Tesla Explores Partnerships for Rooftop Solar Panel Manufacturing in India
Tesla is actively seeking local partners in India to manufacture its rooftop solar panels, an anonymous source has revealed. Under this arrangement, the chosen partner would be responsible for manufacturing and installation, while Tesla would provide the necessary technology and sales expertise. The company has already communicated its plans to the government and is now looking for subsidies and grants to support the project. In addition to its electric vehicles, Tesla also produces solar power generation and storage products such as Solar Roof, Powerwall, and solar panels.
This strategic move by Tesla comes as its US solar business has experienced a decline, with deployments decreasing by 59% in the December quarter. Conversely, India has introduced incentives to promote the rooftop solar sector, creating a significant opportunity for Tesla. Notable players in the Indian solar rooftop sector include Tata Power Solar, Adani Solar, Servotech Power Systems, and Waaree Energies.
Tesla entered the solar rooftop business in 2016 through the acquisition of SolarCity, becoming the market leader in the US with over 800MW installed at the time. Analysts predict that India’s solar rooftop capacity will continue to grow at an annual rate of 47%. As of December, India’s total installed rooftop solar capacity stood at 11.1GW, with the residential sector accounting for 2.7GW of that.
However, India still falls short of its target of achieving 40GW of rooftop capacity by 2022. To address this shortfall, the government launched the Pradhan Mantri Suryodaya Yojana, a scheme aimed at bringing rooftop solar projects to 10 million households, generating up to 300 units of electricity per month and reducing electricity costs. The scheme requires the use of locally-made solar modules, creating a demand opportunity for domestic manufacturers.
These plans for solar panels in India align with Tesla’s ongoing engagement with the Indian government to introduce its electric vehicles to the country. The company has requested certain concessions, including lower import duty rates for its vehicles. Tesla has expressed its willingness to invest up to $2 billion in setting up a factory in India if a concessional duty rate of 15% on imported cars is granted for the first two years, compared to the current rate of 70-100%.
Tesla’s plans in India gained momentum after CEO Elon Musk met with Prime Minister Narendra Modi during his visit to the US in June. India’s minister for commerce and industry, Piyush Goyal, subsequently paid a visit to Tesla’s factory in California. Since then, Tesla executives and Indian officials have been working on the details of the company’s entry into the Indian market.
Analyst comment
Positive news: Tesla is looking for local partners in India to manufacture its rooftop solar panels, taking advantage of the country’s incentives and growth potential in the sector. This move is in line with Tesla’s ongoing engagement with the Indian government, which could boost its efforts to bring electric cars to the country.
As an analyst, this move by Tesla is likely to have a positive impact on the market. It could help Tesla revive its solar business and tap into the growing rooftop solar sector in India. Collaborating with local partners and seeking subsidies and grants shows the company’s commitment to establishing a presence in the Indian market.
