How Waaree protected its solar panel exports from US tariffs while Adani faltered

Subscribe to enjoy similar stories. Mumbai: Smart supply-chain manoeuvres and assembling in the United States helped India’s top solar panel exporter Waaree Energies maintain its lucrative trade with the country in the face of steep 50% tariffs on India, even as the exports of its main domestic rival Adani New Industries Limited faltered. Waaree sourced solar cells, the building blocks of solar panels, from suppliers in Southeast Asia to escape the crippling tariffs levied on India, the company’s management said during recent investor calls, as the US tariffs on solar panel imports are levied based on the country of origin of the solar cells rather than the country where the panels are assembled.

US tariffs on Southeast Asian countries such as Cambodia, Thailand and Vietnam are 19-20%, while Laos and Myanmar face 40% tariffs. Waaree also has a panel manufacturing line in the US with a 1.6 gigawatts-per-annum capacity that runs on imported cells, further securing business continuity. The company sold 275 megawatts worth of locally produced modules and 300 megawatts worth of imported modules in the US during the December quarter.

It earned a third of its ₹7,565-crore revenue from overseas – predominantly the US – according to an investor presentation. During the September quarter, the company earned nearly half of its ₹6,227-crore revenue from overseas. A statistic shared by the Waaree Energies management during a 22 January analyst call showed just how lucrative its solar exports to the US are.

The company sells modules in India for ₹18-24 per watt depending on whether the cells are imported or domestic (the latter cost more). In the US, it earns around 28 cents or ₹25 per watt, which can rise to 30 cents or ₹27. While