First Solar To Commission 3.3 GW India Solar Module Facility By October 2023

Prompted by India's Atmanirbhar Bharat scheme, the U.S.-based First Solar Inc. will start commercial production of its Indian unit's solar panel manufacturing unit in Tamil Nadu from October 2023.

The project, which got delayed due to Covid-19, finally got board approval in August 2021 and broke ground at Sriperumbudur, Tamil Nadu, in November 2021, Sujoy Ghosh, vice president and country managing director of First Solar India, told BQ Prime.

"The construction work has since started and the work is almost 60% complete," Ghosh said. "The integrated run of the factory will start in July 2023, while the final commercial operation will start in October next year."

The world's 10th largest solar panel manufacturer by capacity had approved total investment of Rs 6,400 crore or $800 million on the project. It is part of its global investment plan of $1.6 billion on two manufacturing units of $800 million each, in India and the U.S., Ghosh said.

The company has already invested close to $170 million or Rs 1,360 crore on construction of 2.2 million square feet air conditioned building and purchase of equipment, he said.

First Solar, which globally exited its power assets business in 2019 to focus on technology-based solar manufacturing, will produce thin-film based modules at the Sriperumbudur facility with zero dependence on the Chinese supply value chain.

The plant will start with 520 watt peak capacity panels and it will go up to 540 watt, once the plant achieves full capacity in a year, Ghosh said.

"To begin with, the plant will produce 7,000 panels a day, which will go up to 16,000 panels a day at full capacity in a year's time," he said.

The shift in government policy that recognised solar as a strategic energy resource for the future and creation of self-reliant sectors, including renewable energy under the Atmanirbhar Bharat scheme to reduce disproportionate dependence on China, were the trigger points that led the company to set up the manufacturing plant in India, Ghosh said.

Additionally, government policies that favoured local manufacturing, such as introduction of basic customs duty that ring-fenced the import of solar equipment into India; the approved list for modules and manufacturers; and 15% corporate tax for new manufacturing plants, were some of the other factors that motivated the company.

"We felt it was the right time to enter the manufacturing business in India under the 'Make in India' plan to cater to the local demand," Ghosh said.

The company will complete the qualification procedures in the three months between July and October 2023 to secure BIS (Bureau of Indian Standards) certification for its modules and later the approval under the ALMM (Approved List of Models and Manufacturers), Ghosh said.

The company also aims to participate in the next round of Solar Production Linked Incentive tenders. "We will definitely participate in the next round. Since we were the first runners up in the first tender floated under the Solar PLI scheme, our project will qualify in the upcoming tenders as well."