Founded in 1990 and headquartered in Mumbai, Waaree Energies Limited has become the leading manufacturer of solar photovoltaic (PV) modules in India, with an aggregate installed capacity of over 13 GW across four facilities in Gujarat (Chikhli, Surat, Tumb and Nandigram). The company is set to add a solar cell facility to its portfolio and plans for a solar wafer facility are also under way. Meanwhile, it is looking to enter the US solar cell and module market, in line with its global expansion plans. In a recent interview with Renewable Watch at the 4th Global RE-INVEST 2024 in Gandhinagar, Gujarat, Dr Amit Paithankar, chief executive officer, Waaree Energies Limited, shared his views on policies for promoting domestic solar manufacturing, along with technology and industry trends in the solar space. Edited excerpts…
What is the current portfolio of Waaree Energies? What are its capacity addition plans?
Currently, we have 13.4 GW of module production capacity. In addition, we plan to set up 3 GW of module production capacity in the US, which is expected to be operational by the end of the calendar year. Our expansion plan in the US is to reach 5 GW, and we are actively considering cell manufacturing there. In the solar cell space, our 5.4 GW factory is scheduled to begin operations by the end of the calendar year. Going forward, we aim to expand our manufacturing footprint in India as well as the US.
What are your views on reverse integration by manufacturers given the low or negligible capacity for producing cells, wafers, ingots and polysilicon? How are you planning to establish a domestic supply chain for these products?
We have made efforts in reverse integration and are setting up a solar cell facility as well. We have secured production-linked incentives (PLIs) for wafer, cell and module manufacturing, which will add 6 GW across the value chain for us. Under the PLI scheme, we will opt for
wafer manufacturing.
“We aim to expand our manufacturing footprint in India as well as the US.”
There is a clear policy shift in the country to promote reverse integration in the solar value chain. Apart from incentives under the PLI scheme, the Approved List of Models and Manufacturers (ALMM) has been expanded to include solar cells, not just solar modules as before. With these policy initiatives, we can anticipate further policy changes across the value chain, all the way to polysilicon.
Which solar module technology are you currently focusing on? What is your take on the technology trends in this space?
Currently, we are manufacturing both Topcon and mono PERC modules, with Topcon’s share increasing in our overall product mix. As you know, solar technology evolves every three to four years. Following this trend, we have also started manufacturing HJT solar panels. In terms of efficiencies, mono PERC modules have always been considered efficient, but Topcon modules have surpassed them. With HJT, we expect efficiencies to exceed Topcon’s levels.
I think the biggest leap in solar technology will be tandem cells where multiple layers of cells (a perovskite layer on top of a silicon layer) are stacked together to generate more electricity. This may enhance solar efficiency beyond the Shockley-Queisser limit of 32 per cent, potentially reaching 33-34 per cent at the cell level. It will take time, but it will eventually happen.
The government is promoting domestic solar manufacturing through various policy initiatives such as the PLI scheme, basic customs duty and the ALMM. Do you feel manufacturers and developers are at odds with respect to these policy initiatives? What is the way forward for policies in this space to address the concerns of all stakeholders?
I believe developers and manufacturers are not at loggerheads with respect to various policies that are in place to promote domestic solar component manufacturing. The aim of all stakeholders is to develop cost-efficient solar panels with the latest technology and highest efficiency to minimise land use and sustain power purchase agreements (PPAs) at good margin points. This is a shared purpose of the industry and there are no conflicting purposes between stakeholders.
“The biggest trend right now is the uptake of renewable storage projects. The policy shift in that direction is a welcome change.”
From a policy standpoint, the government has taken steps to foster a manufacturing ecosystem. We welcome the initiative to introduce ALMM for solar cells. In fact, our view is that the sooner ALMM for cells is implemented, the better it will be for the entire industry. It should be appreciated that when ALMM for modules was introduced, the manufacturing capacity surged to over 50 GW within one and a half years. A similar trend will be seen when ALMM for cells is implemented.
While there may be a perception that ALMM increases the cost of production because Indian modules are more expensive, market trends do not support this. At current module price points, PPAs at Rs 2-Rs 3 per kWh are achievable, providing extremely cost-effective power.
To play the devil’s advocate, do you not think the ALMM policy is too restrictive?
Let us understand why this policy push for ALMM was needed. There is a concentration of the supply chain in a few countries, which is problematic. Without a vibrant manufacturing sector, the country will not have enough employment opportunities.
Promoting manufacturing has a massive multiplier effect. A 1 GW cell plus module manufacturing facility employs 700-2,000 people, and building these factories requires over 1,000 people per GW. Therefore, manufacturing provides a significant source of livelihood for many families.
In addition, there is a concern about the widening trade deficit due to excessive dependence on imports from a few countries. So, how do we break that cycle? Breaking this cycle requires creating a manufacturing ecosystem within India. We have the potential to achieve lower costs.
The key cost components of panel manufacturing are power, labour and materials like glass and aluminium frames. These commodities are largely available at the same prices for everybody. India’s labour costs are arguably among the best in the world. Our power costs are now comparable to these other countries.
“We welcome the initiative to introduce ALMM for solar cells.”
Have you faced issues related to high power costs and lack of stable electricity supply for your manufacturing facility?
The cost of power for manufacturers has now reduced, and our grid is very stable. Therefore, if direct grid connectivity is available, the supply is stable. But can we be better in this space? Should our grid stability improve? Should grid availability be better? Should the price of grid power reduce? The answer to these questions is yes. There is a definite scope for improvement.
What are your views on solar module recycling and recovering critical minerals from it? What are Waaree’s plans in this space?
The short answer to your question is that we are considering this as a business opportunity.
What is the outlook for the sector? What are the key trends that will shape its future going forward?
We believe that the current regulatory framework is quite favourable. The projects being conceived at the central and state levels are also of good quality. The biggest trend right now is the uptake of renewable storage projects. The policy shift in that direction is a welcome change.
