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Grew Energy First Indian PV Manufacturer to Enter J&K, to Engage in Backward Integration

Grew Energy Pvt. Ltd., an Indian Renewable Energy (RE) player and manufacturer of solar modules, has become the first such company to enter Jammu & Kashmir. On 10th May 2024, the company broke ground for its solar module plant which is to come up in Kathua district of the Union Territory by 2025.

4,500 Cr. to be Invested, Kathua Plant to have 3.2 GW Module Capacity

Grew Energy’s upcoming Kathua solar module plant will be developed with an investment of about Rs. 4,500 crore, and will have a production capacity of 3.2 GW annually.

This 80-acre plant will be developed in State Industrial Development Corporation Ltd.’s (SIDCO) industrial estate in Bhagthali, Kathua.

Grew Energy’s CEO, Mr. Vinay Thadani, explained, “With establishment of our Kathua facility and our existing 2.8 GW module manufacturing facility in Jaipur, Rajasthan, Grew will achieve a total of 6 GW manufacturing capacity for modules and 2.8 GW for solar components.

Mr. Thadani added that this upcoming plant will help creating employment opportunities for the people of Jammu & Kashmir.

Company Targets Backward Integration, to Produce 2.8 GW of Solar Ingots, Wafers & Cells at Kathua

Grew Energy’s manufacturing facility will have “3 stage backward integration”, as stated by the company’s LinkedIn post dated 11th May 2024. This refers to the fact that the Kathua plant will have the capability to produce 2.8 GW of solar ingots, solar wafers and solar cells annually.

Backward Integration Key for India’s PV Manufacturing to Grow

Tata Power Solar Module Facility

As per a November 2023 report by the Information and Credit Rating Agency of India Ltd. (ICRA), India’s solar module production capacity is expected to cross 60 GW by 2025. Further, the report indicates that this growth will be backed by a substantial increase in backward integration in PV module production, which refers to solar ingot, wafer and cell manufacturing.

ICRA’s report mentions India’s solar cell manufacturing capacity is expected to increase to 25 GW by 2025 from about 6 GW as of November 2023. “However, the country will remain dependent on polysilicon imports as these capacities are likely to take longer to set up, involving a larger capital investment, the report added.

A separate report by Mercom from March 2024 states that India’s solar module capacity currently sits at about 64.5 GW, and that in 2023, the country imported 15.6 GW of solar cells.

While speaking to representatives of various Renewable Energy companies which participated in the Renewable Energy India Expo 2023, CableCommunity had learnt that as of now only few PV module manufacturers have the capability to produce their modules from scratch. The major reason for this is the rapidly evolving PV technology, which poses investment risks for manufacturers. In fact, major industry players such as Adani Solar had stressed the need for complete backward integration in PV module manufacturing at the event.

Therefore, backward integration at Grew Energy’s Kathua plant is of substantial significance not only for the company but also at a national scale.

About Grew Energy Pvt. Ltd.: Grew Energy Pvt. Ltd. is a part of the Gujarat-based Chiripal Group. Incorporated in 2022, the company manufactures solar modules at its manufacturing facility in Jaipur, Rajasthan.