India’s solar industry is undergoing a dramatic shift, with a significant transition from being a net importer to becoming a rising global exporter of photovoltaic (PV) modules. This is being fueled by strategic policy measures, heavy investments in manufacturing, and a push to move into markets in West Asia and Africa.
India's Solar Export Boom
Over fiscal years 2022 to 2024, India’s exports of solar PV modules jumped more than 23 times, up to about $2 billion in FY2024. While most of these went to the United States, a strong push is now being made to diversify into African and West Asian countries. Nations like South Africa, Somalia, Kenya, the United Arab Emirates, and Afghanistan are new export markets for Indian solar modules, pointing to a strategic shift to these countries.
For insights into the latest developments and future outlook of solar panel production, check out the blog on ‘PV Manufacturing Trends in India’.
Africa and West Asia: The Next Frontier
While exports to the U.S. and Europe are expected to reach their peak by 2025, Indian solar manufacturers are looking towards Africa and West Asia more and more. This shift is driven by a number of factors:
- Growing Demand: Most African and West Asian nations are turning to renewable energy to address increasing electricity demands and sustainability requirements.
- Diversification Strategies: The world is exploring Chinese solar import alternatives, with opportunities for Indian producers.
- Policy Support: Support from India’s Production Linked Incentive (PLI) scheme and more has strengthened the country’s manufacturing capabilities so that companies can serve global markets efficiently.
- International Solar Alliance (ISA), which was co-founded by India, is in the forefront of promoting solar energy uptake in Africa.
- With 30 projects under implementation or development, the ISA is targeting the solarisation of schools, health facilities, government offices, cold storage facilities, and water pumps across the continent.
- The ISA is also soliciting Indian private sector investment to leverage the good will that has been created by the Indian government in Africa.
This joint initiative of Indian industry and the ISA not only exports new markets to India’s solar sector but also helps in achieving sustainable development for Africa and West Asia.
Conclusion
India’s solar export market is on the verge of a strong growth phase, with West Asia and Africa emerging as major markets. As the globe looks towards sustainable sources of energy, India’s position as a prominent solar manufacturing base is only going to get stronger.
