Premier Energies Suspends Plans for US Solar Cell Factory

06 Feb 2025 CW Team

Premier Energies, a leading solar manufacturer in India, has decided to put on hold its plans to establish a 1 GW solar cell manufacturing facility in the United States. The decision comes in response to on-going uncertainty surrounding federal policies on climate and energy investments.

The solar cell manufacturing segment remains a crucial yet underdeveloped part of the solar supply chain, requiring significantly more capital investment compared to module assembly. While the United States has substantial capacity for module production, solar cell manufacturing has remained a bottleneck due to high costs and supply chain dependencies.

The temporary suspension follows an executive order from the Trump administration that halted federal spending on climate and energy initiatives, creating widespread uncertainty in the industry. The lack of clarity on the future disbursement of tax credits under the US Inflation Reduction Act (IRA) has further contributed to hesitation among investors. Since the IRA’s passage in 2022, the US clean energy sector has witnessed significant investment announcements, but recent policy shifts have introduced ambiguity regarding its future implementation.

Premier Energies had initially announced the factory plans in July 2024 as part of a joint venture with module manufacturer Heliene. The partnership aimed to source 1 GW of n-Type solar cells for Heliene’s module assembly operations in the United States. Currently, Heliene procures solar cells from Premier Energies’ Hyderabad facility for its module production unit in Mountain Iron, Minnesota.

With the evolving regulatory landscape, Premier Energies intends to reassess its strategy once the policy direction becomes clearer. The company remains committed to expansion but will proceed based on a more stable market environment.

News source: PV Magazine

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