US Imposes 126% Preliminary Countervailing Duty on Indian Solar Imports After Subsidy Findings

The United States has imposed a preliminary countervailing duty (CVD) of 125.87% on solar cells and modules imported from India after concluding that manufacturers benefited from actionable government subsidies. The US Department of Commerce announced the decision as part of an ongoing trade remedy investigation. The probe also covered Indonesia and Laos, where preliminary subsidy rates were calculated at 104.38% and 80.67%, respectively.

The investigation was initiated following a complaint by the Alliance for American Solar Manufacturing and Trade, a group representing domestic producers. Its members include First Solar, Mission Solar Energy, and Hanwha Qcells.

$4.5 Billion in Imports Under Lens

Combined solar imports from India, Indonesia, and Laos were valued at approximately $4.5 billion last year, representing nearly two-thirds of total US solar imports in 2025, according to trade data referenced in the investigation.

At the India-specific rate of 125.87%, a solar shipment invoiced at $100 would face an additional $125.87 in duties upon entry into the US. This will effectively push the landed value above $225 before freight, insurance, and distribution costs.

Apart from the countrywide margins, the Commerce Department assigned individual rates to select manufacturers.

India’s Mundra Solar received a rate of 125.87%. In Indonesia, PT Blue Sky Solar was assigned 143.3%, while PT REC Solar Energy received 85.99%. For Laos, SolarSpace Technology Sole Co and Vietnam Sunergy Joint Stock Company were each assessed 80.67%.

The countervailing duty ruling addresses subsidy benefits. A separate anti-dumping determination, examining whether exporters sold below cost in the US market, is expected next month. Final duties will depend on the outcome of both proceedings, as well as an injury determination by the United States International Trade Commission.

Supply Chain Implications

The US solar market has undergone significant supplier shifts in recent years following earlier tariff actions that sharply reduced imports from Southeast Asian hubs. With the current preliminary rates ranging between 80.67% and 143.3%, trade flows involving three major supplier nations could face fresh disruption if the duties are confirmed.

For India, which has expanded solar manufacturing capacity rapidly in recent years as part of its export push, the 125.87% rate poses a significant challenge in one of its key overseas markets.

-With inputs from Reuters 

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