Waaree Energies, Vikram Solar, Premier Energies fall up to 15% as U.S. imposes 126% preliminary duty on Indian solar imports

Shares of major Indian renewable energy companies slumped up to 15% in early trade on Wednesday, with several stocks hitting their lower circuits, after the U.S. Commerce Department imposed steep preliminary countervailing duties (CVDs) on solar imports from India.

Among the worst hit was Waaree Energies, which plunged 14.46% to ₹2,586.20 on the NSE. Premier Energies fell 7.74% to ₹716.90, while Vikram Solar declined 5.78% to ₹174.68.

Other solar-linked stocks also faced heavy selling pressure. Waaree Renewable Technologies dropped 5% to ₹822.50, Insolation Energy slumped 12.78% to ₹100, and Websol Energy System fell 3.67% to ₹58.86.

Wind and diversified renewable players were relatively resilient but still traded lower. Suzlon Energy declined 0.91% to ₹43.73, Adani Green Energy slipped 0.49% to ₹976.50, and Borosil Renewables fell 1.43% to ₹457.90.

126% preliminary duty jolts market

The sell-off followed the U.S. Commerce Department’s decision to impose preliminary countervailing duties of 125.87% on solar imports from India, citing alleged government subsidies that allow Indian manufacturers to undercut American producers.

Although the duties are preliminary, they take immediate effect, with U.S. Customs requiring importers to post cash deposits on new shipments. Analysts warn that such elevated rates could effectively price Indian exporters out of the U.S. market in the near term.

The action extends beyond India. Similar duties were imposed on Indonesia (86%–143%) and Laos (81%). Collectively, India, Indonesia and Laos accounted for 57% of U.S. solar module imports in the first half of 2025.

Analysts at Citigroup said the scale of the duties could render the U.S. market “largely unavailable” for many Indian solar manufacturers, potentially disrupting export pipelines and earnings visibility.

Trade pact momentum disrupted

The move comes weeks after India and the United States agreed on a broad trade framework aimed at lowering tariffs on Indian exports to around 18%, from nearly 50% earlier. However, that momentum was disrupted after the Supreme Court of the United States struck down earlier Trump-era tariffs, prompting the administration to introduce a new 10% baseline import duty, with scope for further increases.

U.S. officials argue that the surge in solar imports from India and parts of Southeast Asia reflects production shifts by Chinese manufacturers seeking to circumvent existing trade barriers. Industry data show that India, Indonesia and Laos together accounted for nearly 57% of U.S. solar module imports in the first half of 2025.

India, in particular, has seen a sharp rise in shipments. U.S. imports of Indian solar equipment climbed to $792.6 million in 2024, nearly nine times higher than in 2022.

Tim Brightbill, lead counsel for the Alliance for American Solar Manufacturing and Trade, backed the decision, calling it a boost for domestic solar manufacturing investment. “Those investments cannot succeed if unfairly traded imports are allowed to distort the market,” he said.