Which Companies Manufacture Solar Panels in India?

The solar sector has finally become big enough to enter the political arena.

Back in 2019, we saw the current US President Joe Biden and his administration calling out Trump for imposing tariffs on China.

He literally tweeted saying tariffs on China were a bad idea.

Skip forward to present... Biden yesterday imposed a series of tariffs on goods made in China.

This includes 25% on steel and aluminium, 50% on semiconductors,100% on electric vehicles (EVs)... and 50% on solar panels.

This you? pic.twitter.com/Ft3A2kP2k8

— Catturd ™ (@catturd2) May 14, 2024

Make no mistake... this is a big positive for Indian solar players and solar panel manufacturing companies could be permanently rerated.

The high tariffs on Chinese solar panels would make them significantly more expensive in the US market. Since China is one of the largest producers of solar panels globally, this shift would create a void in the market.

This gives Indian solar manufacturers an opportunity to step in and fill this gap.

As Chinese tariffed products get more expensive, this price advantage could lead to increased demand for Indian solar panels in the US.

With increased demand, Indian solar panel manufacturers could possibly fetch higher export orders. It's basic economics... we already saw this happen with defence exports.

Apart from that, this is India's chance to tie up with global manufacturers and create long term partnerships. This situation could pave the way for US companies seeking to diversify their supply chains away from Chinese manufacturers.

Overall, it does appear that there's a long and bright runway for Indian solar panel manufacturers.

In today's editorial, we will look at the top Indian companies manufacturing solar panels in India.

Before we move on, please note that some of the Indian 'manufacturers' from the below list are buying from Chinese firms setting up in Vietnam and selling to the US.

Basically, they're buying from China and reselling it to US for a higher price... like what happens with Russian Crude time to time... there's nothing wrong about it.

Conduct thorough analysis before you decide to take on any solar stock in your portfolio as most of them are trading at sky-high valuations.

With that disclaimer out of the way, let's get started...

#1 Tata Power (Tata Power Solar)

It's obvious that we would start with Tata Power, a subsidiary of the Tata Group.

Tata Power has a wholly owned subsidiary called Tata Power Solar which specialises in solar energy services.

The company manufactures solar modules, solar cells, and other solar products, and provides EPC services for solar power projects.

It has an EPC portfolio of more than 12.8 GWp of ground-mount utility-scale, over 2 GW of rooftop and distributed ground-mounted systems, and over 2 GW of rooftop and distributed ground-mounted systems, and over one lakh solar water pumps.

It has also facilitated over Rs 35 billion (bn) of customer financing for solar projects during the last 4.5 years.

Recently, the company's management highlighted that Tata Power has a $1 billion opportunity in the solar panel manufacturing segment following Modi's solar rooftop scheme.

To capture most of the market in the next three years, the company is expanding its facilities and getting future ready to meet the domestic solar modules demand.

Tata Power currently holds 13% of the domestic solar module market, and it's planning to ramp this up to 20% with its new solar cell and module manufacturing unit in Tamil Nadu.

Tata Power has committed an investment of Rs 30 bn for this unit, that can manufacture 4 GW of solar cells and modules each year.

This new unit is expected to provide the Tata firm with a clear advantage as the rooftop solar scheme clearly mandates domestically manufactured solar cells and modules.

#2 Waaree Renewable Technologies

You probably guessed this company when you opened this article, didn't you?

Waaree Renewable Technologies has turned around a lot of heads in the investing community with its 66,000% rally in the past 5 years!

Waaree Renewable is a leading player in solar engineering, procurement and construction (EPC).

Additionally, it serves as a solar developer, engaging in financing, constructing, owning and operating solar projects.

It excels across the entire solar value chain, right from manufacturing cells/modules and solar products to executing rooftop and utility-scale solar projects.

The company has powered more than 10,000 homes through various government schemes in India and 400+ projects in India and internationally.

Between 2021-2023, Waaree Renewable Technologies' sales have multiplied 22 times. The company has turned the business around, reporting a profit after 3 years of continuous losses (2019-2021).

