About SAHAJ SOLAR Limited

Sahaj Solar Limited is a Solar Solutions providing company having experience of almost one decade in majority of the verticals of renewable power generation. They are a manufacturing as well as a service provider company which gives them an edge in the solar power market. They are engaged in three businesses of PV Module manufacturing, providing solar pumping systems and providing EPC Services.

First being PV Module manufacturing, for which their company has a PV module manufacturing plant having a capacity of 100 MWs at their plant in Bavla, Ahmedabad, Gujarat, India on a land admeasuring approximately 2,883.77 square metres; having a construction of 2445.5 square metres comprising of factory as well as office premises enabling the company to deliver quality and affordable solar panels to its customers. Their Company’s automated production facility offers mono & poly crystalline PV Modules for various solar projects across India and abroad. The plant is an integrated manufacturing facility for PV modules. Apart from polycrystalline module, the facility manufactures Mono PERC (Passivated Emitter and Rear Contact) module, with not less than 21% and higher efficiency also. To enhance efficiency and brand positioning, they use Crystalline Photovoltaic Technology for manufacturing Solar PV Modules. Their plant has the capacity to manufacture customized size PV modules. 

Secondly, their company is engaged in providing solar water pumping systems. A solar water pump is an application of Solar PV System which converts solar energy into electricity to run motor and pump. The motor energized by solar power delivers water out of bore well, river, lake or pond. The key components of solar water pumping system is solar panel which is manufactured by their company. The second important component of the solar water pumping system is the module mounting structure (MMS) is manufactured by Veracity Energy and Infrastructure Private Limited (one of our subsidiary company). The controller for solar water pumping system is designed by Veracity Powertronics Private Limited (one of their subsidiary company). These components comprise of more than 70% of the total system cost. The balance components of the solar water pumping system are being outsourced. As a part of the Central Government’s initiative to increase farmers’ income, the Ministry of New and Renewable Energy (MNRE) has launched the Pradhan Mantri Kisan Urja Suraksha evem Utthan Mahabhiyan (PM KUSUM) Scheme for farmers for installation of solar pumps and grid connected solar and other renewable power plants in the country. Through this scheme, more than 20 lakh farmers (MNRE PM KUSUM scheme) will benefit with standalone solar water pumping system which will enable them to produce crops in multiple seasons and thereby increase their incomes. The standalone solar water pump has provided the farmers with the opportunity to work independent of grid power.

Thirdly, their Company being an integrated solar energy solutions provider, also offers engineering, procurement, and construction (“EPC”) services to their customers. Their EPC services include design, supply, installation, testing, commissioning and maintaining of all sizes of projects ranging from simple domestic solar installation to setting up a large scale Solar Power Plant.

INDIAN RENEWABLE ENERGY MARKET

India's energy demand is expected to increase more than that of any other country in the coming decades due to its sheer size and enormous potential for growth and development. Therefore, most of this new energy demand must be met by low-carbon, renewable sources. India's announcement India that it intends to achieve net zero carbon emissions by 2070 and to meet 50% of its electricity needs from renewable sources by 2030 marks a historic point in the global effort to combat climate change.

India was ranked fourth in wind power capacity and solar power capacity, and fourth in renewable energy installed capacity, as of 2023. Installed renewable power generation capacity has increased at a fast pace over the past few years, posting a CAGR of 15.4% between FY16 and FY23. India has 125.15 GW of renewable energy capacity in FY23. India is the market with the fastest growth in renewable electricity, and by 2026, new capacity additions are expected to double.

With the increased support of the Government and improved economics, the sector has become attractive from an investor’s perspective. As India looks to meet its energy demand on its own, which is expected to reach 15,820 TWh by 2040, renewable energy is set to play an important role.

INDIAN SOLAR ENERGY MARKET

India's solar market is estimated to be at 79.07 GW by the end of this year and is projected to reach 195.11 GW after five years, registering a CAGR of 19.8% during the forecast period.

