US Deferral Sparks Uncertainty: CVD Investigation Into Indian Solar Inputs Extended Until September 2026
The US Department of Commerce has significantly deferred its final determination in the Countervailing Duty (CVD) investigation concerning solar panel inputs originating from India. The extension comes after Adani Enterprises firms, Mundra Solar Energy and Mundra Solar PV Ltd, requested additional time to meet the complex compliance requirements set by U.S. trade authorities.The original deadline for this crucial decision was expected in the first week of July 2026. However, following filings reviewed by Moneycontrol, the Department has pushed back the final ruling until September 10, 2026. Provisional measures related to these inputs have also been extended from four months to six months.
Timeline and Scope of the Investigation
The investigation pertains specifically to crystalline silicon photovoltaic (CSPV) cells and modules imported into the US from India. The process was initiated in July 2025 after petitioners, including First Solar and Hanwha Qcells, alleged that subsidized imports were negatively affecting domestic solar manufacturing.In August 2025, the US International Trade Commission determined that these imports, alongside those from Laos and Indonesia, were causing injury to American manufacturers, thus initiating anti-dumping and CVD investigations. Mandated respondents in this process included Mundra Solar Energy and Mundra Solar PV Ltd.
Preliminary Findings and Imposement of CVD
In its initial preliminary findings, published on February 20, 2026, the Department of Commerce imposed a significant penalty rate against the Indian entities. A preliminary countervailing duty (CVD) was set at 125.87% for Mundra Solar Energy and Mundra Solar PV.The same 125.87% rate was also applied as the subsidy rate for all other Indian manufacturers of crystalline silicon photovoltaic cells and modules covered by the investigation. The Commerce Department justified this finding, in part, citing non-cooperation from the two entities during the review process.
Subsidies Alleged to Violate WTO Rules
The U.S. Commerce Department concluded that there was a reasonable basis to believe that certain subsidies received by Indian manufacturers were inconsistent with the World Trade Organization's Agreement on Subsidies and Countervailing Measures (SCM). These alleged schemes included India's Advance Authorization Programme (AAP) and the Duty-Free Import Authorization (DFIA) scheme.The current deferral means that the provisional duties imposed by the US Commerce Department will remain in force until September 2026, despite the requested extension by the companies. This situation continues to prolong uncertainty for all Indian solar exporters covered under this extensive investigation.
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