MC EXCLUSIVE Solar players to counter US dumping, subsidy allegations by international trade commission: Sources

Solar Panels

• Indian solar firms engage US ITC to counter dumping allegations
• US Commerce Dept imposed 125.87 percent duty on Indian exporters
• Indian exports to US hit 99.5% of Q1 2025 sales

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Indian solar manufacturers are directly engaging with the US International Trade Commission (ITC) to submit data and findings aimed at countering allegations that they are dumping solar cells in the American market and harming domestic producers, sources familiar with the matter said.

“We decided not to respond to the questionnaire of the Commerce Department as we will be directly dealing with the ITC, which will announce the final affirmative decision on the tariffs in June. We are expecting to send out inputs to the ITC in March; therefore, we found it unnecessary to respond to the DoC enquiries,” one of the sources said.

Industry sources said Indian manufacturers plan to argue before the ITC that their exports are competitively priced and not dumped, and that the surge in shipments reflects supply chain realignments and demand dynamics rather than unfair trade practices.

‘Non-Cooperation by Mandatory Respondents’: US Commerce Department

The sources cited were responding to preliminary findings by the US Department of Commerce, which flagged what it described as “non-cooperation by mandatory respondents”, Adani group entities—Mundra Solar Energy Ltd and Mundra Solar PV Ltd, according to the investigation report seen by Moneycontrol.

"We preliminarily determine that these non-responsive mandatory respondents (i.e., Mundra Solar Energy and Mundra Solar PV) withheld necessary information that Commerce requested, failed to provide information within the established deadlines, and significantly impeded this proceeding by failing to respond to Commerce’s Initial Questionnaire, either in whole or in part by the applicable deadline," the preliminary affirmative determination report of the department said.

Because these companies failed to provide a complete response to the Initial Questionnaire and formally withdrew from the investigation on November 21, 2025, the agency applied the "adverse facts available" (AFA) standard. Under this standard, Commerce determined that thesecompanies withheld requested information and significantly impeded the proceeding, leading to an adverse inference that they used and benefited from every investigated subsidy program,  that are inconsistent with World Trade Organization (WTO) rules, according to the document.

Responding to these observations, one of the sources cited said the commerce department’s findings were only procedural and the ITC was the final authority.

"The interference of the commerce department is only procedural, and the final decision rests with the ITC, hence the industry decided to withdraw support from the inquiry," the source added.

‘Massive Imports’ of Solar Cells Alleged by US

Meanwhile, the Commerce Department also preliminarily determined “critical circumstances” for Mundra Solar, a legal finding that allows authorities to impose duties retroactively if imports surged ahead of the probe. According to the report dated February 20, the authorities concluded that there was a reasonable basis to believe that subsidies received by Mundra Solar — specifically for export-contingent schemes such as the Advance Authorization Program (AAP) and the Duty-Free Import Authorization (DFIA) scheme — are inconsistent with the WTO’s Subsidies and Countervailing Measures (SCM) Agreement.

Adani did not immediately respond to requests for a comment.

Further, based on “adverse facts available” (AFA), Commerce determined that the company had shipped “massive imports” of solar cells over a relatively short period, defined as an increase of at least 15 percent.

The cumulative adverse findings resulted in a steep preliminary countervailing duty (CVD) of 125.87 percent being imposed on the company as well as other players.

Case Started in July 2025

The case was initiated in July 2025 after the Alliance for American Solar Manufacturing and Trade — which includes Hanwha Qcells, First Solar and Mission Solar — filed a countervailing duty petition, arguing that subsidised imports threaten domestic manufacturing investments. In August, the US ITC found that imports from India, Laos and Indonesia were injuring US producers of crystalline silicon photovoltaic (CSPV) cells and modules.

The development is significant for Indian exporters. As of March 2025, Mundra Solar’s export revenue of Rs 3,880 crore accounted for about 61 percent of its total operating revenue of Rs 6,352.6 crore for FY25.

According to Mercom, Indian solar module and cell exports rose 26.1 percent quarter-on-quarter to $267.6 million in Q1 2025, with the US accounting for 99.5 percent of total exports.