• Over the medium term, the Indian solar energy market is growing owing to the cost of solar power technology declining, solar systems becoming more flexible, and solar power is a greener way to make electricity. The market is also propelled by supportive government policies, particularly the Ministry of New and Renewable Energy (MNRE) plans to encourage renewable-based power generation.

• On the other hand, the solar energy market is restrained by issues like transmission and distribution losses and unpredictability in the continuity of power supply.

• Nevertheless, India has a lot of solar irradiance and gets solar energy all year. This means there are many places in the sunniest parts of the country, like Rajasthan, Gujarat, and Andhra Pradesh, where solar energy can be used. This, along with foreign investment and a lot of research and development projects to improve the technology, gives the Indian solar energy market a lot of chances to grow.

• The India Solar Energy Market was estimated at USD 38 billion in 2022 and is anticipated to reach around USD 238 billion by 2030, growing at a CAGR of roughly 40% between 2023 and 2032. Our research report offers a 360-degree view of the India Solar Energy market’s drivers and restraints, coupled with the impact they have on demand during the projection period. Also, the report examines opportunities and competitive analysis for the India Solar Energy market.

• Due to its size and tremendous potential for growth and development, India’s energy demand is anticipated to rise more than any other nation in the next decades. The majority of this additional energy demand must therefore be satisfied by renewable, low-carbon sources. A significant turning point in the global fight to tackle climate change has been reached with India’s announcement that it plans to attain net zero carbon emissions by 2070 as well as to meet 50% of its electricity needs from renewable sources by 2030.

• India’s market for renewable energy ranks fourth globally in terms of attractiveness. As of 2020, India’s installed capacity for renewable energy was fourth overall, sixth for solar power and fourth for wind power. With a CAGR of 15.92% between FY16 and FY22, installed renewable power generation capacity has accelerated during the past several years. With new capacity predicted to double by 2026, India is the market with the fastest growth in renewable electricity.

• By 2030, the nation wants to have installed 450 Gigawatts (GW) of renewable energy, of which 280 GW (more than 60%) will be solar. Between March 2014 and March 2021, the installed capacity of solar energy expanded by more than 18 times, from 2.63 GW to 49.3 GW. India has increased its solar power capacity by 12 GW through November 2022.

INDIA SOLAR WATER PUMP SYSTEMS INDUSTRY

The Indian solar water pumping systems market has experienced remarkable growth, spurred by the nation's commitment to sustainable energy solutions and the need for reliable water supply in agriculture. With approximately 70% of India's population engaged in agriculture, the demand for efficient water pumping systems is substantial. The market size for solar water pumping systems in India was valued at around USD 120 million in 2022 and is expected to witness a compound annual growth rate (CAGR) of approximately 20% from 2022 to 2026.

Government initiatives, including the Kisan Urja Suraksha evam Utthaan Mahabhiyan (KUSUM) scheme, have been instrumental in incentivizing the adoption of solar-powered water pumps. KUSUM aims to install 30.8 GW of solar capacity for agriculture and reduce the carbon footprint associated with conventional pumping systems. As a result, more than 200,000 solar water pumps were deployed across the country by the end of 2022.

INDIA SOLAR PHOTOVOLTAIC (PV) MARKET ANALYSIS

The Indian solar photovoltaic (PV) market is expected to grow at a CAGR of 9.8% between 2024 and 2032, reaching 43.23 GW by 2032. The COVID-19 outbreak has shown a negative impact on India's Solar Photovoltaic Market. The national-wide lockdown has halted construction works of solar PV projects totalling about 5 GW, which is, in turn would delay to meet the country's target of 100 gigawatts (GW) installed solar energy capacity by 2022. Factors such as favourable government schemes for small-scale solar power generation, and upcoming large-scale solar power projects, are expected to drive the market. However, the solar energy market is also hampered by issues like T&D losses (Transmission & Distribution losses), and unpredictability in the continuity of power supply.

