Indian solar stocks came under sharp selling pressure on February 25, 2026, after reports said the US has proposed preliminary import duties of up to 126% on solar products from India, triggering concerns over exports, margins, and demand visibility.
📉 Stocks under pressure
- Waaree Energies plunged as much as 14.2% to around ₹2,591 on the NSE.
- Vikram Solar slid over 7.5% to about ₹171.
- Premier Energies also declined sharply in early trade before trimming losses, despite limited direct exposure to the US market.
🇺🇸 What spooked investors?
According to media reports, the US Commerce Department has set initial countervailing duties on solar imports after determining that certain countries had “unfairly subsidised manufacturing.”
- India faces duties of up to 126%.
- Indonesia could see rates between 86% and 143%, while Laos faces around 81%.
The move is aimed at protecting domestic manufacturers but has heightened uncertainty for an industry not favoured by US President Donald Trump, potentially pushing up costs for producers and consumers alike.
🌍 Export exposure matters
Market participants pointed out that the sell-off was most pronounced in companies with meaningful US exposure:
- Waaree Energies derives roughly 29% of revenue from exports.
- Vikram Solar earns about 16% from overseas markets.
- Premier Energies has negligible export exposure, suggesting its decline was largely sentiment-driven.
📊 Bigger picture
Data cited by BloombergNEF show India, Indonesia, and Laos together accounted for 57% of US solar module imports in H1 2025, after buyers pivoted away from Southeast Asian suppliers hit by earlier US duties.
US solar imports from India alone were valued at $792.6 million in 2024, more than nine times the 2022 level—making the proposed duties particularly impactful.
🧭 What’s next?
While these duties are separate from broader global tariffs—some of which were recently struck down by the US Supreme Court—the fresh measures add volatility to solar stocks. Investors are now watching for:
- Final duty determinations
- Possible diplomatic or trade responses
- Company-specific guidance on export diversification and margin impact
