Wedoany.com Report-Jun 15, Solarium Green Energy has announced its return to solar module manufacturing with the development of a fully automated 1 GW production facility in Ahmedabad, Gujarat. The new plant, expected to begin commercial operations in the fourth quarter of fiscal year 2025-26, represents a significant scale-up from its previous 100 MW polycrystalline module facility, which was decommissioned after regulatory changes introduced by the Indian Ministry of New and Renewable Energy (MNRE).

The previous facility closed following the implementation of the Approved List of Models and Manufacturers (ALMM) mandate, which required modules to meet a minimum efficiency of 19%. In contrast, the new plant will produce advanced crystalline silicon solar modules using high-efficiency technologies, including tunnel oxide passivated contact (TOPCon) cells, half-cut cells, and bifacial cells. To ensure quality and performance, imported equipment such as tabber-stringers, laminators, and sun simulators will be used.

The project will involve an estimated capital expenditure of INR 700 million (approximately $8.2 million), with a planned debt-to-equity ratio of 3:1. Solarium’s decision to invest in backward integration is aimed at controlling project costs, enhancing supply chain reliability, and improving profit margins. In typical engineering, procurement, and construction (EPC) projects, solar modules account for 50% to 60% of total costs. By manufacturing in-house, Solarium expects to reduce cost fluctuations and third-party markups.

Ankit Garg, chairman and managing director of Solarium, stated: “We are excited to re-enter the manufacturing space and are confident of the synergy this module manufacturing will bring to our supply chain. At 85% plant utilization, the plant can generate revenue of more than INR 10 billion annually if modules are sold in the market. With captive consumption of modules, by eliminating third-party markups, we expect the gross margin to improve by 5% to 8% in projects where these modules will be used.”

In addition to module production, Solarium is entering structure manufacturing at its Bavla facility in Gujarat. This will further improve execution capabilities and reduce project lead times. The company has also partnered with WattPower Systems to expand solar inverter distribution across Madhya Pradesh and Maharashtra, strengthening its position in key regional markets.

The Ahmedabad facility is designed to reduce exposure to trade risks, price fluctuations, and geopolitical factors. Any production beyond in-house needs will be offered to other EPC contractors and B2B buyers.

Founded in 2018, Solarium Green Energy delivers comprehensive solar solutions, covering design, procurement, installation, commissioning, and operations. It has completed over 65 MW of installations, serving residential, commercial, industrial, and government clients through a network of more than 350 channel partners. The company’s portfolio includes over 18,000 homes, 35 MW of rooftop projects, and 30 MW of ground-mounted systems.