'There has never been a better time for solar in India': Premier Energies to invest ₹12,500 crore, expand capacity beyond 10 GW

Riding on the rapid expansion of India's solar sector, Premier Energies plans to invest ₹12,500 crore to build a fully integrated manufacturing ecosystem while expanding its solar cell and module capacity to more than 10 GW over the next three years. The company is also diversifying into batteries, inverters and transformers as it looks to strengthen its position in India's clean energy value chain. 

"There has never been a better time for the solar sector in India," Vinay Rustagi, Chief Business Officer, Premier Energies, told Fortune India in an exclusive interview, pointing to strong policy support, technological advancements, rising consumer awareness and the government's manufacturing push as the key drivers of the industry's growth. 

The company has identified three strategic priorities for the next phase of expansion. "First, we aim to achieve scale by expanding our cell and module capacities to north of 10 GW. Second, we want to complete backward integration into ingots and wafers. And third, we want to diversify our product mix to include batteries, inverters and transformers," Rustagi said. 

The expansion comes at a time when India is rapidly building domestic manufacturing capabilities to reduce dependence on imports and achieve its ambitious target of 500 GW of non-fossil fuel capacity by 2030. 

Solar manufacturing witnessing unprecedented growth 

Rustagi believes India's solar manufacturing industry has entered a structural growth phase. 

"There has never been a better time for the solar sector in India. Demand continues to grow on the back of advancements in solar technology, rising oil and gas prices, improving consumer awareness and supportive government policies," he said. 

According to him, the government's subsidies for residential rooftop solar installations and solar pumps, coupled with policy reforms and the Make in India initiative, have significantly accelerated industry growth. 

He estimates that India's solar manufacturing industry will generate revenues of around ₹75,000 crore, a sharp jump from just ₹2,000-3,000 crore five years ago. 

"The Make in India policy has added another dimension to the sector's growth," he said. 

₹12,500 crore investment to build integrated manufacturing 

Premier Energies is betting heavily on backward integration to improve competitiveness and reduce dependence on imported components. 

Rustagi said Premier Energies has enjoyed a strong market position especially in cell manufacturing business with its early investments and adoption of TOPCon technology. According to him, the company plans to invest ₹12,500 crore to establish a 10 GW fully integrated manufacturing facility covering modules, solar cells, ingots, and wafers. 

This strategy will help Premier Energies strengthen its position amid increasing competition from both domestic and Chinese manufacturers. "Our strategy for staying ahead rests on three pillars—scale, backward integration and diversification," he said. 

Besides expanding its core solar manufacturing operations, the company is entering adjacent clean energy segments such as batteries, inverters and transformers. "These products complement our existing business and allow us to leverage our client relationships and distribution network while offering a broader portfolio of clean-tech equipment," he added. 

Order book at ₹14,000 crore 

Premier Energies continues to enjoy strong order visibility despite recent changes in the government's solar policy. 

As of March 2026, the company's order book stood at approximately ₹14,000 crore, representing nearly 8,400 MW of solar cells and modules. 

Rustagi said the company's production is fully booked for the next six months, largely through government-backed schemes such as the PM Surya Ghar Muft Bijli Yojana and the PM-KUSUM programme. 

"Fortunately for us, our entire production is sold out for the next six months with KUSUM and residential rooftop solar customers. Both these markets remain unaffected by the recent policy tweak and hence there is no material impact on us," he said. 

While utility-scale projects have traditionally been the company's largest business segment, Premier Energies is now witnessing strong growth in commercial and industrial (C&I) as well as rooftop solar installations. 

"Historically, utility-scale projects have been our biggest segment, but now we're seeing much better balance with the growth of C&I and rooftop markets," Rustagi said. 

Domestic manufacturers key to India's energy transition 

Rustagi said Indian solar manufacturers will play a critical role in helping the country achieve its renewable energy ambitions. 

According to him, the domestic manufacturing ecosystem has already emerged as a significant contributor to economic growth. "The manufacturing business has attracted over ₹80,000 crore of investments over the last four years and created more than 300,000 jobs. This means we are creating value within the country instead of sending precious dollars overseas," he said. 

He believes expanding domestic manufacturing capacity will make India's renewable energy ecosystem more resilient while reducing reliance on imports. 

Exports offer long-term opportunity 

Although exports remain an important part of Premier Energies' long-term strategy, the company acknowledges that access to the US market has become more challenging due to tariffs and proposed anti-dumping (ADD) and countervailing duties (CVD). 

Despite these challenges, Rustagi remains optimistic about export prospects. 

He said India's recently signed Free Trade Agreement (FTA) with the United Kingdom and the proposed trade agreements with the European Union and the United States could create significant opportunities for Indian manufacturers by enabling duty-free exports of renewable energy equipment. 

"There are many countries around the world, especially the US and European nations, that are seeking to reduce their dependence on China and diversify their supply chains. This potentially opens up a very large market for Indian module manufacturers," he said. 

Module prices expected to remain stable 

Commenting on pricing trends, Rustagi said the domestic solar module market continues to remain dynamic because of changes in demand-supply conditions, policy developments and supply-chain disruptions. 

He noted that prices of Domestic Content Requirement (DCR) modules and solar cells have remained largely stable over the past year. The non-DCR module market, however, has experienced intense competition, leading to pricing pressure and margin erosion. "We don't expect any major pricing changes over the coming year," he said. 

AI and automation driving manufacturing efficiency 

Premier Energies is increasingly relying on artificial intelligence and automation to improve manufacturing productivity and product quality. 

Rustagi said the company's new manufacturing facilities are highly automated and require minimal human intervention, helping improve plant utilisation, reduce production costs and enhance quality. "AI is being integrated into every stage of the manufacturing process to optimise production cycles, detect faults early and perform predictive analytics," he said. 

He believes automation will become a key competitive differentiator as India's solar manufacturing industry continues to scale up and compete globally. 

With aggressive capacity expansion, deeper backward integration, and a diversified clean energy portfolio, Premier Energies is positioning itself to capitalise on India's fast-growing renewable energy market. As domestic demand remains strong and global buyers increasingly look beyond China for alternative supply chains, the company expects the next few years to offer significant growth opportunities for both India's solar manufacturing industry and its own business.