Mumbai | February 25, 2026

Indian solar stocks witnessed sharp selling on Wednesday after the US Commerce Department imposed a preliminary countervailing duty (CVD) of 125.87% on solar cell and panel imports from India.

The move triggered heavy declines in export-oriented renewable energy stocks, with investors reassessing revenue visibility from the key US market.

Waaree Energies, Premier Energies Lead Fall

Waaree Energies shares crashed as much as 14.6% to ₹2,580 in early trade on the NSE, after briefly hitting the lower circuit.

Vikram Solar declined nearly 7%, while Premier Energies dropped over 12% during the session.

Other notable solar-related stocks also traded lower:

• Waaree Renewable Technologies fell over 6%
• Solex Energy slipped nearly 5%
• Saatvik Green Energy declined around 3%
• Borosil Renewables fell over 1%

What Triggered the Sell-Off?

The US Commerce Department announced preliminary countervailing duties of 125.87% on Indian solar imports, Citing findings of actionable government subsidies.

The duties take immediate effect, requiring US importers to post cash deposits on new shipments.

The action forms part of a broader trade investigation covering imports from India, Indonesia and Laos. Subsidy rates were set at:

• 125.87% for India
• 104.38% for Indonesia
• 80.67% for Laos

The case follows a petition filed by the Alliance for American Solar Manufacturing and Trade, which includes US manufacturers such as Hanwha Qcells, First Solar and Mission Solar.

Why the US Market is Critical for India

The US has emerged as a key export destination for Indian solar manufacturers.

Waaree Energies derives approximately 29–32% of its revenue from overseas markets, with the US being a major focus for expansion.

Vikram Solar has meaningful export exposure, with an estimated 16–20% of revenue linked to international shipments.

Premier Energies’ direct exposure to the US module market is relatively lower, though sentiment impact weighed on the stock.

Between 2022 and 2024, Indian solar exports to the US reportedly grew nine-fold to nearly $793 million, attracting closer scrutiny from US authorities.

Imports from India, Indonesia and Laos were valued at about $4.5 billion last year and accounted for nearly two-thirds of total US solar imports in 2025, according to US trade data.

What Lies Ahead?

The current ruling is a preliminary determination.

The US Commerce Department is expected to issue a separate decision next month on potential anti-dumping duties, which could further raise tariff levels if exporters are found to have sold products below cost.

Final determination on the countervailing duties is scheduled for July 2026. If upheld, the elevated tariffs could significantly affect export competitiveness, order execution and margin outlook for Indian solar manufacturers.

Market Impact and Outlook

The sharp correction reflects investor concerns over:

• Revenue concentration in the US market
• Potential margin compression
• Order book risks
• Policy uncertainty

Some Indian manufacturers have previously explored setting up production facilities in the US to mitigate tariff risks. However, in the near term, the duties are likely to weigh on sentiment.

Solar stocks may remain volatile until clarity emerges on final duty rates and any diplomatic or trade negotiations between India and the US.

For more market-related updates, follow PL Capital.