The solar manufacturing industry is a rapidly growing sector driven by the global shift towards renewable energy. It involves the production of solar panels, photovoltaic cells, inverters, and other components essential for solar energy systems. With increasing concerns over climate change, many countries, including India, are prioritizing solar energy as a clean and sustainable alternative to fossil fuels.
The industry is witnessing advancements in technology, such as higher-efficiency solar panels and cost-reduction strategies, which make solar energy more affordable and accessible.
As governments incentivize green energy and reduce tariffs on solar imports, the solar manufacturing industry is expected to play a key role in meeting global energy demands while contributing to a cleaner environment.
Proposed Subsidy Plan
India is finalizing a $1 billion capital subsidy initiative to strengthen its solar manufacturing sector, according to sources. This move is part of a broader strategy to reduce reliance on China and capitalize on the global shift toward renewable energy.
The proposal, put forward by the Ministry of New and Renewable Energy, aims to support domestic producers of wafers and ingots, which are among the most vulnerable segments of India’s solar industry, according to sources who asked to remain unnamed because the discussions are private.
They said that the plan has the support of key advisers in Prime Minister Narendra Modi’s office and is likely to be presented to the cabinet for approval in the coming months.
India’s Manufacturing Capacity
India depends largely on China for solar equipment, which poses a risk to its energy security. While the country has expanded its production of solar modules and cells, the manufacturing of wafers and ingots is still limited to just 2 gigawatts, produced by Adani Enterprises Ltd. According to BloombergNEF, India has over 71 gigawatts of module capacity and nearly 11 gigawatts of cell capacity.
Benefits of plan
The subsidy plan will reduce India’s reliance on Chinese solar imports, strengthen domestic manufacturing, and create new job opportunities. It will also lower the cost of solar equipment, making renewable energy more affordable. The plan supports India’s renewable energy goals and positions the country as a competitive player in the global solar market.
Here is the List of the stocks having capex for Backward Integration
Waree Energies Limited
Waree is a leading Indian solar solutions provider, specializing in the manufacturing of solar modules, inverters, and other components for renewable energy systems. The company offers end-to-end solar solutions across residential, commercial, and industrial sectors.
The company has an Order book of 26.5 GW to date valued at around ~ Rs 50,000 Crores and By FY27, Waaree Energies Limited intends to achieve 21 GW of Module Manufacturing, 11.4 GW of Solar Cell manufacturing, and 6GW of Ingot.
The company has made strategic investments in key areas, including Rs. 551 Cr in Green Hydrogen & electrolyzer, Rs. 2,073 Cr in batteries, Rs. 650 Cr in renewable power infrastructure, and Rs. 130 Cr in inverters.
Additionally, the company received a Letter of Approval (LOA) for a 300 MW electrolyzer manufacturing unit and is awaiting an LOA for 90 kT green hydrogen production.
Premier Energies Limited
Premier Ltd is an Indian manufacturing company with diverse business operations, including automotive components and precision engineering. It is known for its focus on high-quality production and innovation in the engineering sector.
The company is one of the first Indian companies to manufacture cells and has done Ground-mounted, rooftop systems, and solar pump projects. The company expects Expansion to 7 GW capacity by Q1 FY 2027 and Expansion to 9.1 GW capacity by Q4 FY 2026.
Tata Power Company Limited
Tata Power is one of India’s largest integrated power companies, involved in the generation, transmission, and distribution of electricity and the company is also expanding its renewable energy portfolio, with a strong focus on solar and wind energy projects.
Its 4.3 GW solar cell and module manufacturing plant is now fully operational. The module facility is operating at full capacity, while the first 2 GW cell production line is in the process of stabilizing. The second production line is expected to begin operations in November and reach full capacity by December.
Written by Sridhar J
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