Indian Solar Firms Reroute Supply Chains Amid US Tariffs
POWER & RENEWABLE ENERGY

Indian Solar Firms Reroute Supply Chains Amid US Tariffs

Indian solar manufacturers are restructuring their supply chains to retain access to the profitable United States market and offset the impact of steep new tariffs, company executives said.

The development follows U.S. President Donald Trump’s decision to impose tariffs of up to 50 per cent on most exports from India, among the highest levies faced by any U.S. trading partner. The duties came into effect on 27 August.

In a post-earnings call on Friday, Vikram Solar, which derives around 15 per cent of its current order book from the U.S. market, said it was adapting to the new tariff structure by sourcing solar cells from countries with lower duties. Under U.S. trade policy, tariffs on solar modules are determined by the country in which the solar cell’s PN junction — the component responsible for generating electricity — is formed.

This means that even if a solar module is assembled in India, the U.S. applies tariffs based on the origin of the cell used inside. “We are exploring alternative supply chains from countries with significant cell capacities that face lower levies than India,” said Rinal Shah, an executive at Vikram Solar.

The company did not disclose whether the new tariffs had impacted its September-quarter earnings but expressed confidence in continuing U.S. deliveries despite the trade challenges.

Waaree Energies, India’s largest solar module manufacturer and one of the top exporters to the U.S., confirmed that it was not using domestically produced solar cells for American shipments to avoid higher tariffs. The company is currently under investigation by U.S. authorities, who allege it circumvented tariffs on Chinese-made cells and panels by relabelling them as “Made in India” — an accusation Waaree has firmly denied.

Waaree CEO Amit Paithankar said during an analyst call that the company’s supply chain for U.S. exports is “completely China-free” and fully compliant with trade regulations. “We have also configured it in such a way that the tariff problems associated with exports are minimised,” he said.

Waaree added that its U.S. orders remain unaffected so far by the tariffs and the ongoing trade probe, as the company continues to adjust sourcing and logistics to safeguard market access.

Indian solar manufacturers are restructuring their supply chains to retain access to the profitable United States market and offset the impact of steep new tariffs, company executives said. The development follows U.S. President Donald Trump’s decision to impose tariffs of up to 50 per cent on most exports from India, among the highest levies faced by any U.S. trading partner. The duties came into effect on 27 August. In a post-earnings call on Friday, Vikram Solar, which derives around 15 per cent of its current order book from the U.S. market, said it was adapting to the new tariff structure by sourcing solar cells from countries with lower duties. Under U.S. trade policy, tariffs on solar modules are determined by the country in which the solar cell’s PN junction — the component responsible for generating electricity — is formed. This means that even if a solar module is assembled in India, the U.S. applies tariffs based on the origin of the cell used inside. “We are exploring alternative supply chains from countries with significant cell capacities that face lower levies than India,” said Rinal Shah, an executive at Vikram Solar. The company did not disclose whether the new tariffs had impacted its September-quarter earnings but expressed confidence in continuing U.S. deliveries despite the trade challenges. Waaree Energies, India’s largest solar module manufacturer and one of the top exporters to the U.S., confirmed that it was not using domestically produced solar cells for American shipments to avoid higher tariffs. The company is currently under investigation by U.S. authorities, who allege it circumvented tariffs on Chinese-made cells and panels by relabelling them as “Made in India” — an accusation Waaree has firmly denied. Waaree CEO Amit Paithankar said during an analyst call that the company’s supply chain for U.S. exports is “completely China-free” and fully compliant with trade regulations. “We have also configured it in such a way that the tariff problems associated with exports are minimised,” he said. Waaree added that its U.S. orders remain unaffected so far by the tariffs and the ongoing trade probe, as the company continues to adjust sourcing and logistics to safeguard market access.

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