TPREL Bets Big With Rs 6,500 Cr Solar Manufacturing Investment

Tata Power on Thursday announced a major solar manufacturing investment, with its subsidiary Tata Power Renewable Energy Limited (TPREL) planning to invest up to Rs 6,500 crore in a photovoltaic ingot and wafer manufacturing facility.

The move marks a clear step into upstream solar production as the company strengthens its clean energy strategy.

The proposed facility will have a total capacity of up to 10 GW, to be developed in two phases of 5 GW each. With this, TPREL is entering upstream solar manufacturing, focusing on ingots and wafers, which are critical raw materials used in solar cell and module production.

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This solar manufacturing investment is designed to support backward integration, allowing the company to reduce reliance on imports, especially from China, which currently dominates the segment. It also aligns with India’s broader push for domestic manufacturing and self-reliance in clean energy, particularly with upcoming regulatory requirements like ALMM List III.

The company said the initiative will not only generate new revenue streams but also offer strategic advantages. These include improved supply security for its downstream solar operations, better profit margins through vertical integration, and a strong foothold in a capacity-constrained domestic market. TPREL expects the project to deliver solid financial returns, with a projected payback period of around five years.

The board of TPREL has approved this new line of business, signaling confidence in long-term demand and supportive policy frameworks. The company also aims to leverage government incentives and protective measures that encourage domestic solar manufacturing.

With this move, Tata Power is positioning itself as a more integrated renewable energy player while contributing to India’s clean energy goals.