Drill Baby Drill: Is Trump Fueling a Solar Slowdown?

Over the past decade, the U.S. solar industry has grown rapidly, but signs of turbulence emerge as Trump takes charge for his second presidential term. The Energy Information Administration (EIA) projects a decline in solar installations from 37 GW in 2024 to 26 GW in 2025, and further down to 22 GW in 2026.

This shift could significantly impact Indian solar manufacturers observing the U.S. market. The Trump administration’s pro-oil and gas policies and potential trade restrictions could make it challenging for Indian manufacturers to maintain their base in the U.S. market. Any policy favoring local solar production over imports will hit global exporters, including India.

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What Indian Companies Should Focus On

Rethink market dependence:
The U.S. market may no longer absorb high export volumes. Indian manufacturers must explore emerging markets in Africa, the Middle East, and Australia, where demand for solar solutions continues to grow.
Shift to Advanced Solutions:
Solar installations might slow, but demand for integrated solutions, like solar with battery storage BESS or hybrid systems, will rise. Indian companies can lead by developing customized products that fulfill these needs.
Invest in Domestic Growth:
India’s solar expansion under initiatives like the PLI scheme offers immense potential. Double down on domestic manufacturing could protect against external market risks. India’s “Make in India” initiative will help the industry lower its dependence on imports and speed up demand.
Strengthen R&D:
Focus on producing low-cost, high-efficiency panels and innovative financing options like EPC+ models to stay competitive.
Collaboration with Global Players:
Partnering with renewable energy firms in regions like Europe, Africa, and the Middle East can open new doors for growth and diversification.

Indian solar manufacturers must diversify markets, innovate offerings, and reduce dependency on U.S. exports. The energy industry remains resilient, but tomorrow’s strategies will determine the winners.