India's solar PV module exports surged to $2 billion in FY 2024, a 23-fold rise in two years, marking India's shift to a net exporter. The US absorbed 97% of exports, led by Waaree Energies, Adani Solar, and Vikram Solar. Despite concerns about meeting domestic energy targets and scheme requirements, India aims to balance export growth with local sustainability, emphasizing the need to manage solar exports while nurturing the domestic solar sector for self-sufficiency.
In a remarkable turn of events, India's solar photovoltaic (PV) module exports have soared to new heights, reaching an impressive $2 billion in fiscal year 2024, a report reveals. This monumental surge marks a staggering 23-fold increase over just two years, showcasing India's transition from a consumer and importer to a net exporter in the solar energy realm.
The Institute for Energy Economics and Financial Analysis (IEEFA) and JMK Research & Analytics jointly released the report, highlighting the exponential growth in India's PV module exports. The United States emerged as the key destination, absorbing over 97% of these exports, with industry giants like Waaree Energies, Adani Solar, and Vikram Solar leading the charge.
One significant driver behind this surge has been the delayed implementation of the Approved List of Models and Manufacturers, which inadvertently lowered the demand for domestic PV modules. Concurrently, other nations are increasingly eyeing India as a reliable "China Plus One" strategy alternative. Indian manufacturers are eagerly embracing the export market, enticed by the promise of higher profit margins despite logistical costs.
While this export boom paints a promising picture, concerns linger regarding its impact on India's solar projects. The report raises valid points about meeting the nation's energy targets by 2030 and fulfilling the requirements of ambitious government schemes like PM Surya Ghar and PM-Kusum, which mandate the use of locally manufactured solar components.
Jyoti Gulia, co-author and founder of JMK Research, warns about potential disruptions in segments like residential rooftop solar during domestic supply shortages, which could lead to price hikes and project delays. As India gears up to produce 28 GW of PV modules by FY2025, with a substantial portion earmarked for exports, there's a looming risk of falling short in meeting domestic demands to achieve the 2030 renewable energy goals.
Vibhuti Garg, director-South Asia at IEEFA, emphasizes the critical need for India to balance its domestic requirements while solidifying its position as a credible alternative to Chinese PV products. Leveraging its strong foothold in the US market, one of the world's largest solar markets, India must tread carefully to meet both international and local demands.
As India stands on the brink of an energy transition revolution, the report underlines the importance of striking a delicate equilibrium between global exports and domestic sustainability. With solar technology playing a pivotal role, India's journey towards energy self-sufficiency hinges on effectively managing its burgeoning solar exports while nurturing its domestic solar ecosystem.
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