U.S. Exit from ISA: Impact on India and Global Solar
U.S. exit from ISA poses challenges for global solar growth, especially in developing nations.
Photo by Aron Schmitz
Background Context
Why It Matters Now
Key Takeaways
- •ISA: Promotes solar power in developing countries
- •U.S. exit: Limited financial impact on ISA
- •India: Solar industry remains secure
- •Risk: Slower solar growth in Africa
- •India: Key climate leadership role
Different Perspectives
- •Some argue U.S. exit signals declining commitment to climate action.
- •Others believe ISA can thrive with other nations' support.
Key Facts
ISA established: 2015
ISA HQ: India
U.S. contribution to ISA: ~1%
India's solar module capacity: ~144 GW (2025)
UPSC Exam Angles
GS Paper II: International Relations - Impact of policies and politics of developed countries on India's interests.
GS Paper III: Economy - Infrastructure: Energy, Investment models.
GS Paper III: Environment - Conservation, environmental pollution and degradation, environmental impact assessment.
Visual Insights
ISA Member Countries
Map showing countries that are members of the International Solar Alliance. The highlighted region shows countries between the Tropic of Cancer and Capricorn.
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Frequently Asked Questions
1. What are the key facts about the International Solar Alliance (ISA) that are important for the UPSC Prelims exam?
Key facts for Prelims include: The ISA was established in 2015. Its headquarters are located in India. The U.S. contribution was only about 1% of the ISA's total funds. India's solar module manufacturing capacity reached approximately 144 GW in late 2025.
Exam Tip
Remember the year of establishment and location of headquarters for direct questions.
2. What is the International Solar Alliance (ISA) and why is it important in the context of global renewable energy?
The ISA aims to promote affordable solar power, particularly in developing countries. It is important because it facilitates international cooperation in solar energy, addresses climate change, and promotes sustainable development by increasing access to clean and affordable energy.
Exam Tip
Understand the core objective of ISA and its role in achieving Sustainable Development Goals.
3. How might the U.S. withdrawal from the ISA affect investor confidence in the global solar market, particularly in developing nations?
The U.S. withdrawal could potentially decrease investor confidence, especially in Africa and poorer developing countries, making lenders more hesitant to invest in solar projects. Although the U.S. contribution was only about 1% of the ISA's total funds, its participation symbolized commitment and could influence other nations' investment decisions.
Exam Tip
Consider the psychological impact of a major nation's withdrawal on international collaborations.
4. What is the current solar module manufacturing capacity of India, and how will the U.S. exit from ISA affect India's solar industry?
India's solar module manufacturing capacity is approximately 144 GW as of late 2025. The U.S. exit from ISA is unlikely to directly affect India's solar industry, as it primarily relies on domestic demand and has a growing manufacturing capacity.
Exam Tip
Focus on India's self-reliance in solar manufacturing when answering questions about external impacts.
5. What are the recent developments related to the International Solar Alliance (ISA)?
Recent developments include the ISA expanding its scope beyond solar energy to include other renewable energy sources. It is also focusing on creating a global ecosystem for clean energy transition, developing common standards, promoting research and development, and facilitating access to finance for renewable energy projects.
Exam Tip
Note the expansion of ISA's scope beyond just solar energy.
6. What are the potential benefits and drawbacks of the U.S. withdrawing from the International Solar Alliance (ISA)?
A potential drawback is reduced investor confidence in global solar projects, especially in developing nations. A possible benefit, though less direct, could be that it pushes other nations to increase their commitment and funding towards the ISA's goals.
Exam Tip
Consider both the immediate and long-term consequences of such decisions.
7. What is the historical background of international cooperation in solar energy, leading up to the formation of the International Solar Alliance (ISA)?
The concept of international cooperation in solar energy can be traced back to the early 2000s, with increasing awareness of climate change and the need for renewable energy sources. The formalization of such efforts gained momentum after the 2015 Paris Agreement. The idea of a solar alliance was initially proposed by India.
Exam Tip
Understand the timeline of events leading to the establishment of ISA.
8. What are the important dates to remember regarding the International Solar Alliance (ISA) and the U.S. withdrawal for the UPSC exam?
The important dates to remember are: 2015, when the ISA was established, and January 7, 2026, when the U.S. withdrawal was announced.
Exam Tip
Create a timeline to remember the sequence of events.
9. How could the U.S. withdrawal from the ISA impact common citizens, particularly in developing countries?
The U.S. withdrawal could slow down the progress of solar energy projects in developing countries, potentially limiting access to affordable and clean energy for common citizens. This could affect their quality of life, access to electricity, and overall development opportunities.
Exam Tip
Relate international events to their potential impact on the lives of ordinary people.
10. Why is the U.S. exit from the International Solar Alliance (ISA) in the news recently?
The U.S. exit from the ISA is in the news because it signifies a shift in U.S. foreign policy towards international organizations and raises concerns about the future of global cooperation on renewable energy. The announcement was made on January 7, 2026, as part of a broader withdrawal from multiple international bodies.
Exam Tip
Understand the broader context of the U.S. decision and its implications for international relations.
Practice Questions (MCQs)
1. Consider the following statements regarding the International Solar Alliance (ISA): 1. The ISA was jointly launched by India and France on the sidelines of the United Nations Climate Change Conference (COP21) in Paris in 2015. 2. All member countries of the United Nations are eligible to join the ISA. 3. The ISA aims to mobilize over US$ 1 trillion of investment in solar energy by 2030. Which of the statements given above is/are correct?
- A.1 and 2 only
- B.1 and 3 only
- C.2 and 3 only
- D.1, 2 and 3
Show Answer
Answer: D
Statement 1 is CORRECT: The ISA was indeed launched jointly by India and France during COP21 in Paris in 2015. Statement 2 is CORRECT: Initially, the ISA was open only to countries lying wholly or partially between the Tropics of Cancer and Capricorn. However, this was amended, and now all UN member states are eligible to join. Statement 3 is CORRECT: The ISA aims to mobilize over US$ 1 trillion in investments by 2030 to facilitate the deployment of solar energy technologies.
2. Which of the following statements best describes the 'One Sun One World One Grid' (OSOWOG) initiative? A) A project to establish a single global currency for renewable energy trading. B) An initiative to connect solar energy resources across different regions to ensure a continuous supply of electricity. C) A program to provide subsidized solar panels to developing countries. D) A research project to develop more efficient solar energy storage technologies.
- A.A
- B.B
- C.C
- D.D
Show Answer
Answer: B
The correct answer is B. The 'One Sun One World One Grid' (OSOWOG) initiative aims to connect solar energy resources across different regions to ensure a continuous supply of electricity. This initiative seeks to address the intermittency of solar power and reduce reliance on fossil fuels.
3. Assertion (A): The U.S. withdrawal from the International Solar Alliance (ISA) is unlikely to significantly impact India's domestic solar industry. Reason (R): India's solar industry primarily relies on domestic demand and has a growing manufacturing capacity. In the context of the above statements, which of the following is correct?
- A.Both A and R are true, and R is the correct explanation of A.
- B.Both A and R are true, but R is NOT the correct explanation of A.
- C.A is true, but R is false.
- D.A is false, but R is true.
Show Answer
Answer: A
Both the assertion and the reason are correct. India's solar industry is indeed driven by domestic demand and has a growing manufacturing base. This makes it less vulnerable to the U.S. withdrawal from the ISA, as the industry's growth is not heavily dependent on U.S. funding or participation.