5 Indian Solar Firms With Plans To ‘Make In USA’

Solar, Supply Chain And Scaling Manufacturing: Indian Firms Pivot To The USA

The Solar Energy Manufacturers for America Coalition (SEMA) released a report this year revealing that Chinese-headquartered companies now produce 99% of the world’s solar wafers and over 80% of the world’s polysilicon. These two components alone account for more than half the value of a solar panel.

To counter Chinese companies’ hegemony over solar component manufacturing, the US government has introduced several new acts. The CHIPS Act (Creating Helpful Incentives to produce semiconductors)  and the IRA are game-changers in the tools they provided to the Administration, by offering an unprecedented amount of  subsidies and support to make in the US. The Inflation Reduction Act (IRA) was signed into law in 2022.

IRA As A Panacea

Additionally, according to SEMA’s report, domestically produced solar modules can be roughly 30%-50% more expensive to produce than imported ones. Various provisions in the IRA aim to reduce this gap by promoting economies of scale and vertical integration. Focusing investments on developing the new equipment, knowledge, and workforce needed for a strong domestic supply chain can further reduce these costs over time.

Seeking Collaboration With Indian Solar Firms

Ever since the IRA was introduced by the US in 2022, various Indian companies have also tried to counter China’s control over the solar energy supply chain. According to Institute for Energy Economics and Financial Analysis (IEEFA) report, “The US and other overseas markets, such as Europe, play an essential role in the growth of domestic PV manufacturing in India. The US has traditionally been the largest export destination for Indian PV products. The PV module exports from India to the US have grown exponentially recently (16x in the fiscal year (FY) 2023 vis-à-vis FY2022). In FY2023, India exported nearly US$1 billion worth of PV modules to the US, a share of around 97% of the entire global module exports out of India.”

To make the most of the opportunity created by this forthcoming demand-supply gap, several Indian manufacturers are looking to set up module lines in the US and cell or ingot/wafer lines in India. Indian PV manufacturers such as Vikram Solar (2GW) and Navitas Solar (1.2GW) have already announced plans to set up module capacities in the US

Some of the key Indian companies that have shared their plans to develop solar manufacturing capacity in India or are listed below:

1. Waaree Energies
2. Saatvik Solar
3. Premier Energy
4. Vikram Solar
5. Navitas Solar

#1 Waaree Energies

Mumbai-based Waaree Energies (Waaree), a major supplier to the USA, has plans to establish its first US manufacturing facility in the Houston area. The facility, located in the town of Brookshire, will have the initial capacity to manufacture 3 gigawatts (GW) of solar modules annually by the end of 2024.
Waaree plans to invest up to $ 1 billion over the next four years to scale its annual module manufacturing production up to 5 GW by 2027, making it one of the largest solar module manufacturing facilities in the US Waaree also plans to add an integrated US-made solar cell facility that is expected to be operational by 2025.

In total, Waaree’s new facility is expected to create over 1,500 total jobs in the US when at full capacity. Till date, Waaree has supplied over 4 GW of modules from its current Indian facility to US customers. Its ambitious US expansion benefits from the long-term supply agreement with SB Energy. Waaree also has plans to supply multi-GWs of solar modules to SB Energy over the next 5 years.

#2 Saatvik Solar

Indian panel manufacturer Saatvik in 2023, shared its plans for a 1.5-GW factory in the USA. Haryana based Saatvik said it is exploring options to open a 1.5-GW panel manufacturing plant in the United States. Saatvik already supports a 3-GW plant in Haryana, India and is also developing a new 2.5-GW panel and cell facility in Gujarat, India.

The US factory is expected to produce TOPCon modules and be operational by the second half of 2024. Saatvik produces mono- and bifacial mono-PERC solar panels for the utility, commercial, and residential markets in India. 

#3 Premier Energies

This year in 2024, Heliene, Inc., a customer-first provider of North American-made solar PV modules, and Premier Energies, India’s 2nd largest solar cell manufacturing company, have recently announced their joint plan for a US-based joint venture to create a solar cell manufacturing facility in the US. Under the terms of their agreement, the new facility will produce an annual aggregate capacity of 1 GW NTyp cells to supply Heliene’s US cell requirement as well as Premier’s. With a successful IPO behind it, Premier Energies is well placed to move on its plans now.

With this joint venture and new cell plant, the companies are investing in the growing US solar industry and capitalizing on important incentives and tax credits for domestic clean energy manufacturing introduced under the Inflation Reduction Act (IRA) of 2022.

Heliene currently sources solar cells from PEPPL’s Hyderabad facility for use in module manufacturing at its Mountain Iron, MN location.

#4 Vikram Solar

Vikram Solar, Phalanx Impact Partners, and Das and Co. in 2023, entered into a joint venture to invest upto $1.5 billion to scale vertically integrated production of American-Made Solar

This partnership led to the formation of a new US joint venture with majority US-owned and operated company – VSK Energy LLC (VSK). They plan to invest up to $1.5 billion to develop a vertically integrated solar manufacturing operation in the United States. With two planned projects, VSK extends Vikram Solar’s solar manufacturing experience to the United States with financial support from private equity firm Phalanx Impact Partners and Das & Co.’s. 

The first phase of the investment consists of a $250 million investment to develop an American solar photovoltaic (PV) module manufacturing facility in a recently completed building at 76 Commerce Center in Brighton, Colorado, which is owned by Mortenson Properties and Hyde Development. VSK Energy expected the facility to commence operations in 2024 with an initial capacity of 2 Gigawatts (GW) in solar PV modules and planned expansion of up to 4 GW.

#5 Navitas Solar

Last year, in 2023, Navitas Solar announced its partnership with Sustainable Equity, Colby Solar, Pruitt & Associates, and Energized Ventures with support from law firms Husch Blackwell, Bricker Graydon, and consultants Attracting Resources. This partnership was formed to expand the Gujarat-based company’s global footprint through a strategic collaboration with US key local partners. This partnership aims to bolster Navitas Solar’s international presence by distributing Navitas Solar modules in North America through a new entity, Geosol Global Distribution, and to manufacture US-made modules through its 1.2 GW facility under development in the American Midwest. 

Another manufacturer worth mentioning is Emmvee, which is also actively exploring the possibilities of a US manufacturing setup. With a strong record for its quality at its 3 GW facility in India, which has been recognised worldwide, Emmvee is another name to watch,  

Conclusion

As more US companies look to expand their supply chains away from China, Indian firms will play a key role in ensuring enough of the new manufacturing that comes up in the US is from ‘friendly’ countries, and not China, with whom a respite from the building trade war seems distant for now. However, it needs to be kpt in mind that Chinese firms are also moving aggressively to take advantage of the IRA incentives, and by some estimates, could account for as much as 50% of total manufacturing in the US linked to the act. That’s a point worth pondering for the US administration.