Premier Energies Eyes BESS, Inverter Biz To Diversify Growth

Premier Energies Eyes BESS, Inverter Biz To Diversify Growth

Indian solar cell and module manufacturer Premier Energies is venturing into battery energy storage systems (BESS) and the inverter business, as it looks to diversify its clean energy portfolio and boost profitability, top executives said during the company’s latest investor call.

The firm, which has launched an ambitious “Mission 2028” to build a fully integrated 10 gigawatt (GW) solar manufacturing ecosystem, plans to invest in 12 GWh of battery storage capacity across two phases starting in FY27, along with a new inverter production line.

“On BESS, we will start with a cell-to-pack manufacturing line, along with EPC offerings to IPP customers,” said Chiranjeev Saluja, Managing Director of Premier Energies. “The first 6 GWh phase will come up in FY27, and the second in FY28.”

Vinay Rustagi, Chief Business Officer, said the inverter business is also expected to be a high-margin segment.

“Based on our modelling, both BESS and inverters are very attractive in terms of EBITDA margins and return on capital employed,” he said. “We believe this diversification will support long-term value creation.”

Scaling up manufacturing footprint

Premier Energies is currently expanding its solar capacity with the construction of a 4.8 GW TOPCon cell line, a 5.6 GW module line, and a 2 GW wafer plant being developed in partnership with Taiwan’s SAS. The company is also building a 1.2 GW TOPCon cell line, scheduled for commissioning in June 2026.

Land acquisition for its entire 10 GW wafer target has been completed, with state-level environmental approvals underway.

The company has also announced plans to set up a 1.2 GW solar cell line in the United States, subject to policy clarity. With limited domestic cell production in the US and strong demand from module manufacturers, Premier plans to supply cells while avoiding direct competition with its American clients on modules.

Watch Saur Energy’s recently-held video podcast with Mr Rustagi from Premier Energies

India’s solar sector posted a stellar performance in FY25, with most listed firms reporting record profits and expanded margins across the value chain. Out of the 15 companies tracked, only two—SJVN and Borosil Renewables—reported a dip in profit growth.

Policy support and domestic demand

Executives cited strong demand visibility from government-led initiatives such as PM Surya Ghar Yojana, KUSUM, and CPSU schemes, which target around 65 GW of solar installations in the next two years. These programmes mandate the use of domestically manufactured (DCR) modules, creating tailwinds for Premier’s business.

With the Approved List of Models and Manufacturers (ALMM) set to include solar cells from June 2026, the domestic market is expected to transition toward 100% DCR compliance, further boosting demand for local manufacturers.

Rustagi said India’s cell manufacturing capacity would be sufficient to meet national demand by mid-2026, and no further exemptions under ALMM are anticipated.

Investment and financial strategy

Premier Energies plans to invest around ₹125 billion over the next three years to execute its manufacturing and technology roadmap. Most of the funding will go into the ongoing solar lines in the current fiscal, with battery storage and inverter investments phased in gradually.

The company intends to fund the capex through internal accruals and available cash, maintaining a debt-to-equity ratio of 1.4x at peak levels. Fixed asset turnover is expected to range between 2.2 to 2.5 times, supported by a strong order book and project pipeline.

While Premier does not share quarterly revenue data, it expects revenues and profits to scale in line with new capacity additions, especially with strong visibility in the DCR-backed Indian market.

U.S. outlook and innovation

The United States remains a key export market, especially for cells, due to a structural shortage in domestic cell manufacturing. However, Premier is taking a cautious approach amid ongoing trade negotiations and evolving tariff regimes.

The company continues to export high-efficiency solar cells to US-based module makers and plans to scale up these exports from FY27, once its new capacities become operational.

Premier is also conducting R&D on emerging technologies like BackContact and SkyTandem, in addition to its current focus on TOPCon, which underpins all new lines. It is also engaging with central and state governments to avail subsidies for upstream manufacturing under schemes like SPECS.

“Our goal is to remain ahead of market trends and to deliver all projects on time and on budget,” Saluja said. “With investments in scale, integration and technology, we are well-positioned to lead India’s clean energy transition.”