The Australian government has begun consultations on a new regulatory framework for consumer energy resources (CER) including rooftop solar energy, household batteries, electric vehicles, and smart devices.
In a notice circulated at the World Trade Organization on 29 August, Canberra said it is seeking comments on two draft papers—a prototype regulatory framework for CER, and proposed interoperability standards for devices such as solar inverters, EV chargers, energy management systems, and smart appliances.
An interoperability test refers to a technical check to see whether a device or system can seamlessly connect, communicate, and function with other systems, devices, or networks.
Unlike some WTO Technical Barriers to Trade notifications that specify when new standards will come into force and the transition period for exporters, Australia’s notification has left the timeline open-ended, with no specific date mentioned for its adoption or rollout.
This creates uncertainty for Indian exporters given the current lack of clarity on when they would need to comply with Australia’s new framework, which could limit their ability to plan investments in certification, testing, and technology upgrades.
India’s auto components and renewable energy sectors already face the heat of US President Donald Trump’s 50% tariffs on Indian goods. Australia’s new regulations could add pressure on these exporters, particularly small businesses, including because of modified manufacturing processes and increased costs.
The development also comes despite the India-Australia Economic Cooperation and Trade Agreement, which was intended to provide duty-free access to several Indian products, including solar equipment.
According to trade experts, while the FTA guarantees tariff-free entry, the new regulatory requirements function as non-tariff barriers and impose additional costs on exporters.
“The concern is that exporters may save on tariffs but lose competitiveness due to higher expenses on testing, certification, and documentation,” said Abhash Kumar, a trade economist and assistant professor of economics at Delhi University.
Compliance complications
Australia’s initiative aims to plug gaps in existing standards, set national technical requirements, ensure quality, protect consumers from deceptive practices, and promote harmonization, as per its WTO notice. However, this could complicate matters and increase costs for Indian exporters.
“For small and medium exporters, the challenge is not manufacturing capability but the added layers of certification and testing that come with new interoperability standards,” said Vinod Kumar, president, India SME Forum. “These requirements could increase compliance costs and complicate logistics, especially for companies already working on tight margins.”
Also, Indian exporters of auto parts and renewable energy equipment would need to get their products re-certified to meet Australia’s updated technical and interoperability standards for consumer energy products, said Astik Mani Tripathi, promoter and director, GP Eco Solutions India Ltd, a maker of solar inverters and energy storage systems.
“Non-compliant products will not be allowed for sale, which could disrupt the market. To succeed, Indian companies must proactively invest in R&D (research and development) to meet the new standards and work closely with Australian partners to ensure their products remain competitive and accessible,” Tripathi told Mint over phone.
India’s overall exports to Australia increased to $8.58 billion in 2024-25 from $7.94 billion in FY24 and $6.95 billion in the year before, as per commerce ministry data. Imports declined to $15.53 billion in FY25 from $16.16 billion in the year before and $19.01 billion in FY23.
The decline in imports alongside consistent export growth has helped India gradually shrink its trade deficit with Australia, although the overall balance remains negative. The gap, which stood at $12.06 billion in FY23, narrowed to $8.22 billion in FY24 and further reduced to $6.95 billion in FY25, per commerce ministry data.
Indian exports of solar photovoltaic (PV) modules rose sharply from $112.47 million in FY22 to $2.02 billion in FY24. However, in the first eight months of FY25 (April-November), the exports moderated to $809.43 million, according to information shared by minister of state for new and renewable energy and power, Shripad Yesso Naik, in the Rajya Sabha on 11 February.
