India at forefront in reducing Chinese solar panel imports

• India significantly reduces solar panel imports from China, marking a 76% year-on-year decrease.
• India's emphasis on domestic solar module production contributes to this reduction, driven by tariffs and efforts to enhance self-sufficiency.
• The decrease in solar imports lowers the figure from 9.8 GW in H1 2022 to 2.3 GW in H1 2023.
• China, with 80% of global solar manufacturing capacity, remains a key player in clean energy expansion.
• Global solar energy growth is rapidly accelerating, with capacity projected to double by 2024, emphasizing the importance of policies supporting installation and grid integration.

Energy think tank Amber analyzed and found that India significantly reduced imports of solar panels from China, making it the only country to do so. India's focus on increasing its domestic solar manufacturing capacities has led to this development. The analysis further reveals that Asia as a whole experienced a decrease in imports from China during the first half of 2023, compared to the same period last year.

India reduces solar imports from China

India's domestic production of solar modules has significantly increased, resulting in a sharp decline in solar panel imports from China. The analysis reveals that India's solar module imports from China have experienced a massive 76% year-on-year decrease, which is equivalent to 7.5 gigawatts (GW).

This reduction has lowered the import figure from 9.8 GW in the first half of 2022 to only 2.3 GW during the same period in 2023. The change occurred after India introduced tariffs as part of its efforts to reduce dependence on imports and enhance domestic manufacturing.

Highlighting this positive trend, Neshwin Rodrigues, India's power policy analyst at Amber, said, “Due to recent policy efforts, India's dependence on China for solar module imports has reduced significantly after 2022. As India India will increase its domestic manufacturing capacity, reducing its reliance on Chinese modules and cells as before. What is important now is to create an effective policy environment that will enable the installation of solar plants to increase in line with the goals of the National Electricity Plan. May prove helpful."

Amber analyzes Chinese export data in this latest report and introduces a new dataset that provides monthly updates on exports to different countries. China, with approximately 80% of global solar manufacturing capacity, plays a key role in the worldwide expansion of clean energy.

Solar energy growth accelerates worldwide

Sam Hawkins, data lead at Amber, highlighted the rapid growth of solar energy, saying, “Solar energy is experiencing remarkable growth, and the world is ready to harness this affordable, clean and abundant source of electricity for future economies. "It is clear that global manufacturing capacity is currently not the limiting factor in achieving the required five-fold increase in solar energy by 2030."

The analysis shows that Chinese solar panels exports increased by 34% during the first half of 2023, amounting to 114 GW exported worldwide, in comparison to 85 GW during the same period last year. After Turkey, India has become the second largest destination for Chinese solar cells, which are assembled into solar panels locally.

The International Energy Agency (IEA) projects that global solar photovoltaic (PV) manufacturing capacity will reach approximately 450 GW in 2022, exceeding a 70% increase. Projections suggest that this capacity will double to about 1000 GW per year by 2024. Although China will continue to account for most of this growth, the United States, Europe, India, and other Asian countries will collectively add around 70 GW per year.

"Ample supply of solar panels has been concluded by Sam Hawkins, Amber's data lead, along with emphasizing the need to focus on installing them. It is important to establish policies that can keep up with the global supply of modules and installations, while also prioritizing the rapid expansion of grid integration."

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