Magazine

Last edition
September 2023 2023

Home › Renewable energy ›India Witnesses 76 percent YoY Decline in Solar Module Imports from China

India Witnesses 76 percent YoY Decline in Solar Module Imports from China

The module exports to India declined by 76 percent (-7.5 GW) year-on-year, down from 9.8 GW in the first half of 2022 to 2.3 GW during the same period in 2023.

September 14, 2023. By Anurima Mondal

India is making significant strides toward renewable energy with a focus on solar energy. Not only it is progressing towards its ambitious solar target of 280 GW by 2030, but also taking steps to boost its manufacturing capacity. By 2026, the country aims to increase manufacturing capacity to 110 GW per year and reduce imports significantly.

According to a recent report by released by energy think tank Ember, India was the only country to see a large fall in imports from China. The module exports to India declined by 76 percent (-7.5 GW) year-on-year, down from 9.8 GW in the first half of 2022 to 2.3 GW during the same period in 2023. This followed the imposition of tariffs as India shifts away from imports to focus on building and utilising domestic manufacturing capacity.

Meanwhile, Europe saw the largest absolute growth in solar panels imported from China in the first half of 2023 compared to the previous year, while Africa saw the largest percentage growth, driven by large increases in South Africa. Many parts of Asia, Latin America and the Middle East also saw significant growth.

While India has relaxed its import duty to partly resume Chinese solar imports, the country has increased manufacturing capacity with an aim to become self-sufficient.

Solar cells, which are unassembled parts that make up solar panels, made up the remaining 10 percent of China’s solar exports by value (USD 2.5 bn). The main export destinations for solar cells were Türkiye (33%), India (17%), Cambodia (15%), Thailand (10%) and South Korea (4%).

There has been a rise in the number of Chinese cells, which are then assembled locally into solar panels, with India now the second largest destination for exported solar cells after Türkiye.

As per International Energy Agency (IEA), global solar PV manufacturing capacity has increased by over 70 percent to reach almost 450 GW in 2022. Further, it is expected to reach almost 1000 GW capacity per year in 2024. While most of the growth is still in China, 70 GW per year of capacity will come online spread across the United States, Europe, India and other countries in Asia. This makes India an important country in terms of solar PV manufacturing.

Tags:

International Energy Agency

Solar panels

Imports from China

India