Waaree Energies, the Indian solar panel manufacturer, has announced a substantial investment of up to $1 billion to establish a factory in Texas, responding to the surging demand for clean energy in the United States. This move aligns with the momentum seen in solar manufacturing following the enactment of President Joe Biden’s landmark climate change legislation, which provides incentives and tax breaks for clean energy initiatives. As India’s solar manufacturing sector gains momentum, it is strategically leveraging its expertise to contribute to the United States’ efforts to develop a robust clean energy industry, positioning itself as a competitor to China in this space.
Waaree envisions its planned facility in Brookshire, Texas, to become one of the largest solar factories in the U.S. by 2027. The facility, set to open in late 2024, aims for an initial annual capacity of 3 gigawatts (GW) of solar panels, with subsequent expansion to 5 GW. The project is expected to generate over 1,500 jobs in the Houston area, contributing significantly to the local economy. Waaree also has plans to incorporate a solar cell facility into its operations by 2025. This venture by Waaree is enhanced by a long-term supply agreement with SB Energy, a clean energy developer supported by Japan’s Softbank Group. The Houston-area facility is strategically positioned to enhance American solar production by introducing critical technologies, thereby reducing dependence on foreign sources while fostering job growth in the United States.
Sunil Rathi, interim CEO of Waaree Solar Americas, emphasized the company’s intend to meet the growing demand for clean energy in the U.S, “By setting up the new facility in the Houston area, Waaree brings critical technologies that will boost American solar production, reducing reliance on overseas sources while supporting strong U.S. jobs. We are committed to the U.S. and its growing demand for clean energy. Under Biden’s Inflation Reduction Act, solar project developers receive additional subsidies for using American-made equipment, and producers also receive new incentives.”
Waaree’s decision to set up manufacturing operations in the U.S. aligns with the incentives provided by Biden’s Inflation Reduction Act. This legislation offers additional subsidies for solar project developers utilizing American-made equipment, providing a boost to domestic manufacturing. Under these incentives, Waaree plans to manufacture most major components of its solar modules within the United States, further contributing to the growth of the local solar supply chain.
This move follows a broader trend in the solar industry, with Indian-backed ventures making significant investments in the U.S. solar supply chain. Earlier this year, a venture supported by India’s Vikram Solar pledged a substantial investment of $1.5 billion in the U.S. solar supply chain, reflecting the increasing collaboration between Indian and American entities in advancing clean energy initiatives. Waaree has already made substantial inroads into the U.S. market this year by supplying 4 GW of solar modules from its Indian factory. This proactive approach reflects Waaree’s broader vision to support the global transition to sustainable energy and capitalizing on the rising opportunities in the U.S. clean energy market.