The solar PV rooftop segment is expected to dominate the market during the forecast period. Owing to increasing solar PV installations in the commercial and industrial segment during recent years. India has an abundance of solar irradiance and receives solar energy throughout the year. This has created umpteen opportunities to exploit solar energy from the sunniest sites in the country, especially Rajasthan, Gujarat, and Andhra Pradesh. The factor mentioned above, clubbed with foreign investment and extensive R&D projects to improve the technology, and provides ample opportunities for the growth of the solar energy market in India. The market is also propelled by supportive government policies, particularly the plans formulated by the Ministry of New & Renewable Energy (MNRE) to encourage renewables-based power generation.

The India Solar Photovoltaic (PV) Market is fragmented. Some of the major players includes Tata Power Solar, Adani Group, Azure Power Global Limited, EMMVEE SOLAR, Mahindra Susten Pvt. Ltd.

INDIA POWER EPC MARKET IN INDIA : The India power EPC (Engineering, Procurement, and Construction) market size was valued at USD 13.30 Billion in 2022 and is likely to reach USD 83.84 Billion by 2031, expanding at a CAGR of 22.7% during 2023–2031. The growth of the market is attributed to the increasing industrial operations across various sectors, sustained economic growth and government initiatives such as “power for all”.

GROWTH IN INDIAN SOLAR MARKET

In 2022, India achieved a record addition of around 14 GW of solar capacity, bringing its total to 63.5 GW and making it the world's 5th largest in installed solar capacity. India aims to reach 300 GW of solar out of 500 GW of total renewable energy capacity by 2030, necessitating annual additions of 20-30 GW from 2023. The year saw significant growth in non-utility scale solar, with 1.6 GW added in rooftop solar and 2.5 GW in commercial and industrial sectors through open access. Utility-scale solar reached 53.8 GW, nearly meeting the 60 GW target set for 2022.

The government introduced several initiatives, including the approval of Phase II of the Green Energy Corridor, enhancing grid integration for 20 GW of renewables in seven states. The Direct Benefit Transfer scheme was launched to expedite residential rooftop installations, and Green Open Access Rules reduced the limit for open access transactions, boosting solar open access installations to 2.5 GW.

India's rooftop solar capacity reached 8.8 GW, led by Gujarat, Maharashtra, and Rajasthan. The government also set a target for 4,886 MW of small solar power plants under the KUSUM scheme, with 48.2 MW installed by 2022. A bidding trajectory for 50 GW of annual renewable energy projects was announced for 2024-28, with plans to build 100 GW of solar manufacturing capacity by 2027 through PLI schemes.

SAHAJ SOLAR LIMITED STRENGTHS
1. Experience in both Solar panel manufacturing and EPC services
2. Empanelled partner of various Government schemes and tenders
3. Located in one of the highest consumption zone
4. Well established position in medium sized solar panel manufacturers
5. Follows the production guidelines and the accepted International Industry Standards and Practices with all major national & international certifications.
6. Experienced key management personnel, project management and operations team with an excellent track record

SAHAJ SOLAR LIMITED STRATEGIES
1. Continued focus on developing new and innovative products and services
2. Focus on increasing market share into untapped markets and underdeveloped countries
3. Invest in technology development and global partnerships for vertical integration
4. Grow their customer base and maintain relationships with other key stakeholders
5. Enhance their commitment to society and sustainable business development

SAHAJ SOLAR LIMITED RISK FACTORS & CONCERNS
1. Their Company is dependent on few numbers of customers for sales.
2. The company is engaged in assembling of solar water pumping system and customers receives subsidy from State/Central Government.
3. Their business activities are exposed to fluctuations in the prices of raw materials.
4. The Company has received a notice from MSME Commissionerate for the delayed payments under MSMED Act, 2006.
5. They highly depend on their major raw materials and a few key suppliers who help them procure the same.
6. The Company had advanced a loan to a body corporate where the directors of their company were interested, in the past, which may attract the penalties or regulatory actions.