Indian Solar Stocks Plunge After US Imposes 126% Countervailing Duty on Imports

US Countervailing Duties Trigger Sharp Sell-Off in Solar Shares​

Mumbai, February 25: Shares of Indian solar and renewable energy companies came under sharp pressure in early trade on Wednesday after the US Department of Commerce imposed preliminary countervailing duties of 125.87% on solar cell and panel imports from India.

The announcement weighed heavily on investor sentiment, triggering broad-based declines across the listed solar manufacturing segment.

Waaree, Premier Energies Lead Declines​

Waaree Energies emerged as one of the biggest losers, falling as much as 14.6% to Rs 2,580.50 and hitting the lower circuit during the session. The stock later recovered partially to trade at Rs 2,724, down 9.90%.

Premier Energies dropped 4.57% to Rs 741.55 after earlier slipping to an intra-day low of Rs 666.90.

Other renewable energy stocks also witnessed notable losses:

Vikram Solar declined nearly 7%.
Waaree Renewable Technologies fell over 6%.
Solex Energy slipped about 5%.
Saatvik Green Energy dropped nearly 3%.
Borosil Renewables eased just over 1%.

The steep decline reflects concerns over export competitiveness and the potential impact of higher duties on Indian manufacturers supplying to the US market.

Import Subsidy Rates Announced​

According to a fact sheet issued by the US Department of Commerce, the countervailing duties were imposed in response to what it described as unfair subsidies provided by exporting nations.

The preliminary subsidy rates were set at:

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

The move follows a petition by the Alliance for American Solar Manufacturing and Trade, whose members include Hanwha Qcells, First Solar, and Mission Solar.

Anti-Dumping Review in March​

The Department of Commerce is also expected to announce a separate decision in March to determine whether exporters from India, Indonesia, and Laos sold solar products in the US below production costs. A positive finding could result in additional anti-dumping duties, adding further pressure on exports.

$4.5 Billion Solar Trade in Focus​

Solar panel imports from India, Indonesia, and Laos were valued at about $4.5 billion last year. These imports accounted for nearly two-thirds of total US solar imports in 2025, based on data cited by the US department.

The scale of trade underscores the importance of the US market for Indian solar manufacturers.

White House Signals Wider Tariff Scope​

The White House clarified last week that India would face a temporary 10% tariff starting February 24. The Trump administration has indicated that additional tariff authorities may be invoked in the coming weeks.

During a press conference, President Donald Trump said other statutes, including Sections 232 and 301, remain available and could support further trade action.

With countervailing duties now in place and the possibility of anti-dumping measures ahead, the Indian solar sector faces heightened uncertainty in one of its key export markets.