India-China Solar Deal: India Enters China's Solar Market with Inox Solar's ₹7000 Crore Deal

Indian company Inox Solar has recently signed a major deal worth approximately ₹7,000 crore with Longi Green Energy, a prominent Chinese solar energy company. This agreement not only highlights India's escalating technological strength but also signifies the world's increasing reliance on 'Made in India' for green energy solutions. Under this contract, Inox Solar will supply 5 gigawatts of solar modules to Longi over the next three years. This deal is a significant achievement for India's renewable energy sector and its solar industry, indicating a growing global confidence in India's manufacturing capabilities, even from countries like China.

India's Growing Solar Manufacturing Prowess

According to sources from The Economic Times, China's Longi Green Energy will procure modules from Inox Solar for the Indian market. As part of the deal, Longi will assist Inox with its advanced technical expertise and experience in global quality standards. The objective is to ensure that Inox's products meet international quality benchmarks, while this agreement comes at a crucial time when India is rapidly scaling up its domestic production of solar modules to reduce reliance on imports and achieve self-sufficiency.

Inox Solar's Expansion and New Facilities

Inox Solar recently commissioned its new solar module manufacturing plant in Bavla, near Ahmedabad. The first phase has a capacity of 1. 2 gigawatts, which is planned to expand to 3 gigawatts in the next phase. The company is also constructing another large solar cell and module plant in Dhenkanal, Odisha, with a total capacity of 4. 8 gigawatts. These facilities are expected to bring about a significant transformation in India's solar manufacturing landscape.

Upcoming IPO and Future Vision

Inox Clean Energy, the parent company of Inox Solar, is also preparing to go public. The company's IPO is anticipated in the fourth quarter of the current financial year, while this move aims to further solidify its presence in India's rapidly expanding clean energy manufacturing sector. India currently boasts a solar module production capacity exceeding 100 gigawatts, while solar cell manufacturing capacity stands at 27 gigawatts, with expectations to reach 40 gigawatts by the end of this year.

Government Policies Driving Domestic Production

Indian government policies, such as import duties on modules and cells and Domestic Content Requirement (DCR), have played a pivotal role in strengthening local manufacturing. These regulations have incentivized companies to boost production within India, while the agreement between Inox and Longi is a major step in this direction, positioning India as a solid hub in the global solar energy manufacturing supply chain.