Tata Power, one of India’s leading power companies, is poised to capitalize on the central government’s ambitious rooftop solar subsidy scheme, which presents a significant business opportunity exceeding $1 billion. According to Praveer Sinha, Managing Director of Tata Power, the company aims to seize a substantial share of the burgeoning market for solar modules over the next three years.
In an interview, Sinha highlighted the potential of the Prime Minister Surya Ghar Muft Bijli Yojana, an initiative launched in February, which seeks to provide subsidies for rooftop solar installations to 10 million households. With a target of 1 crore homes, the scheme is expected to generate demand for 25-30 gigawatts (GW) of solar modules during its tenure. Tata Power aims to cater to 5-6 GW of this demand, translating to a lucrative business opportunity ranging from $1 to $1.2 billion (₹8,350-10,000 crore).
Sinha underscored Tata Power’s strategic advantage derived from its newly established solar cell and module manufacturing unit in Tamil Nadu, with an annual production capacity of 4 GW. This state-of-the-art facility, set up with an investment of ₹3,000 crore, positions Tata Power as a key player in meeting the mandate of utilizing domestically manufactured solar cells and modules under the rooftop solar scheme.
“The manufacturing plant will be fully operational this year, giving us a significant advantage in leveraging our own domestic cell and module for this scheme,” Sinha explained.
With the impending commissioning of the new manufacturing unit, Tata Power’s total installed solar module capacity will reach 4.9 GW, including the existing 600 MW annual capacity at its Bengaluru plant. Leveraging its extensive network of over 500 channel partners across 450 cities, Tata Power aims to double its network to 1,000 channel partners this year to facilitate the sale of rooftop solar units.
The PM Surya Ghar Muft Bijlee Yojana, approved by the Union Cabinet in February with a budget of ₹75,021 crore, aims to provide subsidies to households covering 60% of the solar unit cost for systems up to 2 kW capacity and 40% for systems of 2-3 kW capacity. This initiative aligns with the government’s broader vision of promoting renewable energy adoption and fostering sustainable development across the nation.
Tata Power’s strategic investments and proactive approach position the company to capitalize on the burgeoning demand for rooftop solar solutions, further solidifying its leadership in India’s renewable energy landscape.
