Indian solar module and cell manufacturer Waaree Energies Ltd has outlined to its investors the key implications of the revised U.S. duty on solar imports on its business. In its latest investor call, the company’s top leadership sought to allay concerns over changes in the U.S. duty structure, while reiterating that the Mumbai-based firm has aggressive plans to expand its footprint in the country.
The company said it remains buoyed by the anticipated rise in solar module demand in the United States. It added that the new U.S. preliminary countervailing duties on solar imports are expected to have a limited impact on its business, as it continues to diversify its supply chain and expand local manufacturing in the U.S.
Recent US Duty On Solar
The U.S. Department of Commerce recently announced a preliminary duty of 126% on solar modules using India-made cells. Waaree Energies in its latest investors meet said the measure does not materially affect its operations as it does not use Indian cells for its U.S. exports. The company management said that it has been operating a non-Chinese supply chain for shipments to the U.S. since 2019, sourcing cells from regions with lower tariffs of around 10–15%.
To strengthen compliance with U.S. traceability requirements, Waaree has also invested in a polysilicon facility in Oman, it said, which is currently in pilot production. The move is aimed at ensuring a fully traceable and non-Chinese raw material base.
Ramping Up US Operations
Waaree is simultaneously ramping up its U.S. manufacturing footprint. Its module capacity in the country is expected to increase from 2.6 GW to 4.2 GW by the end of the year, including existing operations in Texas and a recently acquired facility in Arizona. The company reaffirmed its financial guidance, stating that margins remain stable despite regulatory changes. Management added that many customer contracts include ‘pass-through clauses’, allowing the company to offset potential duty-related cost increases.
“Based on nine-month trends, production is increasing sequentially each quarter as capacity ramps up. The current year reflects a combination of domestic capacity additions and overseas customer servicing from both India and U.S. facilities. The company is also expanding its U.S. footprint, with 1.6 GW of capacity under construction at its Texas site and a 1 GW capacity acquisition in Arizona. Both are expected to be commissioned over the next one to two quarters, taking total U.S. capacity to about 4.2 GW, which is sufficient to meet demand under the current order book,” the management said.
Waaree continues to view the U.S. as a high-value market, projecting annual demand could reach ’70–80 GW’, driven by rising power needs from artificial intelligence applications and data centres. India, it said, is well positioned to emerge as a key alternative manufacturing hub to China.
Further Backward Integration In US
The company sees an anticipated rise in order book in the US. “Over the past 12 months, the order book and consistent inflows from the U.S. market indicate one of the strongest demand cycles the company has seen from the region. Installation data in the U.S. reflects a similar trend. Historically, the U.S. has consumed around 50 GW of modules annually over the last four years on average. However, demand is expected to surge significantly this year, driven largely by rising power requirements from new data centres and the rapid expansion of AI-related infrastructure,”: the management told its investors.
The company said its existing U.S. manufacturing capacities are already operating at full utilisation, limiting its ability to cater to additional demand. It is therefore looking to accelerate capacity ramp-up in the U.S. and expedite the commissioning of newly announced facilities.
The company is also evaluating further backward integration, including the possibility of setting up cell manufacturing in the U.S., while maintaining its domestic expansion plans. It is expanding into adjacent segments such as inverters, transformers and transmission and distribution equipment to diversify revenue streams.
Management said its strategy of geographical diversification, supply chain flexibility and localised manufacturing positions it to navigate policy changes while capturing long-term growth opportunities in global solar markets.
