Amid tariff war with China, Indian solar equipment makers hope to partner with the U.S.

In his latest volte-face, US President Donald Trump has announced exempting solar cells (in addition to smartphones, computers, semiconductors and certain electronics parts) from the 125% reciprocal tariffs on China. However, the decision is unlikely to have a severe impact on Indian solar module exporters to the US, at least for the next few years, say industry experts. They cite that the US, which currently lacks a large solar equipment manufacturing ecosystem, will have to be dependent on solar cells and module imports for at least 2-3 years, from countries like India and other Asian countries.

In 2024, the US solar industry installed nearly 50 gigawatts (GW) of capacity, a 21% increase from 2023 and the highest ever in the last two decades. Now its solar capacity stands at 237.5 GW, according to the Solar Energy Industries Association (SEIA), USA. The value of the US solar market in 2024 was $70.4 billion and is projected to grow to 739 GW by 2035, with average annual capacity additions of more than 45 GW, says SEIA.