Tech mogul Elon Musk is slated to make his inaugural visit to India this year amid aims to commence the operations of Tesla and satellite internet provider Starlink in the country.
The billionaire had initially planned to visit the country on April 21 and 22, but postponed it due to obligations related to Tesla. News on his visit, had generated a lot of excitement, especially over his possible investment plans, there are also expectations that the billionaire will seal the deal for launching a rooftop solar business in India. This comes amid India's ambitious plans to bring rooftop solar power to 10 million houses.
Moneycontrol explains how India stands to benefit from Tesla's entry into rooftop solar energy:
Is Tesla Solar really coming to India?
No. The EV maker is yet to formally announce this. According to reports, the Musk-led company has communicated its intentions to the government, seeking subsidies and other support for the initiative, and is scouting for local partners to produce its rooftop solar panels. The chosen partners will assist in both the manufacturing and installation processes, with Tesla contributing its technology and sales knowhow, according to reports.
How will India benefit from Tesla's entry into this business?
Amid an ambitious 2070 net zero target, India has announced investments worth Rs 75,000 crore for the PM Surya Ghar rooftop solar scheme, which aims to light up 10 million households with up to 300 units of free electricity every month. However, India's solar industry is heavily reliant on Chinese imports, which dominates the solar panel supply chain with over 80 percent of the global manufacturing capacity.
India's installed capacity of solar PV module manufacturing is just 50 GW , minuscule in comparison China’s cumulative PV capacity of 609.49 GW at the end of 2023. India's manufacturing capacity is and largely restricted to the last manufacturing stage, which involves assembling the individual imported solar cells into a larger panel.
The entry of Tesla Solar will boost local manufacturing, bring the latest technology, and reduce import dependence.
The company's expertise in battery storage could prove pivotal for India. Products like Tesla’s Powerwalls and Megapacks are playing a crucial role in the transition to renewables, storing clean energy for later use when utilities would typically turn to fossil fuels to power the grid.
How will manufacturers benefit from the new rooftop solar scheme?
The government has increased subsidies under the PM Surya Ghar scheme by at least 67 percent, compared to the previous rooftop solar scheme.
Per MNRE (Ministry of New and Renewable Energy) data accessed by Moneycontrol, the minimum subsidy for anyone installing a 1 kW rooftop solar system under the new scheme will be Rs 30,000, up from Rs 18,000 earlier. For those installing a 2 kW system, the new subsidy will be Rs 60,000, compared with Rs 36,000 earlier.
What is the status of Tesla's solar business in the US?
The latest data from Tesla's fourth-quarter 2023 earnings report indicates a decline in its formerly prominent solar business.
As per the report, the automaker disclosed in January that its solar installations had plummeted by 36 percent, amounting to a total of 223 megawatts (MW) in 2023, a decline from 348 MW in 2022. Despite the overall boom, Tesla said that it expects some volatility in energy deployments going ahead, and the firm’s Q4 results show as much.
Musk's acquisition of SolarCity was the subject of a $13 bn lawsuit as Musk (who was the biggest shareholder in both) was accused of getting Tesla to overpay for SolarCity. Musk, represented by star lawyer Alex Spiro, eventually won the battle in June last year.
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