US-based First Solar announced on July 29 that it intends to invest US$684 million to set up a vertically integrated production base in Indian state of Tamil Nadu. Once completed, the base will contribute to the company’s efforts in growing its overseas business operations.
According to the official press release about this announcement, the production capacity of the proposed base will initially start at 3.3GW and then eventually expand to 16GW by 2024. If the Indian government approves this project in a timely manner, then the base should enter operation in the second half of 2023. First Solar is also hoping that the Indian government will provide satisfactory incentives. The coverage by some energy news websites indicates that the actual implementation of the project depends in part on some concessions from the Indian government.
Commenting on the proposed base in India, Mark Widmar, CEO of First Solar, said that the Indian market is attractive for First Solar because of the targets and programs that favor the development of solar PV. Widmar also said that more importantly, the Indian government is fostering domestic manufacturing and energy security by combining renewable energy targets with well-designed trade and industrial policies. Widmar added that First Solar has many long-term clients in India, and the proposed base in Tamil Nadu will provide advanced, made-in-India PV modules. This, of course, will please both the Indian clients and the Indian government.
The Indian government has been trying to reduce imports of PV products from China and other countries. Starting from April 2022, the Indian government will levy a 40% customs duty on imported modules and a 25% customs duty on imported cells. It should be noted that these tax rates will be the basic rates from that point forward. Furthermore, a series of financial incentives were introduced during the first half of this year to help PV product manufacturers to set up shop in the country.
K. Singh, Indian Minister of State for Power and New and Renewable Energy, publicly stated earlier that it is “unhealthy” for Chinese companies to dominate the global PV market, and that there is a need to establish production bases for PV products outside China. Widmar also repeatedly pointed out that the Indian PV market needs to rely less on the the supply chain in China for c-Si PV products, and that First Solar is a vertically integrated non-Chinese manufacturer. In the press release, Widmar praised the Indian government for decisively responding to China’s strategy of “state-subsidized global dominance” and contended that other countries should adopt the same approach in order for non-Chinese manufacturers to compete on a level playing field. In addition to its main production base in the US (i.e., Ohio). First Solar also has facilities in Malaysia and Vietnam.
First Solar is currently building a new facility in Ohio. The press release stated that the proposed base in India will be the same as that one with respect to design and manufacturing technologies. The products that First Solar offers are modules featuring thin-film CdTe cells. The company claims that its thin-film technology is highly mature and has advantages over conventional the c-Si technology in terms of durability, carbon footprints, and cost. Furthermore, First Solar has developed a recycling program that recovers more than 90% of Cd and Te from its modules.
