India’s solar power energy sector has seen remarkable forward movement and has currently emerged as the most promising and dynamic of all markets. Estimated at 100 GW in 2025, it is expected to scale up to 195.11 GW within the next five years.
With an encouraging and supportive ecosystem provided by the government and its policies, aided by technological interventions, India is making its way towards a cleaner, greener, and more sustainable energy environment. With rooftop solar initiatives, large-scale utility projects, and a strong push for local manufacturing, India is presently counted among the top global solar producers.
We are delighted to be joined by a key player who is at the helm of these developments and transformations – First Solar, a global leader in thin-film photovoltaic solar modules. The company is also one of the few manufacturers with a significant presence in India. With its vision on innovation, sustainability, efficient manufacturing processes, and local engagement, First Solar, apart from supplying cutting-edge technology like IoT and AI that enhance efficiency and reduce maintenance costs of solar power systems, is also contributing to India’s goal of achieving 500 GW of non-fossil fuel capacity by 2030.
While challenges remain around the intermittent nature of solar energy that requires storage solutions and grid integration, research and development are ongoing to pave the way forward.
We talk to Sujoy Ghosh, Vice President and Country Managing Director – India, First Solar, India, to get insights on the company’s vision in India and how it is navigating opportunities and challenges in one of the world’s fastest-growing clean energy markets.
Q: The stakes for establishing India's first fully vertically integrated solar manufacturing facility must have been incredibly high, given the competitive landscape. What key factors gave First Solar the edge in securing this opportunity?
First Solar's decision to invest over Rs 5,600 crores in India and create more than 1,000 high-skilled jobs stemmed from a unique alignment between the company's differentiating strengths and the Indian government's requirements as outlined in various policies and regulations. These factors included the government's clear commitment to developing resilient solar PV supply chains and reducing reliance on imports from a monopolistic value chain concentrated in China. First Solar’s cadmium telluride (CdTe) technology is distinguished by its non-China origin, which aligns perfectly with these objectives. Furthermore, CdTe technology has a proven track record of delivering superior energy yields under India’s unique geographic conditions compared to other PV technologies. As a result, we are ideally positioned to provide the Indian market with locally manufactured PV modules that offer best-in-class reliability and affordability.
Q: What strategic advantages does this plant offer in terms of technology differentiation, supply chain resilience, and India's broader vision of clean energy self-reliance? How does it compare to your global facilities?
Our Indian and American manufacturing facilities for our Series 7 modules share the same production processes and bill of materials, with some variations in the mounting configurations.
The strategic advantage of launching our new facility in just 19 months includes (a) demonstrating that such facilities can be permitted and constructed to meet global standards by leveraging the local ecosystem; (b) showcasing that India has the necessary infrastructure and talent pool to operate these facilities at scale; and (c) proving that ancillary supply chain localization can be achieved in a relatively short timeframe. The result is that India can now manufacture solar modules that are competitive on a global scale.
Q: The Union Budget proposed an ambitious energy diversification plan. Do you think India’s push towards this diversity could affect the pace of solar growth, or will they complement each other?
Solar energy is currently the most affordable source of energy on the Indian grid. So any plan for energy diversification must place renewables, particularly solar, at its centre. The budget announcements from February 2025 further emphasize the government's commitment to decarbonizing the energy sector by exploring all non-fossil fuel sources, with a strong emphasis on enhancing domestic production within the clean energy value chain.
Q: The Indian solar sector has rapidly scaled up module production, but cell and wafer manufacturing still lag behind. How can organizations contribute to strengthening this part of the supply chain?
Acknowledging that localizing cell production is essential for developing the solar PV value chain, the government has introduced a regulation to include solar cells in the ALMM List-2 as of December 2024. This regulation will be applicable to all new bids immediately and for projects outside the bidding process starting in June 2026. Cell manufacturing is more capital-intensive and complex, with a longer gestation period required for establishing operational cell lines. The encouraging news is that domestic capital markets have shown a strong willingness to invest in backward integration within the PV sector, indicating that funding is not a limiting factor. Several large, diversified industrial groups with robust balance sheets and proven manufacturing capabilities are entering this segment. Provided that policies remain stable, the backward integration of the value chain will naturally evolve as a progression of the industry.
Q: Collaboration is key in solar—how do you navigate partnerships with government, industry, and financial institutions?
The solar PV industry is constantly evolving, driven by technological advancements, geopolitical challenges in the supply chain, and emerging demand generation models. A continuous emphasis on educating stakeholders about these developments is essential for enhancing the industry's capacity to effectively engage investors and develop value chains in India. Platforms such as RenewX are crucial in fostering stakeholder awareness and building consensus on the future direction of the sector.
Q: What next-gen PV technologies best suit India’s climate, and how soon can we expect them at scale?
The CdTe semiconductor used in First Solar’s thin-film PV technology is particularly well-suited for hot and humid climates. Its high band-gap material offers superior temperature coefficients, lower long-term degradation rates, and improved spectral response to light in humid conditions. In the Indian climate, thin-film PV modules generate more lifetime energy compared to crystalline silicon modules with the same installed capacity. It’s also worthwhile considering that tandem multijunction PV modules, which combine two different semiconductors, represent the next evolution in PV technology, and we believe that there can be no tandems without thin films. Thin-film PV technology represents the future of PV, and by manufacturing it in India, we have already established a strategic advantage here.
Q: Circularity is becoming critical in solar. How can India adopt sustainable practices in manufacturing and recycling?
During its G20 presidency, the Government of India launched the Industry Coalition on Resource Efficiency and Circular Economy (RECEIC), reflecting its commitment to promote a “zero defect, zero effect” approach in manufacturing. In the solar sector, there is a mandate under the electronic waste rules, effective January 2023, that requires the recycling of PV modules at the end of their lifecycle. While this overarching regulation is well established, specific targets, definitions of what constitutes recycling, and crucially, the payment mechanisms for recyclers remain unclear. The Ministry of Environment, Forest and Climate Change (MoEFCC) is actively collaborating with the solar industry to develop detailed guidelines and address the challenges associated with managing solar PV waste.
Q: You have led First Solar in India through significant milestones, including the launch of the Chennai facility. What were some of the biggest challenges you faced, and how did you overcome them?
First Solar's investment announcement came in August 2021, and the entire process of permitting, construction, and hiring took place during the COVID pandemic. One of the biggest challenges we faced as a team, along with our EPC contractors and the state government, was ensuring that project activities continued without disruption caused by COVID protocols. This necessitated meticulous planning and the establishment of a culture focused on safety and awareness, which the team managed very professionally. Another concern was the complexity of obtaining permits and approvals to commence construction and operations. In this regard, the Tamil Nadu state government used technology to streamline the process, allowing land information and all necessary permits and approvals to be handled online through a single-window system, eliminating the need for manual intervention, which accelerated processing, reduced administrative costs, and improved transparency.