacturers to balance the needs of the growing export market with domestic availability.

The report estimates that annual module production by Indian solar PV manufacturers in FY 2025 and FY 2026 will be 28 gigawatts (GW) and 35GW, respectively.

“After accounting for exports, the resultant supply by Indian PV manufacturers in the next two years will be only 21 GW and 25 GW, respectively, which is less than the requirement of approximately 30 GW per annum to meet India’s 2030 renewable energy target,” said the report’s co-author, Prabhakar Sharma, senior consultant, JMK Research.