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On February 24, 2026, the United States Department of Commerce dealt a significant blow to India's solar sector by declaring initial affirmative countervailing duty (CVD) determinations on crystalline silicon photovoltaic cells and modules imported into the United States, Indonesia, and Laos (see India solar industry, 2018). The investigation, which was launched in August 2025 after the Alliance for American Solar Manufacturing and Trade petitioned it, found actionable government subsidies by the Indian producers leading to actionable duties aimed at equalizing the unfair advantages.

In the case of India, there is an overall subsidy level of 125.87, and an importer might pay even more as a subsidy of 125.87 of the invoice price—really over fifty percent. There are certain rates one would align with major players, such as the Mundra Solar of Adani Group. Indonesia has 104.38% (with a maximum of 143.3% in some companies), and Laos has 80.67%.

This ruling can be traced back to findings that subsidies that may be in the form of export incentives, tax holidays, and subsidies and loans, among others, distort fair trade. In 2025, US solar imports from these three countries increased to approximately two-thirds of all imports, amounting to billions of dollars, which caused the move to support domestic producers as America strives to become independent in energy sources and the revival of clean technology.

The Indian exporters have become exposed to very high landed costs, which can make them uncompetitive in the US market. The industry representatives are concerned about supply chain failures and the increased prices for the American consumers, and the government can appeal the results. The last decisions must also be made by July 6, 2026, and may change. Parallel studies in the anti-dumping arena have been carried out, indicating that the US still monitors the Asian domination of the solar industry. Such a step puts pressure on renewable trade, and Indian companies have to turn to domestic markets or other markets as the world turns into a highly competitive solar energy market