Indian Solar Manufacturers Face Stock Decline Amid US Duty Announcement

Shares of Indian solar manufacturers plummeted after the US announced countervailing duties on solar cells and panels from India and other Asian nations. The US Commerce Department cited government subsidies in these countries as a reason for the duties, which could disrupt the solar market significantly. Major companies like Waaree Energies, Premier Energies, and Vikram Solar saw substantial stock declines. This move is part of a broader trade case affecting the solar industry, with further rulings expected soon. Read on to learn more about the implications for the solar market and the affected companies.

By Narendra Chaudhary Feb 25, 2026, 16:51 IST

Impact of US Countervailing Duties on Indian Solar Stocks

On Wednesday, shares of solar equipment manufacturers in India experienced a significant drop following the announcement from the United States regarding the imposition of countervailing duties on solar cells and panels imported from India and several other Asian nations. The US Commerce Department indicated that these duties would be applied to imports from India, Indonesia, and Laos, aiming to bolster domestic production in the United States.

The department highlighted that manufacturers in these three countries benefit from government subsidies, which create an uneven playing field for American producers. A fact sheet released by the department revealed that the estimated subsidy rates were 125.87% for Indian imports, 104.38% for those from Indonesia, and 80.67% for Laos, as reported by Reuters.

This announcement led to a sharp decline in the stock prices of Indian solar manufacturers. Waaree Energies saw its shares plummet by as much as 15% before recovering slightly to a loss of around 11%, marking its largest single-day drop. Similarly, Premier Energies and Vikram Solar experienced declines of up to 14.2% and 7.8%, respectively, before reducing their losses.

According to government trade statistics, these three countries collectively accounted for $4.5 billion in solar imports last year, which is approximately two-thirds of the expected total for 2025.

Historically, US tariffs have significantly impacted global solar supply chains, with shipments from Malaysia, Vietnam, Thailand, and Cambodia experiencing sharp declines after duties were imposed on those countries last year.

This recent decision marks the first of two expected rulings in a trade case initiated last year by a coalition representing segments of the US solar manufacturing sector. The Commerce Department is anticipated to make a further ruling next month regarding whether companies from these three nations sold their products in the US at prices below their production costs.