Indian solar module manufacturer Solex Energy will invest $1.5 billion over the next five years to expand manufacturing as it targets exports to the United States, a top executive told Reuters on Wednesday.
Solex currently operates a 4-gigawatt module manufacturing facility in the western state of Gujarat and plans to scale up its capacity to 10 GW. It also aims to establish 10 GW of cell manufacturing and 2 GW of ingot and wafer production.
The company will raise funds in stages and is nearing a 5 billion-rupee ($56.9 million) fundraise from institutional investors in the coming weeks.
“The U.S. is the largest market in the world for solar products, and only India can currently offer cost-effective alternatives,” Managing Director Chetan Shah said, citing high anti-dumping duties on Chinese products.
The United States accounts for 90% of India’s solar module exports, according to industry officials and analysts.
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However, U.S. tariffs of up to 50% on solar panel shipments from India, along with potential anti-dumping duties, are expected to add pressure to India’s existing oversupply of modules next year as domestic project bidding slows, industry officials said.
Shah said the company is monitoring developments on tariffs but remains confident that Solex can serve the U.S. market by producing key components, such as cells, wafers, and ingots, domestically, ensuring a completely non-Chinese supply chain.
The company, which does not have a presence in the U.S., has formed a team to study the market and scout for opportunities.
Separately, Solex said on Wednesday that it will partner with Germany’s ISC Konstanz for research, development and technological collaboration in solar cell manufacturing, as it looks to diversify its technical dependence beyond China.
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