PNN
New Delhi [India], June 11: Solarium Green Energy Limited (Solarium), a market leader in rooftop solar projects in India, is planning to re-enter the manufacturing of Solar Modules using the latest technology of fully automated machinery with higher capacity. The facility will be installed with a production capacity of ~1000 MW (megawatt) at Ahmedabad, Gujarat, India, at an estimated project capex cost of ~Rs70 crore + requisite working capital via a mix of debt to equity in a ratio of 3:1.
This strategic move is part of the company's backward integration initiative. In EPC projects, solar modules typically account for approximately 50-60% of the total project cost. By setting up an in-house module manufacturing facility, the company aims to mitigate cost volatility, expedite project execution, and secure its supply chain along with improvement in margins. The facility will focus on the production of Crystalline Silicon Solar PV Modules, utilizing advanced technologies such as TOPCon cells, half-cut cells, and bifacial cells using imported tabber-stringers, laminators, and sun simulators to ensure high-quality output and efficiency.
Commenting on the strategic move of backward integration and foray into manufacturing, Mr. Ankit Garg, Chairman and Managing Director, Solarium commented, "We are excited to re-enter the manufacturing space and are confident of the synergy this module manufacturing will bring to our supply chain. There are 3 key components in a Solar Plant; Solar Module, Inverter & Structure. At 85% plant utilization, the plant can generate a revenue of Rs.1,000+ crore annually (If Modules get sold in the market). While captive consumption of Modules, by eliminating third-party markups, we expect the gross margin to improve by 5%-8% in the projects where these modules will be used."
Additionally, Solarium is also initiating the manufacturing of structures--one of the three core components of a solar plant--at its existing facility in Bavla, Gujarat. This move will further enhance execution capabilities and reduce project timelines. In line with its integrated strategy, Solarium recently announced a collaboration with WattPower Systems Pvt. Ltd. to expand the distribution of high-quality solar inverters across Madhya Pradesh and Maharashtra.
The Ahmedabad manufacturing facility is aimed at mitigating supply chain risks arising from trade-related disruptions, geopolitical uncertainties, and price volatility. With the industry's future prospects looking robust on the back of India's solar energy potential to reach about 750 GW by 2047, any additional capacity available post captive consumption will be used to cater the other EPC players/B2B segment by selling the Solar Modules alone.
The upcoming in-house manufacturing capacity is expected to strengthen Solarium's bidding capabilities across both B2G and B2B segments, positively influencing its ability to secure a higher volume of orders going forward. This move will also build greater trust with B2C customers through guaranteed quality and reliability.
The commercial operation is expected to be commissioned from Q4 of the current FY.
About Solarium:
Founded in the year 2018, Solarium is a leading provider of turnkey solar solutions, offering a complete range of services such as design, engineering, procurement, testing, installation, commissioning, and full-scale operation and maintenance (O&M), along with a variety of solar products such as PV modules, inverters, and Availability Based Tariff (ABT) meters. The company is founded by first-generation entrepreneurs with 21+ years of combined experience in the solar space. The company is among the market leaders in the residential rooftop projects for the B2C segment in the residential category, with 65+ MW projects executed across 18,000+ homes via in-house sales team and 350+ channel partners. The company also caters to commercial & industrial projects and Government projects with 35+ MW rooftop projects and 30+ MW ground mounted projects executed over the years. Solarium has gained a significant market share by offering comprehensive solar solutions at competitive prices, backed by exceptional execution and high customer satisfaction.
(ADVERTORIAL DISCLAIMER: The above press release has been provided by PNN. ANI will not be responsible in any way for the content of the same)
