India’s Solar Industry & International Solar Alliance (ISA)
Context:
On January 7, the U.S. government announced its withdrawal from 66 international organizations, including the International Solar Alliance (ISA), citing that they no longer served American interests
About International Solar Alliance (ISA):
International Solar Alliance (ISA) is a global initiative launched in 2015 by India and France at the COP21 summit (Founding Conference held in 2018) in Paris to promote solar energy as a sustainable solution for energy access and climate change.
Headquartered in India, the ISA is the first international organization established in the country.
It aims to make solar power affordable and accessible, particularly for developing countries.
With 125 Member and Signatory Countries, the ISA plays a key role in advancing global solar cooperation, enhancing energy security, and supporting the transition to cleaner energy systems.
ISA Reports on Global Solar Trends:
Ease of Doing Solar 2025
Global Floating Solar Framework,
Global Solar Trends & Outlook 2025
India’s contribution to Solar energy:
India ranks fourth in renewable energy installed capacity and also in wind power.
It ranks third in solar power generation.
installed solar capacity has crossed 120 Gigawatt. This is an important step in achieving India’s long-term goal of reaching 500 Gigawatt of non-fossil capacity by 2030
The Pradhan Mantri Kisan Urja Suraksha evam Utthan Mahabhiyan is ensuring energy security for farmers, along with honouring India’s commitment to increase the share of installed capacity of electric power from non-fossil-fuel sources to 40 percent by 2030.
Impact of U.S. Exit:
The exit is expected to have minimal financial impact as the U.S. contributed only about 1% of the Alliance's total funds.
Indian officials have confirmed that day-to-day operations and capacity-building programs will continue uninterrupted.
Resilience of India’s Solar Industry:
As of late 2025, India’s solar module manufacturing capacity stood at 144 GW, and cell manufacturing at 25 GW.
India does not depend on the U.S. for solar panels or key equipment; solar power will not become more expensive.
The sector relies more on domestic production and imports from China (approx. $1.7 billion in PV modules in FY25).
Indian projects are driven by domestic demand and backed by long-term contracts with state utilities, ensuring immunity from U.S. policy shifts.
The real risk lies in Africa and poorer developing nations that rely on international cooperation for cheap loans
The U.S. withdrawal may make global lenders more cautious.