Waaree Energies Ltd. stands to benefit if Donald Trump wins the US presidential election 2024 and the proposed tariffs on China are imposed on solar modules.
This is because one of the major policies proposed by the Republican presidential nominee is to impose 60% or higher tariffs on imports from China and 10–20% on the rest of the world.
However, it is to be noted that if higher tariffs are also set on the rest of the world, including India, Waaree Energies could see some setbacks. However, the company has also taken steps to protect itself from this threat.
Indian Solar Module Exports
US barriers on China for imports of solar PV cells and modules have greatly benefited the Indian solar module exporters, according to JM Financials. India's solar module exports to the US have grown significantly from Rs 600 crore in fiscal 2021, to Rs 10,500 crore so far in fiscal 2025.
Thus, further measures under Trump could benefit Indian solar cell and module exports, said JM Financial.
Waaree Energies: US Dependency
Newly listed Waaree Energies is India's largest solar module manufacturer, with a capacity of 13 GW, which it plans to expand to over 20 GW by fiscal 2027.
As per Monarch Network Capital, with solar exports gaining momentum over the last two years, Waaree Energies has captured a 44% share of India's solar export market, particularly in key regions like the USA.
In fiscal 2024, Waaree Energies total export sales revenue stood at Rs 6,569 crore. Of this total, Rs 6,543 crore went to the company's largest jurisdiction, the USA. This accounted for 57.14% of the company's total revenues.
Waaree Energies: US Expansion Plans
If the US imposes 10-20% tariffs on solar imports to the rest of the world, it could harm demand sentiment for Indian players. However, Waaree Energies' plans for its US subsidiary, Waaree Solar Americas Inc., could help mitigate this headwind.
The company plans a 1.6 GW module manufacturing facility in Houston, Texas, with potential expansion to 3 GW by fiscal 2026 and 5 GW by financial year 2026-2027, depending on market conditions. Additionally, it aims to establish a 5 GW solar cell facility in the US by fiscal 2027 to support module production and qualify for Inflation Reduction Act incentives; site selection and feasibility studies are ongoing.
Waaree Solar Americas Inc. has also entered into a 5-year binding agreement with a customer for supplying 3.75 GW of solar modules upon commissioning the US facility, which will be operational by fiscal 2025.
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