India’s Waaree Energies is taking proactive steps to combat potential tariffs on India-made solar modules by doubling its manufacturing capacity at its Texas factory. The company is set to add another 1.6 gigawatts (GW) of solar module manufacturing capacity at its Brookshire factory, bringing the total capacity to 3.2 GW. This move is in line with the company’s larger strategy of de-risking its global footprint.
The decision to expand the manufacturing capacity in Texas comes after the US imposed a 26% reciprocal tariff on solar modules imported from India, in addition to the existing 14.5% Section 201 tariff, resulting in a total tariff of around 40%. This has prompted Waaree Energies to ramp up its production capabilities in the US to mitigate the impact of these tariffs.
Waaree Energies first announced its plans to open the Texas factory in December 2023, marking its first foray into the US market. The initial goal was to have a capacity to manufacture 3 GW of solar modules annually by the end of 2024. The company is now planning to invest up to $1 billion to scale its annual solar panel production to 5 GW in Texas by 2027, making it one of the largest solar panel factories in the US.
Dr. Amit Paithankar, whole-time director and CEO of Waaree Energies, emphasized the company’s commitment to powering America’s energy future despite the challenges posed by the tariffs. He stated, “The strength of our US order book is a testament to the trust we’ve built, and this expansion is a signal – we’re here, we’re growing, and we’re deeply invested in powering America’s energy future.”
Prior to manufacturing in Texas, Waaree Energies, headquartered in Mumbai, had been supplying Indian-made solar panels to the US. The decision to expand manufacturing operations in Texas reflects the company’s strategic approach to navigate the evolving landscape of global trade and ensure a reliable supply of solar modules to the US market.
In conclusion, Waaree Energies’ expansion of its manufacturing capacity in Texas underscores its commitment to meeting the growing demand for solar energy in the US market. By doubling its production capabilities, the company aims to strengthen its presence in the US and contribute to the country’s transition towards renewable energy sources.
