Tata Power’s 10 GW Solar Manufacturing Push Signals India’s Shift Toward Complete Solar Value Chain Independence

In a move that underscores India’s ambition to achieve full solar manufacturing self-sufficiency, Tata Power Company Limited has announced plans to establish a 10 GW ingot and wafer production facility, a crucial upstream link in the country’s renewable energy ecosystem.

Rather than focusing solely on project deployment, India’s energy sector is now turning its attention to domestic component manufacturing — a segment long dominated by imports from countries like China. Tata Power’s announcement represents this strategic shift, positioning the company at the forefront of India’s solar industrialization.

While India’s solar module capacity has surged to around 100 GW and cell production stands at nearly 27 GW, the domestic capability to produce ingots and wafers — the raw building blocks of solar cells — remains at just 2.2 GW. This stark imbalance has been a persistent bottleneck in India’s renewable value chain.

By setting up this 10 GW facility, Tata Power aims to bridge that gap, enabling greater vertical integration from ingot to module. Industry observers view this development as part of a broader national effort to de-risk India’s solar supply chain, reduce import dependency, and achieve the objectives outlined under the National Programme on High Efficiency Solar PV Modules.

For Tata Power, this strategic expansion also marks an evolution from being a power producer and EPC player to a technology-driven manufacturer. The company already operates 4.9 GW of cell and module production, and this upstream diversification will give it better control over costs, quality, and delivery timelines.

However, this bold move comes at a time when the company is navigating short-term financial pressures. Tata Power reported a net profit of ₹919.4 crore in Q2 FY26 — marginally lower than last year — alongside a slight dip in EBITDA margins due to operational challenges caused by monsoon disruptions and the temporary shutdown of its Mundra plant.

Despite these challenges, Tata Power’s leadership remains confident that manufacturing expansion will fortify long-term growth. The company is also evaluating nuclear project land acquisitions and exploring new thermal capacity to ensure a balanced and resilient energy portfolio.

From a policy standpoint, the timing is significant. With the Indian government set to roll out new incentives for upstream solar manufacturing, Tata Power’s decision could inspire other domestic players to invest in large-scale component production — transforming India from a solar project market into a solar manufacturing powerhouse.

In essence, Tata Power’s 10 GW ingot and wafer plant isn’t just another industrial investment — it’s a strategic signal that India’s renewable energy ambitions are maturing from deployment to domestic capability building, ensuring energy independence and technological competitiveness in the global solar arena.