Key takeaways:
RCT Solutions emphasized that the long-term viability of module factories depends on keeping manufacturing costs below the average selling price
It says engineering readiness, more than vendor selection, determines project timelines, costs, and ramp-up success
Strengthening in-house capability, planning realistically, and maintaining operational discipline were identified as essential for sustainable module manufacturing in India
At the TaiyangNews conference, Sukumar Madugula, Sales Director at RCT Solutions, presented an engineering-focused perspective on establishing solar module manufacturing plants, with particular emphasis on India.
He described the rapid expansion of India’s PV manufacturing sector, which grew from around 30-40 GW pre-COVID to more than 100 GW of capacity today, with annual domestic demand in the range of 40-50 GW. Policies such as the Domestic Content Requirement (DCR) have accelerated investments in module production. Madugula raised frequent questions from industry participants – whether module factories remain viable, whether investors should diversify into cell manufacturing, and whether joint or consolidated cell-line development is feasible. He presented a cost curve to frame these issues, illustrating that survival in the module market depends heavily on maintaining manufacturing costs below the average selling price. Companies with cost structures comfortably below market prices are positioned for profitability, while those whose costs approach or exceed selling prices face pressure, consolidation, or potential exit from the market. He emphasized that new investors from non-PV sectors must adopt rigorous cost-reduction strategies, including bill-of-materials (BOM) optimization and operational efficiency.
Madugula challenged the widely held perception that a module plant can be built within 6 to 10 months. While vendors often present this as realistic, he argued that project success depends far more on engineering readiness than vendor selection. Many projects overlook detailed civil, architectural, and process-engineering requirements that directly affect timeline, quality, and cost. For example, over-designed buildings, especially with excessive steel tonnage, add unnecessary cost and constitute a substantial portion of total investment.
He then outlined RCT’s recommended project pathway: define the right product strategy based on market positioning, complete site readiness, prepare the team, develop realistic engineering, and pre-qualify vendors. India already has a mature vendor ecosystem for module equipment, but project success depends on owner-driven ramp-up, training, and knowledge transfer. He added that long-term operational stability depends on strengthening in-house capability rather than relying solely on vendors.
Madugula next addressed CapEx trends. A typical 1 GW module line currently requires about $5 million for equipment and $10-12 million including facility and utilities. These costs can go down by around 10% YoY. However, RCT believes CapEx may not fall significantly and instead expects the value to increase as tools incorporate upgrades required for new technologies such as back-contact modules.
Madugula concluded by noting that India’s manufacturing growth also depends on stable access to equipment, materials, and partnerships – including from Chinese vendors, who continue to play a major role in supplying scalable manufacturing solutions. He emphasized that engineering discipline, realistic cost planning, and strong internal teams are the most critical factors determining the long-term viability of module manufacturing investments.