How will U.S. exit affect solar alliance?, Pg8

Key Highlights:

• The U.S. announced its withdrawal from the International Solar Alliance (ISA) on January 7, citing that the body no longer served American interests.
• The ISA, established in 2015, aims to promote affordable solar power, particularly in developing nations, with over 120 member countries.
• The U.S. contributed approximately $2.1 million to the ISA over three years, representing about 1% of the alliance's total funds.
• India's solar module manufacturing capacity reached nearly 144 gigawatts as of late 2025, while solar cell manufacturing capacity was around 25 gigawatts.

Detailed Insights:

• The U.S. exit from the ISA is unlikely to significantly impact India's solar industry due to India's growing domestic manufacturing capacity and reliance on domestic demand for solar projects.
• India's solar projects are primarily driven by domestic demand, supported by long-term contracts with state utilities and central agencies, making them less vulnerable to external factors.
• The ISA serves as a crucial tool for India's climate leadership and diplomacy in the Global South, facilitating market access and supporting Indian companies abroad.
• The primary economic risk lies in Africa and other developing countries that heavily rely on international cooperation and affordable loans for solar projects, where the U.S. exit may cause lenders to be more cautious.
• India imported about $1.7 billion worth of Photovoltaic (PV) modules from China in FY25, highlighting China's dominance in high-efficiency solar module production.

Key Concepts Involved:

• International Solar Alliance (ISA): An organization established in 2015 to promote solar power adoption, especially in developing countries.

International Solar Alliance

• Photovoltaic (PV) Modules: Devices that convert sunlight directly into electricity using semiconductors.
• Global South: A term used to refer to countries in Africa, Asia, and Latin America that are often characterized by lower levels of economic development.