Shares of Indian solar companies, including Waaree Energies and Premier Energies, experienced significant gains following a U.S. decision to impose substantial tariffs on solar panel imports from Southeast Asia. The new duties, which can reach as high as 3,521%, target products from nations such as Cambodia, Vietnam, Malaysia, and Thailand. This move aims to counteract what the U.S. perceives as unfair trade practices by Chinese manufacturers operating in these regions.
On the morning of April 22, 2025, Waaree and Premier shares rose by more than 6% during trading hours in Mumbai, reflecting investor optimism that Indian manufacturers will likely benefit from reduced competition in the U.S. market. Data from Stocktwits indicates that retail sentiment is "extremely bullish" on Waaree Energies, which is set to report its fourth-quarter earnings later today.
Rohit Mehta, a SEBI-registered analyst, highlighted a critical technical setup for Waaree Energies, noting a strong support zone between ₹2,026.55 and ₹2,086.15. This support has held during previous market corrections. He added that the stock faces immediate resistance at ₹2,902.95, with a potential breakout above this level likely to trigger a re-test of its all-time high.
Meanwhile, Hyderabad-based Premier recently announced the launch of its subsidiary, Premier Energies GWC, which will specialize in manufacturing silicon ingots for solar cells. This development aligns with U.S. trade policies increasingly focused on reducing dependence on Chinese manufacturing, triggering shifts in global supply chains as companies seek alternative manufacturing bases in countries like India.
Adding to the momentum, U.S. Vice President J.D. Vance is visiting India this week, underscoring the strengthening bilateral ties between the two nations. His visit is expected to open new avenues for collaboration, particularly in sectors like renewable energy.
Despite the recent surge, Waaree Energies stock is still down 8% year-to-date (YTD), while Premier Energies shares have declined by 21% YTD. However, the recent tariffs have sparked a wave of optimism among investors.
India's solar equipment sector is rapidly expanding, driven by government initiatives, technological advancements, and strong policy support. Valued at approximately USD 5.39 billion in 2023, the market is projected to grow at a compound annual growth rate (CAGR) of over 9% through 2029. Solar capacity additions are set to double to 30 GW in 2025, with significant contributions from utility-scale and rooftop installations, positioning solar as the leading renewable energy source in India.
The U.S. decision to impose new tariffs as high as 3,521% on imports from Cambodia, Vietnam, Malaysia, and Thailand follows a probe that began during former President Joe Biden’s tenure. U.S.-based solar manufacturers initiated this investigation, citing unfair practices in these countries.
In addition to the tariffs imposed by President Trump earlier this month, the U.S. will also impose antidumping and countervailing duties. These levies aim to counteract unfair pricing and subsidies as determined by the Commerce Department, further impacting international trade and supply chains with increased costs and regulatory scrutiny.
The new duties specifically target about $12.9 billion worth of solar equipment imported last year from Vietnam, Thailand, Malaysia, and Cambodia, which accounted for roughly 77% of all U.S. module imports. This could significantly reshape supply chains and drive up costs in the U.S. solar market, ultimately affecting installation rates.
Waaree Energies' product portfolio includes various types of photovoltaic (PV) modules, such as multicrystalline, monocrystalline, and TopCon modules, which include flexible, bifacial (Mono PERC), both framed and unframed, as well as building-integrated photovoltaic (BIPV) modules. With a market capitalization of ₹73,505.72 crore, the shares were trading at ₹2,560.50 per share, reflecting a 6% increase compared to the previous closing price.
Premier Energies Ltd is a manufacturer of solar cells and modules, focusing on producing solar photovoltaic (PV) cells, specifically bifacial monocrystalline PERC cells using the M10 wafer size in a 182mm x 182mm format, which can be assembled into solar modules. With a market capitalization of ₹47,869.98 crore, the shares of Premier Energies were trading at ₹1,061.95 per share, marking an 8% increase compared to the previous closing price.
As the solar energy sector continues to evolve, the implications of these tariffs will be closely monitored. The threat of tariffs on countries supplying over $10 billion worth of solar products to the U.S. last year has triggered a dramatic shift in the global solar trade. Imports from the four targeted countries this year have dwindled to a fraction of what they were a year ago, while shipments from emerging suppliers such as Laos and Indonesia are on the rise.
In conclusion, the imposition of steep tariffs on solar imports from Southeast Asia poses both challenges and opportunities for Indian solar firms. As the market adapts to these changes, the future of solar energy in India appears bright, with potential for growth and increased collaboration in the renewable energy sector.
