India's solar panel manufacturer, Waaree Energies, has disclosed plans to invest up to $1 billion in establishing a factory in Texas, strategically tapping into the surging demand for clean energy in the United States. This move aligns with the growing momentum in solar manufacturing following the enactment of President Joe Biden's landmark climate change legislation last year, which introduces subsidies and tax incentives for clean energy initiatives.
As India's solar manufacturing sector gains momentum, the nation is extending its expertise to the United States, as both countries aim to foster a robust clean energy industry to compete with China. Waaree envisions its forthcoming facility in Brookshire, Texas, to become one of the largest solar factories in the U.S. by 2027, boasting an annual capacity of 3 gigawatts (GW) when it commences operations in late 2024, with plans for expansion to 5 GW. The Houston-area plant is anticipated to generate over 1,500 jobs, and the company has set a target to incorporate a solar cell facility by 2025.
Supporting Waaree's ambitious plans is a long-term supply agreement with SB Energy, a clean energy developer backed by Japan's Softbank Group (9984.T). Sunil Rathi, interim CEO of Waaree Solar Americas, highlighted the significance of the new facility in the Houston area, stating that it brings critical technologies to enhance American solar production, thereby reducing dependence on overseas sources while bolstering domestic employment. The commitment underscores Waaree's dedication to meeting the escalating demand for clean energy in the U.S.
Bolstering the incentive for Waaree's U.S. venture is President Biden's Inflation Reduction Act, which provides additional subsidies for solar project developers utilizing American-made equipment, along with new incentives for producers. Waaree asserts that the majority of crucial components in its solar modules will be manufactured in the U.S., aligning with the domestic focus promoted by the current policy landscape.
See also: Waaree Energies Secures 70 MW Solar Project Contract and 135 MW PV Module Supply Deal
Waaree's foray into U.S. manufacturing follows a similar move by a venture backed by India's Vikram Solar earlier this year, which declared a $1.5 billion investment in the U.S. solar supply chain. Notably, Waaree has already made strides in the U.S. market this year by supplying 4 GW of solar modules from its existing facility in India.