This surge in profits has helped the company trim down its total debt, strengthening the balance sheet.

To meet the substantially increasing demand for solar energy, it has planned to set up more than 1,000 centres for solar solutions throughout the country.

And while the stock continues to soar to new heights every few months, the company holds promising prospects for investors.

Going forward, with its established expertise and capabilities across the solar value chain, Waaree Renewable Tech is well-positioned to capitalize on the expanding opportunities within the global and domestic solar markets.

#3 Insolation Energy

Third on the list is Insolation Energy.

The company is a one-stop shop for all solar-related needs. It boasts a lineup of premium, high-efficiency solar panels, alongside top-tier batteries and PC offerings.

Additionally, it offers integrated engineering, procurement, and commissioning services (EPC), along with a suite of Original Equipment Manufacturing (OEM) services.

The solar PV modules manufactured by the company use both polycrystalline and Mono-PERC crystalline cell technology.

Currently the company operates with a solar panel manufacturing capacity of 700 megawatts (MW), It is strategizing to elevate its capacity to 1200 MW, further solidifying its position in the market.

For getting future ready, Insolation Energy has unveiled ambitious plans to significantly expand its manufacturing capacity.

The company is ramping up for a massive solar power push. By 2024, it expects a 250 MW capacity hike with advanced G2G tech, reaching 1,000 MW overall and targeting Rs 6.3 bn in revenue. Its ambitions climb further: 1,200 MW capacity by 2025 with Rs 10 bn revenue, plus a 600 MW solar cell line.

By 2026, Insolation Energy envisions a giant 2,000 MW capacity, aiming for Rs 20 bn in revenue and 1,000MW in sales, with its cell unit contributing an additional 1,000 MW capacity.

Insolation Energy's shares have jumped over 10x in the last year. The stock has been a hot favourite of investors because of its strong fundamentals and growth plans.

Over the last five years, Insolation Energy has reported a 5-year CAGR of 38% in revenue driven by significant capacity expansion.

The company's debt to equity ratio also stands comfortable at 1x.

#4 Websol Energy Systems

Next on the list is Websol Energy Systems.

Websol Energy is a leading manufacturer of photovoltaic monocrystalline solar cells and modules in India.

The company went into business as a fully export-oriented unit catering to Europe (mainly Germany and Italy) and the US. It has amassed over two decades of industry experience and is renowned for its high-quality products.

Websol offers a wide array of products ranging from 5 watts (W) to 220W, catering to the demands of home, commercial and industrial institutions.

In a significant move in 2022, Websol underwent a major overhaul, revamping its operations by scrapping old machinery and replacing its entire gross block with state-of-the-art solar cell technology.

The shift entailed moving to Monocrystalline Passivated Emitter Rear Cell (Mono PERC cells) using a different kind of wafer viz. monocrystalline wafer.

This strategic initiative enhanced its efficiency and product quality.

Excluding 2023, Websol's revenue more than doubled between 2019 and 2023. The company's strong relationships with customers have been instrumental in generating recurring orders, with over 45% of clientele having been associated with Websol for over five years.

As part of its expansion plan, Websol Energy is embarking on a significant advancement by modernizing its entire existing infrastructure with cutting-edge technology.

In the ambitious first phase, the company aims to more than double its solar energy production capacity, increasing from 250 MW to 500 MW, accompanied by a nearly equivalent rise in solar module production.

The company intends to utilize the cash flows generated from this phase to invest in the second phase, which will be established at a new manufacturing location.

#5 Swelect Energy Systems

Next on the list is Swelect Energy Systems, the flagship company of the Swelect group.

It's engaged in the sale of solar power, manufacture of photovoltaic inverters, solar charge controllers, and solar junction boxes.

Based in Chennai, the company also undertakes rooftop installation and EPC contracts for solar power project.

Even if it's not categorised as the top solar stock in India, the company is involved in the solar energy vertical for the past three decades. In the solar PV module manufacturing business, the company took plunge in the year 2013.

Swelect was known as Numeric Power Systems till 2012 when it used to make uninterrupted power systems.

