The global solar power manufacturing space is extremely competitive. It is dominated by a few large players, based on mostly crystalline solar technology, and the majority of the production is concentrated in one country. In this landscape, First Solar, a US-based manufacturer, is making its mark for being the only player of its scale to develop thin-film photovoltaic (PV) technology. The company, which has been supplying modules to projects in India for several years, recently established its first manufacturing plant in the country. Sujoy Ghosh, vice president and country managing director India, First Solar, talks about India’s expanding solar manufacturing segment and the company’s recent achievements in India…
What were the key developments for First Solar in the Indian renewable energy industry in the past year?
The highlight of the year was the commencement of operations at our new solar module manufacturing facility in Sriperumbudur, Tamil Nadu. The facility added 3.3 GW of nameplate module manufacturing capacity in India in just 19 months. This is India’s first fully vertically integrated solar manufacturing plant, performing the thin-film equivalent of cell, wafer and module production under one roof in about 4.5 hours using a high-tech, fully automated process. This facility demonstrates the speed at which vertically integrated thin-film manufacturing can be deployed to support India’s goal to build a sustainable, self-sufficient solar value chain. This facility also proves India’s ability to attract investment, as both the federal government and the Government of Tamil Nadu have supported our investment with high quality infrastructure. Moreover, it proves that India has a talent pool that supports high-volume, advanced manufacturing – what we achieved in just 19 months would not have been possible without the efforts of over a thousand people employed at the facility.
What is your view on tariff and non-tariff barriers on imported solar components?
Given China’s dominance of the crystalline silicon value chain and the legitimate concerns of countries such as India that deploying solar at scale in this scenario may create strategic vulnerabilities, safeguards that provide domestic supply chains a level playing field are essential. The Indian government clearly recognises the need to safeguard the unprecedented investment happening in domestic manufacturing from anti-competitive behaviour arising primarily from China’s state-subsidised solar manufacturing industry, which is dealing with significant overcapacity. Against this backdrop, we expect the federal government to stay consistent in its approach, balancing industrial policy, trade safeguards and firm deployment goals, creating a model for other countries.
What are the key reforms and strategies required from policymakers and industry stakeholders to increase domestic manufacturing of solar components in India?
From the perspective of a manufacturer and investor, the current policy framework is a robust balance of industrial policy, trade safeguards and firm deployment goals, which helps provide a level-playing field for domestic manufacturing. This framework, which we have often cited as a proven template for markets such as Europe and the US, must be maintained to safeguard investments in domestic manufacturing, allowing them to mature and scale. The Indian government should continue to commit to this framework in the long run, avoiding any changes that could be seen as causing volatility and potentially undermining investor confidence.
From a demand perspective, however, there’s a need to re-evaluate the e-auction mechanism and revert to the reverse auction and book-building process of allocating capacities in the solar segment. This was recently implemented in the wind sector, and can easily be replicated. Beyond this, we would like to see the government further encourage investments in research and development, positioning India for growth and leadership vis-à-vis future PV technologies that are unlikely to be reliant on crystalline silicon. Partnerships between India’s academic institutions and leading industry players are catalysts for innovation, bridging the gap between lab and fab.
What will be the impact of the Inflation Reduction Act of the US government and the European Green Deal on Indian solar manufacturers? What strategies should be followed by manufacturers to adapt to these global policy changes?
The governments of India, the US and Europe share common concerns about China’s dominance of clean energy value chains and the vulnerability this creates. Our view is that policymakers in all three markets should consider how these democratic allies can complement each other, collectively diversifying clean energy supply chains and addressing the threat posed by overconcentrated supply chains controlled by China.
The industry is primed to support such an effort. On the one hand, you have an American company like First Solar that has invested in building manufacturing in the US and has also invested in India, with over 17 GW of annual nameplate capacity expected to be operational in both markets by 2026. On the other hand, you have Indian companies that have announced plans to invest in the US. These developments represent an opportunity to scale trusted clean energy supply chains in democratic nations, moving away from China’s dominance and the resulting risk to the global energy transition.
What are the key sustainability practices undertaken by First Solar in the solar manufacturing space?
First Solar has led by example on both the circular economy and sustainable, responsible manufacturing fronts. The Series 7 module, produced by our facility in India, is the industry’s most eco-efficient, with a carbon and water footprint that is approximately four times lower than that of the crystalline silicon solar panels produced in China. Our sustainable manufacturing approach uses 50 per cent less energy and only a third of the water that an equivalent polysilicon module production facility would require.
In today’s world, with increasing scrutiny on the social and environmental attributes of solar supply chains, First Solar has outperformed all its peer group companies in this regard. We pioneered the use of the Electronic Product Environmental Assessment Tool (EPEAT) and are currently the only solar manufacturer to have EPEAT Silver-rated products. Additionally, we are believed to be the first among the world’s largest solar manufacturers to have conducted third-party social audits across our operational global manufacturing footprint. Our integrated manufacturing process helps eliminate the risks and traceability challenges associated with outsourcing and the multiple supply tiers of conventional crystalline silicon solar manufacturing.
We are proud that our new facility has been optimised to deliver value to India beyond the production of advanced, ultra-low carbon solar panels. In response to its location in an area of high baseline water stress, we have designed what is believed to be the world’s first net zero water withdrawal solar manufacturing facility. It is designed to minimise its impact on local water resources and will rely entirely on tertiary-treated reverse osmosis water from the city’s sewage treatment plant, while having zero wastewater discharge. Additionally, the factory is home to India’s first solar PV recycling plant, which provides closed-loop semiconductor recovery for use in new modules while also recovering other materials, including aluminium, glass and laminates.
We continue to set a high bar in sustainability and responsible solar, and we encourage other solar manufacturers to join us in ensuring that our industry can maintain and grow its social licence to operate.
Which are the key upcoming technologies in the solar module space? What are the efficiencies and cost trends of these technologies? Going forward, what will drive cost reduction of these technologies?
We believe that the next truly disruptive breakthrough in PV technology will balance energy yield, efficiency and cost, and that the pathway to this disruption will eventually lead to tandem technologies that combine two semiconductors to maximise the conversion of photons into electrons. With respect to configuring such tech, for top cells there are only two practical material choices today, CdTe and perovskites, both of which are thin films. In other words, we believe that there is no tandem technology without thin film, and there is no other solar manufacturer in the world that has mastered commercialising and scaling thin-film PVs to the extent that First Solar has, which we believe puts us in an advantageous position.
How do you plan to expand your manufacturing portfolio in the future, and what are your long-term investment goals?
First Solar has been allotted Rs 11.7 billion worth of incentives under the solar production-linked incentive scheme, Tranche II. Our immediate focus is to ensure that by the beginning of 2026, our India facility meets the threshold of capacity, efficiency and local value-adding parameters required under the scheme to secure these incentives. This will entail incremental and ongoing investment in process equipment, and the qualification and creation of a domestic component ecosystem.
