Synopsis:
Solarium Green Energy jumped sharply after signing a 10-year Licensing Agreement with DRDO’s ARDE and DIHAR for solar thermal technology to provide space heating in cold regions like Ladakh.
The shares of this leading integrated solar solutions provider are in focus after signing a significant contract with DRDO for a niche segment that can largely benefit the company in the future. In this article, we will discuss more about it in detail.
With a market capitalisation of Rs 792 crore, the shares of Solarium Green Energy Ltd made a day high of Rs Solarium Green Energy Ltd per share, up by 5 percent from its previous day closing price of Rs 377 per share. Post its debut on the Stock exchange in February 2025, the stock has delivered a robust return of 71 percent.
About the announcement
Solarium Green Energy Limited (SGEL) has officially signed a Licensing Agreement for Transfer of Technology (LAToT) on September 2, 2025, with the Armament Research & Development Establishment (ARDE) and the Defence Institute of High-Altitude Research (DIHAR), both part of the Defence Research & Development Organisation (DRDO) under the Ministry of Defence, Government of India. This agreement focuses on transferring solar thermal technology aimed at creating a system for heating shelters in cold environments.
The solar thermal system is tailored specifically for high-altitude areas like Ladakh, Uttarakhand, and the Northeast, where the biting cold makes indoor heating a necessity. At present, most heating needs in these regions are met using kerosene or diesel systems, which are not only expensive but also polluting and reliant on fossil fuels.
The innovative technology employs evacuated tube solar thermal collectors to capture solar energy, which is then stored and distributed using thermic fluids and phase-change materials. Additionally, a heat pump unit is included as a backup for those cloudy days.
Trials conducted by DIHAR in Leh over three consecutive winters from 2022 to 2024 have demonstrated outstanding performance, effectively replacing a diesel boiler system that previously consumed 18 liters of diesel per hour to heat an office shelter.
After these successful trials, DIHAR recommended transferring this cutting-edge technology to industrial partners for broader commercialization. Solarium successfully navigated the bidding process and has now secured a non-exclusive license for 10 years to manufacture and sell this technology in India.
The license was granted for a payment of Rs. 59.32 lakh plus applicable GST. Products produced under this license will be supplied to the Indian Armed Forces and various central, state, and UT government agencies.
There will be no royalty on sales to government and defense entities, while a 2 percent royalty will apply to sales in the Indian market and exports, subject to DRDO’s approval.
Solarium has already landed a few projects in the Ladakh region and is looking forward to more orders from the Indian Army in the upcoming months. With just a select few companies receiving this technology transfer, Solarium is gaining a solid competitive advantage in a niche, high-value market and plans to expand this business as a distinct vertical over the next two to three years.
This agreement positions Solarium Green Energy Limited to play a crucial role in delivering sustainable and efficient heating solutions for India’s defense and government sectors in extremely cold regions, marking a strategic move in the company’s growth plans.
Written by Satyajeet Mukherjee
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