Waaree Energies Faces US Probe Over Alleged Chinese Solar Imports

US customs officials announced on Thursday that they are investigating whether Indian solar manufacturer Waaree Energies has sidestepped American tariffs by rebranding Chinese-made solar cells and modules as originating from India. The probe raises new questions about global solar supply chains and comes even as Waaree, through its US subsidiary, has been pocketing significant module orders in the US.  The announcement sparked a 5% fall in the stock price of Waaree Energies at the BSE and NSE on Sep 26.
Waaree Energies is not just India's largest module manufacturer, but also the leading module exporter to the US until recently from India. 

Customs Probe Initiated

The US Customs and Border Protection (CBP) revealed the investigation in a memo sent to attorneys representing Waaree and the American Alliance for Solar Manufacturing Trade Committee, a coalition of domestic solar companies.

According to the agency, there is "reasonable suspicion" that Waaree failed to properly declare some of its imports, which should have been subject to antidumping and countervailing duties long imposed on solar equipment from China and other Asian countries.

As an interim measure, CBP stated that it was taking steps to safeguard US revenues, including requiring Waaree to make cash deposits while the probe is ongoing.

Rising Indian Solar Exports

The investigation comes at a time when Indian solar exports to the US have surged. Imports of solar panels from India climbed significantly in the past two years, particularly after the US Commerce Department levied duties on Southeast Asian countries that had previously dominated solar module supplies. 

The US has maintained tariffs on Chinese-made solar products for over a decade, which has pushed American developers to diversify sourcing.

Earlier this year, the American Alliance for Solar Manufacturing Trade Committee urged the Commerce Department to consider new duties on imports from India, Indonesia, and Laos, citing similar concerns over trade circumvention. The Alliance includes US solar majors such as First Solar and Qcells.

Waaree’s Recent US Expansion

Waaree has been expanding its footprint in the United States. Recently, its US arm, Waaree Solar Americas, secured a 452-megawatt (MW) order from an international developer and operator of utility-scale solar and storage projects.

The announcement came shortly after the US Department of Energy issued its interpretation of what constitutes a “foreign entity of concern” (FEOC) under the Bipartisan Infrastructure Law. This regulation is considered critical for determining supply chain eligibility for federal funding and incentives.

Amid rising attention over Chinese-linked imports, Waaree’s leadership has previously stated that the company’s US shipments are free from FEOC-designated inputs.

“In the entire value chain - from polysilicon through ingots and wafers, to cells - everything is free of FEOC-linked material,” said Amit Paithankar, whole-time director and chief executive officer of Waaree Energies, during a recent investor call.