About Solarium Green Energy Limited

Business Overview

Solarium Green Energy Company specializes in Turnkey Solar Solutions, offering services in design, engineering, procurement, construction, testing, commissioning, and comprehensive Operation & Maintenance (O&M) for solar power plants. The company serves a diverse range of projects, including Residential Rooftop, Commercial & Industrial (C&I) Rooftop, Ground-Mounted, and Government Projects. Additionally, it is involved in the sale of solar products, including Solar PV Modules, Solar PV Inverters, Availability-Based Tariff (ABT) Meters, and other solar components.

Manufacturing operations commenced in 2018 at Bhamsara - Bavla, Gujarat, focusing on Polycrystalline Solar Panels under its own brand. However, production was halted in February 2024 due to exclusion from the Approved List of Models and Manufacturers (ALMM) in September 2023. Business operations were diversified in 2021 as a Solar/Hybrid Solution provider on a turnkey basis. The company also acquired a 99.99% stake in Solarium Ventures LLP for ₹99,990 on August 10, 2024, expanding its footprint in renewable energy.

EPC contracts cover end-to-end project execution, including site assessment, plant configuration selection, financial and technical evaluation, risk assessment, grid connectivity, supply chain management, logistics, construction, manpower deployment, and financial structuring. O&M services include panel testing and cleaning, component repair and replacement, and solar system inspections.

In the last three financial years and up to September 30, 2024, the company executed 11,195 Residential Rooftop Projects, 172 C&I Rooftop and Ground-Mounted Projects, and 17 Government Projects. As of December 31, 2024, the ongoing order book includes 39 projects worth ₹18,507.16 lakhs, with ₹4,482.85 lakhs already recognized as revenue. Bids submitted for government projects amount to ₹88,536.59 lakhs, with tenders worth ₹82,500.79 lakhs still awaiting results. The company has also been recognized as the L1 bidder for projects worth ₹6,035.80 lakhs, pending administrative approvals.

Between April 1, 2024, and December 31, 2024, 4,910 residential rooftop projects were received, with 2,689 completed by September 30, 2024. Certified by M/s. Abhishek Kumar & Associates, the company’s completed and ongoing projects span across Gujarat, Jammu, Silchar, West Bengal, Tripura, Andaman Islands, and Leh. Dedicated to delivering enhanced value and continuous service improvements, the company remains committed to customer satisfaction and excellence in renewable energy solutions. As on September 30, 2024, the Company have maintained a full-fledged team of 253 full time employees to undertake its operations. The Banker to the Company is HDFC Bank Limited

Industry Analysis

RENEWABLE ENERGY SECTOR
In 2023, the world grid-connected 447 GW of new solar capacity, which, once again, dominated the newly added global power generation capacity. Solar PV accounted for 78% out of 576 GW of new renewable capacity added last year. Solar’s share of new renewable capacity increased considerably, up 12 percentage points from the 66% contributed in 2022 and 22 percentage points more than the 56% in 2021. This new record confirms solar’s role as an established and still rising leader of the global energy transition, installing over three times more capacity than all other renewable technologies combined.

The 447 GW of new solar capacity broke any previous record and far exceeded any solar analyst’s expectations, marking an extraordinary 87% growth rate. This compares to 2022’s addition of 239 GW and 46% year-on-year growth.

The surge in installed solar capacity can be attributed to several key factors. Firstly, a significant increase in global PV manufacturing capacities greatly improved the availability of solar modules following the supply chain issues experienced during the pandemic. This capacity expansion resulted in overcapacities and severe price drops for system components over the course of 2023, with modules’ values falling by around 50%. In addition, the effects of the 2022 global energy crisis continued to stimulate demand across various regions. Governments, individuals, and businesses turned to solar power as a reliable and costeffective solution to high energy prices, while accelerated electrification of the heat and transport sectors also gained much more attention. Many orders from 2021 and 2022 were finally installed in 2023, thanks to the increased availability of products and installers at more affordable prices.

