Indian solar firm Premier Energies pumps brakes on US gigafactory project

Uncertainty swirling around US clean energy policy has prompted Indian solar module producer Premier Energies to put the brakes on its planned 1-gigawatt (GW) solar cell manufacturing facility in the United States. The company’s decision, announced Monday, comes in the wake of President Trump’s recent moves to roll back several Biden-era green initiatives.

Premier Energies had teamed up with North American solar module maker Heliene in July 2024 to establish the plant, aiming to leverage incentives and tax breaks for domestic clean energy manufacturing under the Inflation Reduction Act (IRA). The project represented a significant investment and a bid to tap into the burgeoning US market for solar technology.

However, the landscape shifted dramatically in January when the Trump administration initiated a pause on spending tied to climate and infrastructure legislation, effectively freezing IRA tax credits for clean industries. Simultaneously, the administration suspended new offshore wind power leasing and signaled its intent to maximize US oil and gas production, including withdrawing from the Paris climate agreement.

This policy U-turn has left Premier Energies in a holding pattern. “We still have this plan,” Managing Director Chiranjeev Saluja explained during an investor call. “We are waiting for the regime in the U.S. to settle down and be clear on what they want to do. As of now, we have only heard and read that the IRA has been paused.” Saluja emphasized the company’s cautious approach, stating, “As a company, we have taken a conscious decision not to move ahead until we get full clarity on this topic.”

The uncertainty surrounding US clean energy policy has taken a toll on Premier Energies’ stock. Shares have fallen by roughly 23% since reaching a high point in December, following the company’s listing in September.

Meanwhile, rival Indian solar module manufacturer Waaree Energies indicated last week that it is prepared to navigate potential import tariffs under the Trump administration, citing its existing operations in Texas as a strategic advantage.

Also read: Solar power overtakes coal in EU electricity generation in 2024.