Solex Energy To Invest INR 400 Billion in 5GW Solar Cell And 10GW BESS Factories in Gujarat

Project Details

The MoU, signed by Solex Energy's Director Vipul Shah and Gujarat's Industrial Commissioner Swaroop P (IAS), involves a two-phase solar cell plant: Phase I will establish 2GW capacity, with Phase II expanding to a total of 5GW. The 10GW BESS factory will cover the full value chain, including battery cells, packs, BMS, and system integration, catering to grid, industrial, and export markets. The Gujarat government will provide policy support and land allocation without equity participation or operational involvement.

The total investment covers land, construction, equipment, R&D, and initial operations, with the factory location pending final land approval from the state government.

Company Profile

Headquartered in Surat, Gujarat, Solex Energy operates a 4GW fully automated, Industry 4.0 PV module factory in Tadkeshwar. This new investment represents its first major foray into upstream solar cell production and large-scale energy storage, transforming it into a vertically integrated renewable energy enterprise.

"This investment reflects our commitment to India's clean energy future, enhancing domestic manufacturing autonomy and creating local employment," said Chetan Shah, Chairman and Managing Director of Solex Energy.

Why Gujarat?

Gujarat's favorable policy environment, including simplified approval processes, BESS subsidies, GST reductions (from 12% to 5% for PV/storage equipment), and transmission charge exemptions, made it the ideal location. The state's industrial cluster, with giants like Reliance, Adani, and Tata Agratas, also provides a robust supply chain and talent pool.

Industrial Significance

The project aligns with India's push for domestic PV manufacturing, helping avoid import tariffs (40% on modules, 25% on solar cells) and meet the 2030 500GW renewable energy target. It will create thousands of high-skilled jobs, boost local supporting industries, and consolidate Gujarat's position as a clean energy manufacturing hub. Following the announcement, Solex Energy's stock price rose 1.63% to 3.5%.

Competitive Landscape

The investment elevates Solex Energy to the top tier of Indian PV manufacturers, intensifying competition with Reliance (20GW+ planned capacity) and Adani (a global top PV module maker). Solex will focus on high-efficiency cells and storage to differentiate itself in the market.

This investment advances Solex's strategic transformation while supporting India's energy independence and renewable transition, solidifying Gujarat's status as a global clean energy manufacturing hub.