India Has An Opportunity In Solar Cell Manufacturing In US Market: Devesh Sharma, Navitas USA

India Has An Opportunity In Solar Cell Manufacturing In US Market: Devesh Sharma, Navitas USA

The Inflation Reduction Act in the USA has paved the path for a number of Indian solar manufacturing firms to set up manufacturing units in the US market. Prominent among them is Gujarat-headquartered Navitas Solar, which announced a strategic collaboration in the US earlier. The firm, which is expanding its global footprint, will make its presence felt in North America through a new entity, ‘Navitas USA by Colby’, and manufacturing U.S.-made modules through its 1.2 GW facility under development in the American Midwest. Navitas USA by Colby is the first Black owned solar manufacturing facility in the US.

Devesh Sharma, Business Head, Navitas USA provides an insight into the US market and the firm’s plans there. 

Indian solar manufacturers are eyeing the US market, which has emerged as a prominent exports destination. Several manufacturers are also setting up manufacturing units in the country. What makes US the hotspot that it is today?

The USA market is in great demand currently because there is a scarcity to feed the solar modules in solar power projects and to add to the challenge, there are not enough manufacturing facilities in the US. Hence, the US is constantly looking for supply chain assurance and relying on other countries. India has emerged as a primary market to fill the gaps in its supply chain against such a backdrop, given that China is unable to supply due to the restrictions imposed by the federal government. This places India in a very advantageous position. Specifically, India is getting demand from the US for monofacial, monofacial with transparent back sheets, bifacial modules. Navitas manufactures all these in India.

Indian firms are placing their bets on not just module manufacturing facility in the US, but also solar cell manufacturing facilities since the Inflation Reduction Act (IRA) has multiple benefits to offer under its ambit on solar cell manufacturing.

The Inflation Reduction Act introduced in the USA has given a big push to capacities and within the next two to three years it is being said that the USA is going to be domestically reliant. How will this impact Indian manufacturers?

It will take some time before the manufacturing capacities in the USA go online and the USA has its own set of major challenges concerning manpower management, the trade manpower. It will take a few years before these challenges are overcome. In the meantime, Indian firms can keep leveraging the benefits of supplying for the US’ supply chain.

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What are the supply chain constraints in the USA and the gaps that the Indian developers can fill?

Manufacturers can enjoy benefits that the Inflation Reduction Act offers if a product boasts 40% in-house manufacturing. The US, however, has a major vacuum in cell manufacturing, where India can play an essential role.

What are the capacities right now that Navitas Solar is eyeing in the USA market?

We are setting sights on the Midwest of the USA in the state of Illinois, which has been among the leaders in solar adoption. It is a huge facility. Initially, the first phase will be of 1.2 gigawatts and subsequently, in the year to come, we will add another 1.2 gigawatts. We will keep on adding manufacturing facilities coupled with 1.2 plus 1.2 gigawatts on a yearly basis.

Within the USA, certain hotspots have emerged, one of them is of course Illinois, and then there is Ohio as well. Why have certain regions become a hub for solar manufacturing?

Many states are offering incentives. Illinois and Ohio are among them. The state also promises human resource training programs in Illinois (Clean Energy Jobs Act). The biggest advantage for Navitas is that the firm is the first black majority shareholder company. The federal government has several project openings for Black owned businesses, and we will be able to qualify. We qualify for a tier-2 manufacturing facility, where we enjoy plenty of incentives on the utility front, on the manpower front and on the state programs as well.