It entered solar module manufacturing in 2013 when it bought into Bengaluru-based HHV Solar, which was producing 30 MW of modules a year.

As part of its expansion strategy, the company intends to triple its solar module manufacturing capacity from the current.

The government last year issued a new list of manufacturers for solar PV modules and Swelect Energy was on the list of manufacturers. Domestic solar manufacturers like Swelect stand to benefit if they get big orders.

#6 Alpex Solar

Next on this list is recently listed company Alpex Solar.

Alpex Solar is a Noida-based company with a portfolio consisting of mono-perc, bifacial, and halfcut solar PV modules, and it manufactures solar panels for large companies.

Apart from manufacturing solar panels, the company also offers many solar energy solutions such as EPC for submersible and surface categories and AC/DC solar pumps.

The primary manufacturing facility for Alpex Solar is in Greater Noida.

Alpex Solar is a well-known company with a fully automated production line in the renewable energy sector.

With the IPO proceeds, Alpex Solar plans to expand its solar manufacturing facility. Currently operating at 450MW, this facility will be upgraded to 1.2GW under the Aatmanirbhar Bharat initiative.

Plans are also underway to set up a new manufacturing unit for the aluminium frame used for solar modules.

According to the company's founder and managing director, Ashwani Sehgal, the company aims to increase its revenue to Rs 10 bn by 2025-2026.

This is an optimistic growth projection over the 2024 revenue forecast of Rs 4 bn.

The company's partnership with leading solar power companies such as Luminous, Power Grid, Indian Oil Corporation, Godrej Group, etc, presents good growth opportunities.

A key concern, however, is that most of the revenue for Alpex Solar comes from the state of Uttar Pradesh. While expanding its services and offerings to other states, the company may face resistance from the local competition.

If there are changes in the political conditions of Uttar Pradesh, it can also affect the company's results.

#7 Australian Premium

Next on the list is Australian Premium.

The company is involved in manufacturing two types of solar panels.

It manufactures monocrystalline and polycrystalline solar modules and provides EPC services for residential, agricultural, and commercial applications.

By the end of August 2023, the company had serviced 10,000+ customers with installation of solar panels, of which 9500+ have installed on roofs of residential buildings and 1300+ with solar pumps for agriculture.

At present, this is what the company's revenue bifurcation looks like with Gujarat leading the geographical charts -

• Solar Panels: 68% of revenues
• Solar Rooftop Installation - 28.5% of revenues
• Solar Pump Installation - 3.5% of revenues

Shares of Australian Premium more than doubled investors money by surging 159% on the listing day back in January 2024.

#8 Solex Energy

As the name suggests, Solex Energy is engaged in manufacturing solar panels, other renewable energy devices, and installation of systems on EPC basis.

Solar panels contribute around 95% of the revenue.

In FY23, the company's revenue shot up to Rs 1,617.1 million (m) compared to Rs 723.3 m in FY22 on the back of increased order execution in both solar panels and EPC segments.

2024 is turning out to be a big year for Solex Energy.

Its new plant at Surat will finish its first year of operation. Last year, the company spent around Rs 600 million to expand its production capacity by 600 megawatts (MW) by setting this unit.

Further, the suspension of Approved List of Models and Manufacturers (ALMM) mandate for the current year is expected to provide some relief to solar panel manufacturing companies like Solex Energy.

#9 Borosil Renewables

Next on the list is Borosil Renewables.

Borosil Renewables is the first and only solar glass manufacturer in India. The glass manufactured is used in photovoltaic panels.

Currently, the company enjoys a 40% market share in the domestic market (catering to over 400 customers) and exports its products to the USA, Turkey, and Europe.

India relies heavily on imports for its solar glass, with China and Malaysia being the primary sources.

This presents a unique situation for Borosil Renewables, the sole domestic manufacturer.

While they are ideally placed to benefit from India's growing solar market, their profitability has been hampered by unfairly priced imports. This comes on the back of discontinuation of anti-dumping duties in August 2022.

Borosil Renewables' capacity expansion in February 2023 has also played a role in the decline in profitability.

