Image Source : ThePrint
In a major push toward domestic solar manufacturing, Insolation Energy Ltd has secured a ₹11.34 billion loan from the Indian Renewable Energy Development Agency (IREDA) to finance its upcoming 4.5 GW solar cell facility in Madhya Pradesh. The sanctioned funds will be channelled through its wholly owned subsidiary, Insolation Green Energy, which broke ground on the project on August 25, 2025. The facility, located in the Power and Renewable Energy Equipment Zone at Mohasa Babai in Narmadapuram district, marks Insolation’s first manufacturing venture outside Rajasthan.
This strategic investment is expected to significantly enhance India’s solar cell production capacity, support the government’s Make in India initiative, and reduce reliance on imported photovoltaic components.
Key Highlights From The Financing And Project Launch
- IREDA sanctions ₹11.34 billion loan to Insolation Green Energy
- Funds to support construction of 4.5 GW solar cell and 18,000 MT aluminium frame facility
- Project spread across 45 acres in Madhya Pradesh’s renewable energy manufacturing zone
- Total investment pegged at ₹16 billion, with completion targeted by FY2027
- Facility expected to generate over 1,600 direct and indirect jobs
- Insolation’s fourth manufacturing unit and first outside Rajasthan
Facility Overview And Manufacturing Scope
The new plant will house advanced production lines for n-type and tunnel oxide passivated contact (ToPCon) solar cells, along with a dedicated aluminium frame unit. The facility is designed to meet rising domestic demand and support large-scale solar deployment across India.
Key features include:
- Annual production capacity of 4.5 GW solar cells
- Aluminium frame output of 18,000 metric tonnes
- Integration with existing module manufacturing operations in Jaipur
- Alignment with ALMM List-II compliance for government projects
The Madhya Pradesh facility complements Insolation’s existing 3 GW module plant in Rajasthan, bringing its total operational module capacity to 4 GW. The company aims to scale up to 8 GW of modules, 3 GW of cells, and 54,000 MT of aluminium frames by FY2027.
Strategic Rationale And Market Impact
India added 11.6 GW of solar cell capacity in calendar year 2024, according to Mercom’s State of Solar PV Manufacturing in India 2025 report. Insolation’s expansion is expected to further consolidate India’s position as a global solar manufacturing hub.
The project will:
- Strengthen domestic supply chains for solar components
- Reduce import dependency from China and Southeast Asia
- Enable faster deployment of utility-scale solar projects
- Support government targets under the Production Linked Incentive (PLI) scheme
Employment And Regional Development
The Madhya Pradesh facility is projected to create over 1,600 jobs, both directly and indirectly. Local hiring and skill development initiatives will be rolled out in partnership with state agencies, contributing to regional economic growth.
The plant’s location in Narmadapuram also positions it strategically near key logistics corridors, enabling efficient distribution of finished products across India.
Leadership Commentary And Forward Outlook
Manish Gupta, Chairman and Whole-Time Director of Insolation Energy, stated that the new facility reflects the company’s long-term commitment to India’s clean energy transition. Vikas Jain, Managing Director, added that partnering with Madhya Pradesh marks a significant milestone in Insolation’s growth journey.
With IREDA’s financial backing and strong policy tailwinds, Insolation Energy is well-positioned to lead the next phase of India’s solar manufacturing evolution.
Sources: Mercom India, The Battery Magazine, Saur Energy
Advertisement
Advertisement
