Waaree Energies Reshapes Supply Chain to Bypass US Solar Tariffs
India's top solar exporter, Waaree Energies, is reconfiguring its supply chain to avoid steep US import tariffs. The company is sourcing solar cells from countries with lower tariffs, relying on a 2012 customs ruling that determines panel origin by the cell's country of manufacture. This move aims to maintain access to the US market despite increased trade scrutiny.
Waaree Energies, India's leading solar module manufacturer and a major exporter to the United States, is adjusting its supply chain to bypass high US import tariffs. The company is now sourcing solar cells from countries that face lower export duties to the US, allowing it to continue supplying its largest market. This strategy is based on a 2012 customs ruling that attributes the origin of solar panels to the country where the solar cell was manufactured, not where the panel is assembled. As a result, even if modules are assembled in India, tariffs are applied based on the cell's origin. Waaree's approach is part of a broader trend among Indian solar firms seeking to navigate complex US trade regulations and maintain competitiveness. However, this has drawn scrutiny, with US authorities launching an investigation into possible tariff evasion, including allegations that some Chinese-made panels were misdeclared as Indian. The probe has led to cash deposit requirements and raised concerns about potential penalties and reputational risks for Indian exporters. Despite these challenges, Waaree Energies remains committed to compliance and cooperation with US authorities, while continuing to expand its presence in the US market.
