In a major boost to India's domestic solar manufacturing ambitions, Hyderabad-based Premier Energies has unveiled a massive expansion plan worth ₹11,000 crore. The company aims to more than double its annual production capacity for solar cells and modules, positioning itself to become a leading global integrated player outside of China.
Massive Capacity Expansion in Telangana and Andhra Pradesh
According to Vinay Rustagi, Chief Business Officer (CBO) of Premier Energies, the company currently manufactures 3.2 gigawatts (GW) of solar cells and 5.1 GW of modules annually from its four units near Hyderabad. The ambitious new plan will see this capacity surge to 10.6 GW for cells and 11.1 GW for modules.
The expansion will be executed by adding 7.4 GW of cell manufacturing capacity in Andhra Pradesh and 6 GW of module capacity in Telangana. Rustagi confirmed the plans in an interaction, citing the need to meet the rapidly growing demand for solar equipment in India and abroad.
Funding and Backward Integration Strategy
The colossal ₹11,000 crore investment will be funded through a mix of sources. The company had previously raised ₹1,300 crore through its Initial Public Offering (IPO) last year. Furthermore, ₹2,200 crore in debt has been secured from the state-owned Indian Renewable Energy Development Agency (IREDA). The remaining balance will be covered through internal accruals.
In a strategic move towards full vertical integration, Premier Energies is also planning to foray into the manufacturing of ingots and wafers. These are critical upstream components in the solar panel supply chain, where cells are made from wafers, which in turn are sliced from ingots. This backward integration is designed to make the company's operations more resilient and aligns with the Indian government's push for self-sufficiency in solar manufacturing.
Driven by Robust Demand and Policy Support
The expansion is firmly rooted in strong market fundamentals. Rustagi highlighted that the company has a robust order book of ₹13,000 crore in the domestic market alone, with production slots booked for the next year. Demand for its modules is growing both in India and internationally, with past exports to markets like the United States.
A key driver for this domestic demand is the government's Approved List of Models and Manufacturers (ALMM) framework, managed by the Ministry of New and Renewable Energy (MNRE). This policy initiative supports India's 'Make in India' vision by promoting local manufacturing, reducing import dependency, and creating employment. A significant portion of Premier Energies' existing cell capacity is approved under this framework, providing a solid foundation for expansion.
This large-scale investment by Premier Energies marks a significant step in India's journey towards becoming a global hub for renewable energy equipment manufacturing, reducing reliance on imports and building a resilient, homegrown solar supply chain.
