The Hindu: Published on 27th Jan 2026:
Why in News?
In January 2026, the United States announced its withdrawal from 66 international organisations, including the International Solar Alliance (ISA), stating that they no longer aligned with U.S. interests. This raised concerns about the future of global solar cooperation, especially because ISA is headquartered in India and plays a major role in promoting solar energy in developing countries.
What is the International Solar Alliance (ISA)?
The ISA was launched in 2015 by India and France during the Paris Climate Conference. It is headquartered in Gurugram, India, and has over 120 member countries. Its aim is to promote solar energy by helping countries access finance, reduce investment risks, and strengthen technical capacity. The ISA does not build projects directly but facilitates solar deployment worldwide.
Impact of U.S. Exit on ISA:
The U.S. joined ISA only in 2021 and contributed about $2.1 million, which is around 1% of total funding. Therefore, its exit does not significantly affect ISA’s finances or functioning. India has clarified that ongoing projects, training programmes, and capacity-building initiatives will continue as before.
However, the withdrawal has a symbolic impact, as it weakens global climate cooperation and may affect investor confidence in some regions.
Impact on India’s Solar Sector:
India’s solar sector remains largely unaffected because:
India has developed strong domestic manufacturing capacity (about 144 GW of modules).
Solar equipment imports mainly come from China, not the U.S.
India’s solar projects are backed by domestic demand and long-term power purchase agreements.
Hence, solar power prices will not increase, and consumers will not face any impact.
Impact on Investments and Jobs:
Solar investments in India are driven by internal demand, government policies, and private funding rather than U.S. support. Employment in the solar sector is also secure because most jobs are in domestic manufacturing, installation, and operations.
In fact, reduced U.S. dependence on China could open new export opportunities for Indian solar manufacturers.
Where Is the Real Concern?
The main impact will be felt in Africa and poorer developing countries, which rely heavily on international finance and cooperation. The U.S. exit may:
Slow funding approvals
Increase investor caution
Delay solar projects in vulnerable regions
This could weaken global efforts toward clean energy transition.
Conclusion:
The U.S. exit from the ISA does not threaten India’s solar growth or energy security. India’s solar sector remains strong, competitive, and self-reliant. However, the decision may slow renewable energy expansion in developing nations and weaken global climate cooperation.
For India, this moment represents not a setback but a test of leadership in guiding the global solar transition.