The higher interest and depreciation expenses associated with the expansion are impacting profits in the short term until the increased capacity reaches full efficiency.

Apart from this, Borosil is in the process of exploring power sourcing through a hybrid wind-solar plant.

To improve its financial health, Borosil Renewables is planning to reduce its overall debt burden by prepaying some of its high-interest loans. It has already announced a fundraising plan of around Rs 5 bn to achieve this.

Despite the potential benefits from the government's solar initiatives and incentive schemes, Borosil Renewables has put its expansion plans on hold.

They'll revisit this decision once there's greater clarity on import duties for solar glass and the price volatility of solar modules and glass stabilises.

#10 Surana Solar

Next on the list is Surana Solar.

The firm is engaged in the business of manufacturing solar photovoltaic modules, generation of wind and solar power energy and trading of other solar related products.

The company has two manufacturing plants in Hyderabad.

Between 2019-2023, the company reported a sales and net profit 5-year CAGR of 3.4% and 22%, respectively.

The returns, although weak have been increasing, with the RoE and RoCE at 1.8% and 3.4% in the financial year 2023, respectively.

While still relatively small, Surana Solar stands to benefit as it makes big moves in the solar segment.

#11 Visaka Industries

Last on this list is Visaka Industries.

Visaka Industries is engaged in the business of manufacturing cement fibre sheets, fibre cement boards and panels, solar panels, and synthetic yarn.

The company operates in two segments: building products and synthetic Yarn. The building products segment produces asbestos sheets, solar panels, accessories used as roofing material, and non-asbestos flat sheets and sandwich panels used as interiors.

Back in 2018, Visaka launched a solar roofing product called ATUM.

This is India's first 100% green EV charging station.

It is powered by ATUM Solar Roof, making it a completely sustainable alternative to existing EV charging units, which use thermal power generation, one of the primary sources of pollution.

ATUM Charge has also completed the installation of 250 universal electric vehicle charging stations in India, with 48 units in Telangana.

Upcoming IPOs of Solar Panel Manufacturers

#1 Waaree Energy IPO

Apart from the above, you can't forget about Waaree Energy's upcoming IPO.

The Waaree group's flagship company, which manufactures solar PV modules and provides solar energy solutions in India, is all set to come out with its IPO this year.

In December 2023, Waaree Energies filed its DRHP with the regulator to launch its IPO. The company is looking to raise Rs 37 bn via the IPO route.

#2 Premier Energies

Hyderabad-based Premier Energies, which is India's second largest integrated solar cell and solar module manufacturer, has filed the draft red herring prospectus (DRHP) with capital markets regulator, to raise more than Rs 15 bn through an IPO.

The IPO would consist of a fresh issue of equity shares aggregating up to Rs 15 bn and an Offer for Sale (OFS) of up to 2,82,00,000 shares by the selling shareholders.

The company's state-of-the-art manufacturing units span three locations in Telangana, covering over 44.91 acres collectively.

As of 31 March 2024, the company boasts an impressive annual production capacity of 2 GW for solar cells and 3.36 GW for solar modules.

By leveraging the burgeoning solar energy market and contributing to India's energy independence, Premier Energies is well-positioned to expand its market presence and contribute to the nation's renewable energy goals.

What Challenges do Indian Solar Panel Manufacturers Face?

While many things are progressing well on the solar front, we do have to talk about some hurdles.

For starters, instead of trying to control every aspect of the supply chain locally, which can be costly and inefficient (especially with materials like polysilicon being more expensive to produce domestically), India could look at diversifying its sources of import to ensure stability and cost-effectiveness.

Right now, with the tariffs and duties in place on such imports, it's expensive for Indian solar panel companies to manage pricing power.

To reduce this dependency on imports for solar cells, India Inc. is already increasing its own manufacturing capabilities.

In Conclusion

It's becoming increasingly clear the world is moving towards solar.

Keeping track of all the stocks involved in this space makes sense.

Stay tuned for more updates.

And in the meantime, check out the below video where lead smallcap analyst Richa Agrawal shares her top solar stock picks.

Happy Investing!

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...