An India-based solar module manufacturer has announced plans to set up module production line in the United States.
Rayzon Solar recently announced plans to set up 500 megawatts of solar module manufacturing capacity in the US. The company did not specify any timeline or location for setting up the facility.
The company claims to have a production capacity of 1,500 megawatts in India and is looking to increase it to 2,500 megawatts in the near future.
Apart from expanding its production capacity, the company has also been looking to offer new products to compete with international brands. Last year, the company launched a monocrystalline bifacial module with up to 540 watts of output. While leading manufacturers across the world have already transitioned to large bifacial modules, most Indian manufacturers are still producing monofacial modules.
Rayzon joins several other Indian companies either looking to expand their module manufacturing capacity or set up manufacturing facilities afresh. Adani Enterprises, Tata Power Solar, Vikram Solar, and Waaree Energies are existing module manufacturers that have announced aggressive plans to expand production capacity.
Companies with no prior experience in module manufacturing are also looking to set up shop. These include Avaada Energy, ReNew, AMP Energy, and Reliance Industries.
These companies have been attracted to the manufacturing business following conducive policy decisions by the Indian government. A production-linked incentive scheme worth Rs 250 billion was announced by the Indian government two years back. As part of this scheme, module manufacturers will be awarded a production-linked subsidy for setting up new facilities. Nearly 50 gigawatts of module manufacturing capacity would be eligible for these subsidies.
The government has also announced measures like the basic customs duty, making imported modules more expensive and domestic modules more attractive to project developers. The government also launched the Approved List of Models and Manufacturers and bound project developers to use modules manufactured by companies recognized under this list. So far, no foreign company has been made part of this list.
Many Indian companies are also expanding production capacity in order to export to international markets like Europe and the United States. There are increasing concerns in these markets over human rights issues related to production of Chinese modules. Expansion of module production facilities in the United States is being driven by the prospect of subsidies under the Inflation Reduction Act.
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