126% US duty triggers strategic pivot for Gujarat’s solar hubs

Ahmedabad: The US govt's move to impose preliminary countervailing duties of up to 126% on solar cells imported from India prompted strategic recalibration among Gujarat's solar manufacturers. The levies apply to solar cells manufactured in India and not to modules assembled domestically using imported cells. Since several Gujarat-based exporters source cells from low-duty countries and assemble modules locally, the direct hit may be narrower than headline rates suggest.However, with India tightening domestic sourcing norms under ALMM-II and encouraging local cell production, future export exposure could rise. Industry experts say the development underscores the need for market diversification as firms in hubs such as Mundra and Dholera weigh a shift in export strategy.
Abhishek Pareek, group head of finance, Waaree Energies Limited, said, "The company continued ramping up US shipments during 9M FY26 despite the earlier 50% duty, supported by diversified and alternate supply chains developed over the years. The company is further strengthening sourcing, including investments in Oman aimed at securing fully traceable, non-Chinese polysilicon supply.""Waaree is expanding its US manufacturing footprint as part of its long-term localisation strategy. The company currently has an aggregate US module manufacturing capacity of about 2.6GW, including capacity acquired through the Meyer Burger facility, and plans to scale this to around 4.2GW by the end of the current financial year, subject to ramp-up timelines," he said.Interestingly, the development coincides with India tightening domestic sourcing norms under ALMM-II, which mandates the use of domestically manufactured solar cells for certain projects. Analysts say that as Gujarat firms ramp up integrated cell capacities under ALMM-II, exposure to cell-specific US duties could rise unless alternative export markets expand."The PLI scheme helped India scale up manufacturing and lower costs, making solar modules more affordable globally. While the US views it as a distortion, the competitive pricing benefit is undeniable. Since most exports are modules assembled with imported cells, the near-term impact on Gujarat manufacturers may not be as severe," said Jaideep Malaviya, a solar energy consultant. Meanwhile, he also added that India should accelerate trade engagement with the European Union to reduce over-dependence on the US market. Kunj Shah, chairman of the energy committee of the Gujarat Chamber of Commerce and Industry (GCCI), said, "The latest duty will impact the exports of domestically manufactured cells. With constant changes in the duty structure of the US, many manufacturers are now diversifying their export markets. A large number of countries are adopting solar, and therefore, there are vast opportunities for our manufacturers to start exports to other countries."