INDUSTRY OUTLOOK

1. Strong Policy Backing

Government Push: India targets 500 GW of non-fossil capacity by 2030, with solar contributing ~300 GW.

PLI Scheme (Production Linked Incentive): ₹24,000+ crore allocated to boost domestic solar PV manufacturing, creating demand for integrated platforms.

Bidding Reforms:Hybrid, round-the-clock (RTC), and storage-integrated bids are promoting scale, grid stability, and investor interest.

2. Demand for Integration

Supply Chain Security:Global disruptions (e.g. from China) have led Indian developers to invest in local module manufacturing.

Vertical Control: IPPs like ReNew, Adani, and now Inox Clean Energy are building end-to-end models to reduce:

Cost volatility

Import dependence

EPC and O&M risks

Customer Preference: Captive and C&I customers prefer integrated players for faster execution and lifecycle accountability.

3. Improving Unit Economics

Module Prices:Have declined globally but domestic pricing remains attractive due to Basic Customs Duty (BCD) and Approved List of Models and Manufacturers (ALMM) enforcement.

Capex Optimization: Vertically integrated IPPs reduce EPC costs by ~8–12%, enhancing IRRs by 100–200 bps.

Financing Leverage: Integrated players can cross-subsidize manufacturing losses (if any) with generation cash flows.

4. Key Trends Shaping the Sector

5. Key Challenges

Capital Intensity: High upfront investment required across manufacturing and IPP arms.

Execution Risk: Synchronizing manufacturing timelines with project deadlines.

Technology Lock-in:Rapid evolution in cell/module technology may outdate new facilities quickly.

Policy Volatility:Fluctuating import duties, PPA renegotiations, and grid constraints remain risks.

Strategic Outlook

India’s solar sector is transitioning from fragmented developers and third-party EPCs to vertically integrated energy platforms. Companies like Adani Green, ReNew Power, Tata Power Renewables, and now emerging players like Inox Clean Energy are building this model.

Latest shareholding pattern of Inox Clean Energy Ltd.