Waaree Energies share price fell 7.7% amid concerns over the new US administration’s potential tariffs on solar imports, affecting renewable energy stocks. The anticipated policy changes under President Trump, including higher tariffs and a shift towards fossil fuels, could hinder solar capacity growth and impact Indian exporters. However, US manufacturing plants may mitigate some risks for companies like Waaree.
Shares of Waaree Energy fell as much as 7.7% to Rs 2,468 on Wednesday amid widespread selling in energy stocks amid widespread selling in energy stocks amid hopes of increasing solar energy production under US President Donal Trump’s administration.
Under the Trump administration, the public policy changes, which include high emphasis on all panels, in-person and seating, along with the possible inclusion of South Eastern Asian countries in these plans, would start a boom in Akshaya Energy shares.
The wider energy sector also faced significant decline. The shares of basic green energy on the seed side fell by 3.5% to Rs 1,007.55, premium energy fell by 6% to Rs 1,104.40, entree green energy fell by almost 2% to Rs 115.25 and Suzlon Energy fell by more than 4% to Rs 55.05.
Trump’s energy agenda has pushed market sentiment further into recession as a major shift from the Biden administration’s water supply-focused policies. Analysts speculate that Trump’s plan to weaken the Increasing Efficiency Act (IR) – a historic law designed to speed up self-energy growth – could slow down overall capacity expansion in America. This will have a negative impact on Indian industries including standard energy and premium energy which are highly dependent on America’s demand for power modules.
Besides this, Trump’s promotion of high tariff on total energy imports and the subsequent removal of Paris water quality from the economy indicate further changes in the dominance of living resources. His administration is also expected to promote oil and gas development in a progressive manner, which will potentially sideline the renewable energy projects.
Indian module manufacturers like Waaree Energy and Premium Energy are facing a dual challenge. Slowdown in overall capacity expansion in the US could impact export opportunities. However, growth in the US could also increase module prices, which would benefit Indian companies setting up manufacturing facilities in the US.
Both premium and premium energy companies are setting up plants in the US to reduce risks and take advantage of local demand. Analysts say that high rates can improve the viability of these US entities, but they may also make Indian exports less competitive.
Trump’s focus on maximizing oil and gas production while cutting support for renewable energy technologies has upended global markets. Environmental groups have vowed to challenge these regulatory overturns, opening up space for legal and political battles that could undermine the prospects of the global energy sector.
Currently, Indian energy companies and their investors are facing a tough road as they are having to change policies in one of their major export markets.
