India is one of the largest and fastest growing renewable energy markets in the world. This sector is expected to grow from $23.9 billion in 2024 to $52.1 billion (about Rs 4.5 lakh crore) by 2033. That means an average annual growth of 8.1%. The biggest reason for this rise is the increasing demand for solar modules. According to Premier Energy, the demand for solar modules in India may increase from 50 GW in 2025 to 126 GW by 2035.
The government aims to achieve 500 GW of non-fossil power capacity by 2030, up from 250 GW in 2025. At present, the share of non-fossil energy in India's electricity mix has reached 50%. Schemes like Green Hydrogen Mission, PM Surya Ghar and PM Kusum are giving further impetus to this sector. Under the ALMM policy to be implemented between 2026 and 2028, 100% domestic manufacturing will be required in rooftop, open access and utility projects. Two companies in particular can benefit from this change.
Vaari Energies is one of the largest solar manufacturing companies in India. Now it is moving beyond just being a solar module manufacturing company (Waaree 1.0) to becoming a complete green energy platform (Waaree 2.0). Order book of Rs 60,000 crore The company performed brilliantly in Q3. Revenue increased by 119% YoY to Rs 7,565 crore, EBITDA increased by 167% to Rs 1,928 crore and margin around 25.5%. Vaari currently has an order book of Rs 60,000 crore, which clearly shows earnings for the next two years. About 65% of the orders are from abroad and 35% are from India.
Vari is now entering the entire value chain of solar. From polysilicon to cells, wafers and modules. The company plans to commission 6 GW module, 10 GW cell and 10 GW wafer/ingedge capacity by FY27.
There is a plan to install 20 GWh battery storage units by FY28, which will entail an investment of Rs 10,000 crore. Apart from this, it is also targeted to start a 1 GW electrolyzer factory by FY27. Vari is adopting smart strategies to deal with tariffs in the US and is also working on building a polysilicon supply chain independent of China.
Premier Energies is India's leading solar cell and module manufacturing company. It is also entering into related products like transformers, inverters and battery storage, although its growth is slightly slower than Vari. Order book of Rs 13,724 crore Q3 FY26 Revenue up 13% to Rs 1,937 crore EBITDA up to Rs 593 crore, Margin 30.6% Profit up 53% to Rs 392 crore The company has an order book of Rs 13,724 crore, which is entirely from the domestic market.
Premier Energies is rapidly increasing its capacity under Mission 2028. New factories are coming up in Andhra Pradesh and Telangana. The goal is to create a vertically integrated capacity of more than 10 GW by 2028. The company is also focusing on reducing costs. In the last five years, it has reduced the consumption of silver in solar cells by 68%.
The question for investors is simply this. They want large-scale growth or insist on better utilization of capital. There is still a long game ahead for both of them in India's solar revolution.
