Solar module companies see increased private investor interest

Indian solar module makers have caught the attention of private market investors as they scale their manufacturing presence and move further into upstream components like cells, wafers and ingots.

According to data from market research firm Tracxn,  over the past five years, private investments in module manufacturing companies have gone up nearly tenfold in value. 

In 2026 (YTD), these companies raised about $460 million in equity funding, while in 2025, the figure stood was around $322.5 million. This is a significant spike compared to the $29.3 million in 2021.

Goldi Solar’s ₹1,422 crore raise from Havells and other private investors, GREW Solar bagging ₹1,050 crore from Bay Capital Investment Ltd alongside institutional investors and ReNew Photovoltaics’ $100 million raise from the development financing institution British International Investment (BII) were some of the marquee deals over this period. 

The share of each investor could not be ascertained as Tracxn tracks value of entire round.

Speaking to businessline, industry stakeholders say that in the past, majority of capital came from strategic investors. However, increasingly, policy support alongside strong domestic demand has brought the sector onto the radar of private equity and venture capital firms. 

Ankit Jain, Vice President, Co Group Head - Corporate Ratings, ICRA Ltd, suggests that India’s module manufacturing capacity stood at more than 200 GW as of June 2026, a sharp rise from 67.3 GW as of February 2025. 

“On the demand side, there has been sizable capacity addition with schemes such as PM Kusum and PM Surya Ghar supporting module demand, while policies like ALMM, PLI and improved access to financing have enabled manufacturers to scale up capacity,” Jain said.

The investor appetite can also be attributed to a change in the perception of solar manufacturing over recent years. 

Vineet Bhatia, Partner - Renewables, Grant Thornton Bharat suggests module manufacturing has evolved from being a commodity business to being a long-term opportunity with significant growth potential. 

“Historically, low margins, high import dependence and challenges in scaling up operations kept venture capital and private equity interest in solar manufacturing low and the sector was mainly driven by strategic investors whose focus was more integration over financial returns. Nonetheless, the outlook is drastically changing now,” he said.

Moreover, he added, recent policy signals from the Ministry of New and Renewable Energy on mandatory domestic sourcing will require large-scale investments. 

“Companies are planning a phase-wise capital investment in the industry, beginning with cells in the near term, wafers and ingots in the medium term, and eventually extending to the broader ecosystem. These upstream segments are likely to attract significant long-term capital going forward.” he added.

Shilpa Kumar, Managing Director and Head of India, at British International Investment, says that the current wave of investments in solar manufacturing can be attributed to structural investments rather than a short-term earnings play. 

“We believe this is fundamentally a long-term investment story. Building globally competitive manufacturing capacity requires patient capital and an enabling ecosystem; it cannot be assessed through the lens of near-term utilisation alone. Our focus is on backing businesses with strong fundamentals, sound governance and the ability to remain competitive over the long term,” she said.