US has given a big blow to solar panels and sales coming from India. The US Commerce Department has imposed an initial countervailing duty of up to 126 percent. This duty was imposed because the US believes that the Indian government is giving subsidies to solar companies, due to which Indian solar panels are being sold in the US at very low prices and the domestic companies there are incurring losses. Apart from India, 143 percent duty has been imposed on Indonesia and 81 percent duty on Laos. This is an initial decision, which will be finalized later.
This decision has come in response to the complaint of US solar companies. The group had filed a petition in July 2025, alleging that Chinese companies were shifting production to India, Indonesia and Laos to avoid tariffs and sell cheap solar panels. US companies say that their investments and jobs are at risk.
Which US companies are creating trouble for Indian solar companies?
The companies that filed the petition include members of the Alliance for American Solar Manufacturing and Trade. These companies mainly include First Solar, Hanwha Qcells (or Qcells), and Mission Solar Energy. Talon PV Solar Solutions also supported these companies. Let us first talk about those American solar companies which have challenged Indian solar companies. First Solar is an American company formed in 1999 that manufactures solar panels and is considered the largest photovoltaic solar technology company in the United States. It is one of the world’s top solar manufacturers and the only major company headquartered in the United States. The company is also number one in recycling, recycling more than 90 percent of its solar panels. First Solar plays an important role in strengthening the American solar industry and creating jobs through increased domestic production.
Hanwha Qcells (or Qcells) is a South Korean company that is part of the Hanwha Group. It was started in Germany in 1999 as Q-Sales and was later purchased by Hanwha. It is now one of the largest solar companies in the world, manufacturing high-performance solar cells and modules. The company is headquartered in Seoul and has manufacturing factories in the United States, Germany, Malaysia and Korea. Mission Solar Energy is an American company started in 2014 and based in San Antonio, Texas. It manufactures high-efficiency solar modules and offers solutions for residential, commercial and utility-scale markets. It is a subsidiary of OCI Holdings, a large Korean green energy company.
Which Indian solar companies will be most affected?
Indian solar companies will bear the direct impact of this, as the United States is their biggest market. In 2024, solar imports from India to the United States were $792.6 million, nine times more than in 2022. With 126 percent duty, exports will become very expensive, which will affect the market. The imposition of initial duty will have a direct impact on those companies which have a large export share in the US market. The companies that will be most impacted include Weir Energies Limited, Premier Energies and Vikram Solar. The impact of countervailing duty on these companies is being felt today itself, 25th February.
decline in shares
Shares of Were Energies fell 10 per cent to ₹2,721 on February 25, 2026. The company also operates in the US, is manufacturing there, and increasing investment. It has recently acquired Meyer Burger. The order book for the December quarter stood at ₹60,000 crore, and EBITDA for FY26 is expected to be ₹5,500 to ₹6,000 crore. In the December quarter, 32.6 percent of the revenue came from overseas markets. Shares of Premier Energies also hit 10 per cent lower circuit, stopping trading at ₹699.35. The company has less exposure to the US, so the impact may be less. Shares of Vikram Solar fell 5.72 per cent to ₹174.79. About 20 percent of the company’s order book is related to exports.
Anti-dumping duty was imposed on these countries in April
Last year, when the US imposed anti-dumping duty on Malaysia, Vietnam, Thailand and Cambodia in April 2025, India opted out, while shares of Vari and Premier rose. But now India has also joined it. The purpose of this policy of the Trump Administration is to save the US solar industry. First the Supreme Court abolished the reciprocal tariff, then imposed 10 percent universal tariff, which was increased to 15 percent. Indian solar companies can now focus on markets other than the US or local production. Companies like Wari are expanding their factories in the US, which may bring some benefits. The turmoil in the stock market clearly shows that these duties will be a big challenge for Indian solar exports.
