Evaluating setting up shop in United States: Vikram Solar chairman

Vikram Solar Chairman Gyanesh Chaudhary says consolidation is under way in renewables, with capacity expansion, upstream investments and plans to explore the us market despite sector headwinds

The year 2025 left India’s renewables business at the crossroads. On the one hand, the installation of solar panels may reach an all-time high, led by record tenders in the recent past. On the other hand, awarded tenders, of around 40 gigawatts (Gw), have failed to close power-purchase agreements with utilities. The American market, the biggest for Indian makers of solar modules, has come under high tariffs. Overcapacity in the domestic market is mounting, and shares of leading manufacturers of renewable modules are sliding, raising concerns about a ‘grahan’ (eclipse) for the solar business. Gyanesh Chaudhary, chairman and managing director, Vikram Solar, one of India’s biggest producers of solar equipment, tells S Dinakar that these concerns are misplaced and illustrates the potential of the Indian market for clean energy and that of Vikram Solar. Edited excerpts: 

Can you tell us about Vikram Solar’s plans after the recent public offering? 

After being in the sector for more than two decades, the kind of energy and excitement we have seen in the past 12-15 months is unprecedented. India is on track to add 40-50 Gw (of renewables) this year. Vikram Solar is in line with this expansion. We started the year with 4.5 Gw of (module) capacity and we will end the year with more than 9.5 Gw. In some time we will add another 6 Gw. We are investing in upstream capacity in cell manufacturing. We are also looking at the storage of battery energy. Large players like us are looking at going deeper into the value chain. And this is part of the beginning of consolidation in the sector and also following through with the government’s mandate. 

  Why are share prices of solar makers, including yours, declining? Do you see a rebound? 

This narrative on capacity is visible on media channels. If you differentiate capacities based on technology, there are not enough high-efficiency products available. As far as the bounce-back is concerned, the difference will be as to how the market segregates the men from the boys. The ones that are able to deliver high technology and high efficiency will be able to thrive.

  Can you take us through the investment made this year in module manufacturing and going forward?

  For the Gangaikondan plant (in Tirunel-veli district) we are investing ₹6,200 crore in cells and modules, to be commissi-oned by FY27. This will be the single-largest site in India for an integrated capacity of 12 Gw.

  We are investing ₹1,800 crore over two years in module (11 Gw) manufacturing. We will end the year with 15.5 Gw, of which one facility, in Vallam, near Chennai, has come on stream with 5 Gw of additional capacity, and another 6 Gw is under construction. It will be ready by the end of FY26.

  There’s a lull in tendering for renewables. Will it affect installations and capacity addition?

  This is a myopic narrative that is being built. India is at an 8 per cent growth rate and with this kind of growth, demand for energy is growing exponentially. We see 5-7 per cent additional energy being added to the grid every year. The limiting factor for renewables is grid infrastructure, the discoms, and also how storage works in this ecosystem. China has deployed more than 200 Gw of storage on the grid.'Solar has an inherent limitation posed by the time of the day. Now with the storage of battery energy getting added to this, discoms have a phenomenal flexibility to be able to shift the peak load to the evening and other times, so that there is a sense of grid stability while demand is growing.  

What do you think of the American market, the biggest for Indian manufacturers? 

In the next three years I see Indian manufacturers taking over in a significant way because the cost structures in America don’t allow for optimised per watt peak deployment. Secondly, the upstream value chain is tough to create there in large capacities. 

  You plan to set up shop in the United States (US)? 

We are evaluating that. As I said, the cost structures in the US are far higher. 

Any further backward integration? 

That is being discussed and we will roll out our wafer plans sometime next year. 

What about battery storage and hydrogen? 

Green hydrogen is a little further off. We are benchmarking different technologies and working with partners to devise a long-term plan. As far as the battery is concerned, we have rolled out our first investment plan for the first phase of battery assembly as well as cell manufacturing. This will be 7.5 Gw of cell manufacturing. The long-term vision is to deploy storage of 30 Gw of integrated battery energy in India. 

You were talking of consolidation. Do you hope to see that happening? 

Not yet. 

Is overcapacity in module manufacturing a concern?  

This sector rewards companies that are able to invest and develop products and solutions that are best in terms of global standards. Those manufacturers will be able to do well with an integrated approach.  

What about utilisation?  

This year our utilisation is on the mark. Typical industry utilisation is 45-55 per cent. We are averaging around 65 per cent. 

How competitive are Indian manufacturers compared to the Chinese? 

I’m seeing domestic ecosystems being developed. The undue advantage the Chinese had in terms of kickbacks and subsidies is ending.