Solex Energy Plans ₹4,000 Crore Solar Cell Factory in Gujarat

Gujarat-based Solex Energy Limited has announced plans to invest ₹4,000 crore in a new solar cell manufacturing facility. The company will build a 2-gigawatt (GW) plant in Gujarat's Tapi district, near Vyara.

The announcement comes as India pushes to grow its domestic solar manufacturing base. The country currently relies heavily on imported solar cells, mostly from China. Solex Energy's move aims to fill part of that gap.

Construction is expected to start in the next financial year. The company says the plant will be built in phases. The first phase, with 1 GW capacity, should be operational by early 2026. The second phase will add another 1 GW.

Solex Energy already makes solar modules, panels that use cells. But until now it bought cells from outside suppliers. This new plant will let the company produce its own cells. That means tighter control over quality and supply.

Why cells matter

Solar cells are the heart of a solar panel. They convert sunlight into electricity. Making them requires advanced technology and high capital investment. Few Indian companies make cells. Most assemble modules from imported cells.

The Indian government wants to change that. It has introduced production-linked incentives (PLI) for solar manufacturing. It has also imposed a basic customs duty on imported solar cells. These policies aim to push companies like Solex to invest in domestic production.

Solex Energy's managing director, Chetan Shah, said the new plant will use the latest technology. It will produce monocrystalline PERC cells, a high-efficiency type. The company also plans to explore TOPCon technology, which offers even higher efficiency.

Jobs and local supply

The plant is expected to create about 1,000 direct jobs. Many of these will be for engineers and technicians. The company will also need workers for construction and support roles. Local officials in Tapi district have welcomed the investment.

Solex Energy already has a module assembly plant in Gujarat. That plant has a capacity of 500 MW per year. With its own cell supply, the company can expand module production. It also plans to supply cells to other module makers.

The ₹4,000 crore investment will be funded through a mix of debt and equity. The company has not yet disclosed the exact split. It is in talks with banks and financial institutions for loans.

Solex Energy is listed on the Bombay Stock Exchange. Its stock price rose after the announcement. Investors see the move as a bet on India's solar boom.

Bigger picture

India wants 500 GW of renewable energy capacity by 2030. Solar is expected to be the biggest chunk. To get there, the country needs both more solar farms and more domestic manufacturing.

But building solar cell plants is not easy. It takes time, money, and technical know-how. Some Indian companies have announced plans but struggled to execute. Solex Energy says it has secured land and is in advanced talks for equipment.

The company has been in the solar business for over 25 years. It started as a module maker and later moved into EPC (engineering, procurement, and construction) for solar projects. This new cell plant is its biggest bet yet.

If the plant comes online on schedule, it will add 2 GW of annual cell capacity. That is still small compared to India's total demand, which could hit 50 GW per year by 2030. But every new plant helps.