The Premier Energies, based in Hyderabad, has declared a detailed expansion plan of ₹11,000 crore in a significant stride towards supporting the Indian renewable energy objectives. The project will also increase the capacity of the company to produce solar cells as well as solar modules by more than twice the current level, with an overall production of 10.6 GW cells and 11.1 GW modules by September 2026. This is aimed at satisfying the growing demand in India and positioning India in the international market of renewable equipment.

Funding and expansion

The growth will also ensure that the company expands its presence considerably in the two southern states. As Vinay Rustagi, Chief Business Officer at Premier Energies, confides, the plan incorporates 7.4 GW of cell manufacturing capacity in Andhra Pradesh and 6 GW of module capacity in Telangana. The company is presently running with a cell and module capacity of 3.2 GW and 5.1 GW, respectively, in four operational units based in the areas around Hyderabad.

This scaling initiative is deeply rooted in the Approved List of Models and Manufacturers (ALMM) framework of the government. Premier Energies will identify itself with the vision of Make in India by producing capabilities that are in line with ALMM, as it aims at encouraging local industries, creating jobs, and lessening the reliance on imported products.

The huge capital outlay of ₹11,000 crore is being funded by a mix of diversified sources. The company already used the ₹1,300 crore that was raised in its Initial Public Offering (IPO) last year. It has also raised ₹2,200 crore of debt in the Indian Renewable Energy Development Agency (IREDA), which is owned by the state. The expansion will be financed by the rest of the balance with the accruals of the company.

Solar products are in demand, and the company has a domestic order book of ₹13,000 crore. This large backlog will guarantee revenue in the coming year at a minimum. The company is receiving new orders totalling more than ₹2,300 crore in the third quarter of FY26, along with different independent power producers in the country and other important customers, which further justifies the urgency of capacity increase.

Vertical integration

Premier Energies is not only trying to increase output but is also trying a strategy of vertical integration. The second strategy of the company is the upstream move to the production of ingots and wafers. Through the regulation of these basic elements of solar cells, the company intends to emerge among the biggest integrated renewable energy equipment producers worldwide, next to giant manufacturers in China.

This integration will make the operations of the company more resilient in the face of global supply chain disruptions. Besides its fundamental solar industry, Premier Energies is entering related markets, such as battery energy storage uses (BESS) and solar inverters, in an effort to provide one-stop shopping for hybrid energy initiatives.

Conclusion

The ₹11,000 crore growth of the company, Premier Energies, is a landmark event in the Indian solar manufacturing industry. The company is establishing itself as a pillar of the Atmanirbhar Bharat programme by increasing its capacity by 11.1 GW and undertaking comprehensive backward integration. Such massive investments are also critical to the issue of making India self-sufficient concerning renewable energy technology and the shift to a green future, as domestic demand for clean energy grows as a result of government policies and corporate sustainability goals.