Tesla is actively pursuing local partnerships in India to manufacture rooftop solar panels to diversify its activities beyond electric vehicles. The Elon Musk-led company intends to partner with Indian companies that manage solar panel manufacturing, while Tesla will provide technology and sales skills.
The development is consistent with the Indian government’s ambitious goals to illuminate one crore houses under the PM Surya Ghar project. In the middle of the obstacles that Tesla’s solar operations in the United States encounter, this presents an opportunity.
In 2023, Tesla proposed to the Indian government a plant to manufacture battery storage devices based on its PowerWall technology. While discussions about building an electric vehicle manufacturing were taking place, attention was drawn to Tesla’s plans for battery storage, highlighting India’s potential in this sector.
Despite the government’s lack of incentives for a battery storage facility, customer subsidies for Tesla’s products were proposed, resulting in a mutually advantageous business model.
Rooftop Solar Expansion Amidst Government Initiatives
Tesla’s current focus on rooftop solar manufacturing in India coincides with the government’s ambitious plans, as Prime Minister Narendra Modi recently launched the PM Surya Ghar scheme.
With an investment of INR 75,000 crore, the initiative aims to illuminate one crore households by providing up to 300 units of free electricity monthly through rooftop solar panels. Subsidies will be credited directly to consumers’ bank accounts, fostering the solar industry’s growth.
Despite Tesla’s interest, its solar operations in the US experienced a decline, with deployments in the December quarter dropping by 59 percent.
In contrast, India’s rooftop solar sector has shown promising growth, boasting a compound annual growth rate of 4.7 percent over the last five years. Notable domestic players like Tata Power Solar and Adani Solar have already established themselves in this sector.
Government Engagement and Tesla’s Multifaceted Approach
Tesla’s collaboration with the Indian government extends beyond solar projects. The corporation is actively discussing import duty rates for its electric vehicles and has proposed significant investments in the country’s automotive sector.
According to well-placed sources, high-level conversations between Elon Musk and Indian officials highlight the seriousness of Tesla’s aspirations in India, with the business willing to invest up to $2 billion in creating a factory, subject to favorable import tariff rates.
As Tesla explores opportunities in India’s solar energy landscape, its potential partnership with local players marks a significant step towards contributing to the country’s renewable energy goals. With the government’s support and Tesla’s innovative technology, the collaboration promises a brighter and more sustainable future.
Stay ahead of the curve and follow IndiaTechDesk on Facebook, Twitter and Linkedin for in-depth news of market trends, funding updates, and regulatory changes affecting startups in India.
Read More:
- Triton EV to launch hydrogen vehicles in India as rival Tesla weighs its options
- Exponent Energy, an Electric Vehicle Charging Station Service Provider Secured $13 million in its Series A
- Battery-swapping technology provider Battery Smart raises $25 million in Series A Funding led by Tiger Global
- Sugar.fit Secures $11 Million Series A Funding to Revolutionize Diabetes Management
- Kiwi Raises $13 Million in Series A Funding to Expand Innovative Credit Card Offerings on UPI Platform
