The Solex Energy View On Overcapacity, Technology Going Ahead

Surat, Gujarat-based Solex Energy, which is setting up a 2.2 GW N-Type TOPCon Plus solar cell production line hopes to commence operations by March 2027. The firm's management  shared some of the key challenges solar manufacturers face in developing solar cell projects during an investor call last week. 

Chetan Shah, Chairman and Managing Director (MD) of Solex Energy, described access to electricity and water as the two major challenges that every manufacturer faces, based on the shared experiences of companies expanding solar cell manufacturing in India. Solex has planned a phased rollout of its solar cell manufacturing capacity and has opted for German back-contact technology from ISC Konstanz, unlike most Indian companies that rely on Chinese technology.

Sharing the company’s plan, Shah said, “We are doing 10 GW of cells, of which 2 GW we are doing immediately, followed by an additional 3 GW and then 5 GW. This roadmap will align with the technology curve and ensure the right technology at the right time. That is how ISC Konstanz will work with us in the future.”

1. Addressing Land, Water, and Electricity Availability

A key component in developing solar cell manufacturing capacity is access to land and a reliable source of water and electricity. Shah said Solex is in discussions with the electricity board to secure power for 5 GW, and is planning water availability of 2 MLD initially, which will increase once the company reaches 5 GW.

To meet future water requirements for solar manufacturing, Shah said the company will not rely solely on groundwater, unlike others. Instead, it is considering both canal water and groundwater. “We do have certain sites near the canal, where water availability is there, and groundwater as well. Those companies that did not take this seriously are now facing operational problems,” he said. Shah's assertions exlain why states like Odisha and Madhya Pradesh have used electricity supply and subsidies as a key plank in their pitch to solar players.   

2. Backtracking Technological Advancement

Technology is another key element in developing a solar cell line. Despite China being a major player, Solex decided to rely on German-based ISC Konstanz for back-contact technology. Shah said this aligns with the company’s long-term technological goals.

“ISC Konstanz is a German research and R&D institute. They invented this technology in 2018 and then passed it on to a few Chinese manufacturers like AIKO and LONGi,” Shah said, adding that Solex has been in discussions with them for some time. The move comes even as Mono-Perc technology, the mainstay of solar manufacturing in India for now, is on its way out in China, with IBC expected to grab an increasing share along with TOPCon.  

3. Export Expansion Plans

Shah said Solex has long-term plans to develop its Indianised rear-contact cell technology and build enough capacity to cater not only to the Indian market but also to global demand.

“We are working to frame policy and the steps and initiatives to get into the R&D part of this in association with ISC Konstanz,” he said.

He added that the upcoming 2.2 GW TOPCon Plus cell line will support Solex operationally. “They will monitor the output and quality as an outsider eye and guide us to ensure we do not waste time ramping up. This will help us achieve higher efficiency, better payback, and ROI on our cell investment.”

4. Dismissing Overcapacity Fears – Demand Will Grow

Addressing concerns about potential overcapacity in the solar industry, Shah said demand remains strong enough to absorb the manufacturing being built.

He explained that in 2019, India added 8–10 GW of renewable capacity annually, which increased to 30 GW last year, and is likely to reach 40 GW this year, demonstrating consistent demand.

Earlier, of the 8–10 GW installed annually, 95% of modules were imported and only 5% were supplied by Indian factories. Now, the entire 40 GW is being supplied domestically, which he said reflects both demand and India’s manufacturing strength.

With the rise of hybrid projects, Shah said solar module demand will increase further.
“For night consumption, there is no supply from renewable energy. There is very little from wind, which is seasonal. BESS will take care of feeding the grid at night. That means solar panel requirements will double in a couple of years. If we are doing 30–40 GW currently, with BESS the business will increase to 60–70 GW. So, I think the future is bright for solar panels.”

5. Repowering Old Projects Will Require New Capacity

Another factor countering overcapacity concerns is the trend of repowering renewable projects. Shah said many older projects are entering the repowering phase, creating additional demand.

He explained that older panels — 200–250 Wp — are being replaced with 625–650 Wp higher-efficiency panels in countries like Europe. India is seeing only a few projects repowered so far, but this will rise. Emphasising the point, Shah said, “I do not see any challenge in terms of demand or oversupply for a couple of years. I get questions about oversupply because of the manufacturing capacity built in India, but that is only module capacity. The real capacity that will decide the future is cell capacity.”

He added that many new entrants have small module capacities and will have to align with larger players.
“Some capacities are for N-Type modules, and a lot are still old Mono-PERC. They will either have to close or replace it,” he said.

Smaller players may support project developers in the short term, but many will choose not to reinvest or expand.
“Most small players will avoid replacing and reinvesting because existing players have grown bigger and expanded. Market dynamics will change, but I do not believe India is entering overcapacity,” Shah said.