Mumbai: Indian solar panel makers are eyeing the European Union (EU) as the next big export market, as the bloc steps up its decarbonisation push and moves to cut reliance on China.
However, much of the opportunity hinges on New Delhi and Brussels signing their much-anticipated free trade agreement (FTA), industry executives said.
So far, Indian solar panel makers have been largely priced out of European and other key export markets by Chinese companies that sell at significantly lower prices. Indian solar panel makers such as Adani New Industries Ltd and Waaree Energies Ltd have focused on exports to the US, where restrictions on Chinese products have made Indian modules more competitive.
That could soon change, as Europe looks to reduce its dependence on China through policy measures, according to executives at leading solar panel companies like Waaree, Premier Energies Ltd, Vikram Solar Ltd, and Emmvee Photovoltaic Power Ltd. They shared these views in their latest investor calls or in conversations with Mint.
A recent European regulation, the Net Zero Industry Act (NZIA), mandates that no single third country account for more than 50% of the value of clean technology products or their key components. This effectively reduces Chinese dominance in this market, opening it up for other players. Italy and France have already awarded some capacities under this policy.
China challenge
“Europe is beginning to move away from China and is looking at alternative sourcing options. That opens doors for Indian companies. Already, Italy and France have auctioned some renewable energy capacities that are largely closed to China,” said Vinay Rustagi, the chief business officer at Premier Energies, a leading manufacturer of solar panels and cells.
The EU's proposed Industrial Accelerator Act (IAA), which stipulates India-like localization mandates for renewable energy projects using public money, could further open up the market for India. This is because the proposal has an option to grant local-equivalence to goods made in countries with which the EU has trade pacts. India is yet to finalize its long-awaited free-trade agreement with the European trading bloc, which could potentially grant Indian firms a favourable footing.
“Today, outside of China, India is among the few countries building solar manufacturing capacity at meaningful scale, supported by a large and growing domestic market. As Europe moves towards a more resilient and diversified solar ecosystem, India can emerge as an important long-term partner,” Suhas Donthi, chief executive officer of Emmvee, said.
While the NZIA was an important catalyst, the IAA could further strengthen the opportunity, he said. But he cautioned that the benefits for Indian manufacturers will depend on the final framework of the regulation and India’s eligibility, he added.
“At Emmvee, we see Europe as a meaningful medium- to long-term opportunity, both for us and for the broader Indian solar manufacturing sector,” Donthi said.
Analysts said the EU is actively looking to move away from China, potentially unlocking significant opportunities for Indian module exporters.
"With upcoming large module manufacturing in India, Indian companies could look at more export markets for growth," said Harshraj Aggarwal, executive vice president - institutional equity research at Yes Securities. "The 'non-China' market segment in Europe is an immediate ~1-2 GW opportunity for each major country like Italy, Germany, Spain, and the Netherlands. Overall, the EU can be a 50-60 GW market, and less than 8% is manufactured locally and rest imported from China. Under Net-zero Industry Act, EU is moving away from China. So, India has an easy 50 GW market to tap into given it's one of the few global manufacturers able to fill this void."
Chinese solar panels are priced up to 30% lower than Indian panels in Europe, according to a January 2026 report by policy think tank The Energy and Resources Institute (Teri), which cited 2024 data.
This cost disadvantage confined India's solar exports largely to the US, which has imposed curbs on Chinese solar products. India exported a record $2 billion worth of solar modules in FY24, majorly to the US.
The solar panel exports to the US have moderated since, with only one company - Waaree - continuing shipments to the country in the face of tariffs levied on Indian imports. This has redirected significant excess module capacity to the domestic market, underscoring the need for a major export destination such as Europe.
In their January report, Teri experts noted India’s cost disadvantage versus China in the global markets, and flagged the policy developments in Europe as an emerging opportunity.
“The practical consequence is that India is unlikely to displace China in fully open, price-clearing markets on cost alone. Instead, India’s competitive space is most credible where buyers value, or are required to diversify the supply chain, and where factors such as traceability, delivery assurance, and compliance reduce the weight of pure price competition,” Teri noted in its report.
Market opportunities in Europe stretch beyond solar panels. Waaree Energies is eyeing opportunities in battery energy storage system (BESS) exports too, emerging from the same policy restrictions on Chinese equipment. Apart from India, markets like the US, Europe, Australia and New Zealand could account for significant BESS offtakes, Abhishek Pareek, chief financial officer of Waaree, said in an investor call on 30 July.
Meanwhile, wind turbine maker Suzlon Energy Ltd returned to Europe in April, two decades after exiting the market. The company considers Germany, Spain, Romania, Italy, France, Poland and Portugal as its key markets, besides India.
India's solar industry has rapidly emerged as a key export sector, supported by a favourable policy environment that helped overcome initial challenges. Waaree Energies reported over ₹26,500 crore in revenues during the year ended March 2026, while Premier Energies, Vikram Solar and Emmvee recorded revenues in a range of ₹4,800- ₹8,000 crore.