Indian solar manufacturer Waaree Energies will expand its ingot, wafer, cell and module production capacity by 6GW after a second round of equity funding of around INR 10 billion ($121 million).
The financing, led by Indian investment firm ValueQuest, follows the INR 1,923 crore provided to Waaree in March this year under the Government of India's Capacity Linked Incentive (PLI) scheme.
With this funding, Waaree will continue to increase production capacity. Previously, Waaree announced last year that it will expand its annual module production capacity to 12GW, and will continue to increase production capacity after it is put into operation in March 2023.
India’s domestic solar capacity in the second round of PLI plans is just under 40GW, significantly lower than its original target of 65GW. An April report by industry analyst JMK Research predicted that by 2026, India's nominal PV module capacity will reach 110GW.
Hitesh Doshi, Chairman and Managing Director of Waaree Energies, said: "We believe that this funding will help us grow, expand our market presence and drive positive change in the renewable energy transition."
Adani, also an Indian solar manufacturer, recently raised $349 million to expand its integrated integrated capacity of 10GW.
The Indian market has seen supply issues following the implementation of the Basic Duty (BCD) and Approved List of Models and Manufacturers (ALMM) policies. These policies impose tariffs on solar product imports and limit the companies and products that can operate in India.
The government had to relax the ALMM policy for two years in February this year as procurement problems persisted, and experts say the shortage will continue until the end of the year, with more capacity expected to start coming online in 2024.