Gautam Solar to Expand Solar Module Manufacturing Capacity to 5 GW by 2025

Gautam Solar Private Limited will be expanding its solar module manufacturing capacity to 5 GW by 2025.

Gautam Solar’s Module Manufacturing Capacity to be Increased in Phases

Gautam Solar will expand its solar module manufacturing capacity to 5 GW from current manufacturing capacity of 1 GW. The company will establish a new factory in Bhiwani, Haryana for this expansion.

This expansion will be completed in three phases. Gautam solar expects that the first phase of this expansion will be completed by November 2024. Meanwhile, the second and third phase will be completed by January 2025 and April 2025 respectively.

Commenting on the company’s expansion plan, Mr. Gautam Mohanka, Managing Director of Gautam Solar, said “As India targets achieving 500 GW of renewable energy by 2030, our expansion to 5 GW of solar module manufacturing capacity by 2025 is a vital step towards contributing to this national goal”. He added that India’s solar module manufacturing capacity currently stands at 70 GW, and with this expansion, Gautam Solar is expected to contribute nearly 5% to 7% of the country’s solar total capacity.

Gautam Solar to Enter Solar Cell Manufacturing with Rs. 1,000 Cr. Investment

Apart from the expansion of solar power modules, Gautam Solar had announced in September 2024 that the company will be entering solar cell manufacturing business with an investment of Rs. 1,000 crore. The company’s upcoming solar cell plant will have an annual prodution capacity of 2 GW. This investment will be funded through the company’s Initial Public Offering (IPO) which is expected to come-up in next 12 to 18 months.

Gautam Solar will manufacture n-type TopCon solar cells at its upcoming plant and the company also targets to include its solar cells in Approved List of Models and Manufacturers (ALMM). The company’s solar cell manufacturing plant will also contribute to backward integration as it will cater to the company’s solar module production.

Highlighting his views on the company’s upcoming solar cell manufacturing plant, Mr. Mohanka had said “Our Rs 1,000 crore cell expansion plan, which will be funded through an upcoming IPO, will further position us as a leader in solar technology”. He added that expansion is not solely focused on scaling up but it also aims to drive innovation, generate new jobs, and provide solar products tailored to India’s specific environmental and economic requirements.

India’s Dependence on Solar Imports & Gap Between Solar Cell and Module Production

In 2023-24, India imported solar equipment valued at USD 7 billion, with 62.6% of these imports coming from China. Approximately 90% of solar module production in India consists of assembling imported cells, contributing only 15% local value addition. In FY24, India imported solar cells worth about USD 1.9 billion.

China dominates the solar equipment manufacturing market, controlling 97% of global polysilicon production and 80% of solar module manufacturing, making it challenging for India or any other country to compete due to China’s lower prices.

Interestingly, in March 2023, Ministry of New and Renewable Energy (MNRE) suspended the implementation of Approved List of Models and Manufacturers (ALMM). This allowed developers of large-scale, rooftop, and solar open access projects to use solar modules from manufacturers not included on the ALMM list until 31st March 2024. This suspension of ALMM and the significant decline in Chinese cell and module prices contributed to the increased solar equipment imports during FY-24.

Need to Focus on Backward Integration in Solar Module Manufacturing

There is a huge gap between India’s solar cell and solar module manufacturing capacity. India’s solar module manufacturing capacity stands at over 70 GW, whereas the country’s annual solar cell production is 7.6 GW. This can be remedied by more and more solar equipment manufacturers focusing on backward integration in their PV production process.

By entering the solar cell manufacturing business, Gautam Solar is also focusing on backward integration. As per an article by The Hindu Businessline dated 18th September 2024, Mr. Gautam Mohanka said, “Our forthcoming 2 GW solar cell manufacturing plant is aligning with MNRE’s guidelines on promoting indigenous manufacturing of solar cells. We are committed to delivering cutting-edge, reliable solar solutions that empower India’s transition to a sustainable future”.

About Gautam Solar: Gautam Solar, headquartered in New Delhi, is one of the top solar module manufacturers in India. The company has four solar module manufacturing factories in Haridwar with a collective capacity of 1 GW per annum.