While the scale of 2023’s growth was unprecedented, it needs to be highlighted that most of this global market expansion as driven by and in China. The world’s largest solar product supplier and market for years, China broke any previous record by adding an incredible 253 GW of new solar PV capacity in 2023, marking a 167% year-on year growth rate. Meanwhile, the rest of the world installed ‘only’ 194 GW of new solar PV, reflecting a 35% increase from the 144 GW deployed in 2022 (Fig. 3). In other words, without China’s strong solar investments in deployment, the solar sector’s growth would have been much more modest.

Eight of the top 10 largest solar markets experienced growth in 2023, with only India and Japan experiencing a downturn in their market. The United States got back on track after a turbulent solar business year in 2022 and recorded a 48% growth rate in 2023, with 32.4 GW of solar PV grid-connected. Germany installed 15 GW in 2023, marking a new record for any European country. The previous record was held by Italy with 9.3 GW installed long back in 2011, during the first boom phase of the European solar story. Comprised together, the top 10 markets represented 80% of the global solar PV market in 2023.

We anticipate substantial demand growth for solar PV power in the coming years, driven by further cost improvements, product availability, and the numerous benefits the technology provides. Climate emergency will continue to capture governments’ attention, while energy security will remain a compelling argument to invest in solar power in a quickly fragmenting world order.

For 2024, our Medium Scenario forecasts a global growth rate of 22% to a market size of 544 GW, approximately 100 GW more than in 2023. As we’ve seen in recent years, current global market forecasting will depend largely on getting China’s solar deployment right due to its outstanding position in the global PV landscape. With analysts severely under-estimating China’s market expansion in the past, and several reasons speaking for further growth, we estimate deployments of 299 GW, a year on-year uptick of 18%. Modelling variations depending on policy and economic developments, our more optimistic High Scenario projects 45% annual growth to 647 GW, while our Low Scenario anticipates only 3% growth to 461 GW in 2024. In the mid-run, annual global market installations reach 614 GW in 2025 under the Medium Scenario, a 13% increase from 544 GW in 2024, followed by a 12% increase to 687 GW in 2026, 12% to 773 GW in 2027, and 13% to 876 GW in 2028.

India’s Power Scenario
India is now amongst the fastest developing countries in the world in terms of GDP as well as the electricity consumption. The challenge is to meet the energy needs of high economic growth & electricity consumption of about 1.3 billion people. The development of an efficient, coordinated, economical and robust electricity system is essential for smooth flow of electricity from generating station to load centre’s (as per Electricity Act, 2003) and for optimum utilization of resources in the country, in order to provide reliable, affordable, un-interruptible (24x7) and Quality Power for All.

In May 2023, Central Electricity Authority had notified the National Electricity Plan (NEP) for the period of 2022-32. NEP suggests share of non-fossil based capacity to increase to 57.4% by the end of 2026-27 and further to 68.4% by the end of 2031-32 from around 42.5% at present. According to the NEP document, the projected All India peak electricity demand is 277.2 GW for the year 2026-27 and 366.4 GW for the year 2031-32 as per 20th Electric Power Survey (EPS) Demand projections. The Peak Demand are inclusive of the impact due to factors like energy efficiency, penetration of electric vehicles, and production of green hydrogen.

Based on generation planning studies carried out under the purview of preparation of National Electricity Plan for the period of 2022-27, the likely Installed Capacity for the year 2026-27 is 609.5 GW comprising of 273.0 GW of Conventional capacity (Coal-235.1 GW, Gas–24.9 GW, Nuclear-13.0 GW) and 336.5 GW of Renewable based Capacity (Large Hydro52.4 GW, Solar-185.6 GW Wind-72.9 GW, Small Hydro-5.2 GW, Biomass-13.0 GW, Pump Storage Plants (PSP projects) -7.4 GW) along with BESS capacity (Battery Energy Storage System) of 8.6 GW/34.7 GWh.

The likely Installed Capacity for the year 2031-32 is estimated to be 900.4 GW comprising of 304.2 GW of Conventional capacity (Coal-259.6 GW, Gas–24.8 GW, Nuclear-19.7 GW) and 596.2 GW of Renewable based Capacity (Large Hydro62.2 GW, Solar-364.6 GW, Wind-121.9 GW, Small Hydro-5.5 GW, Biomass-15.5 GW, PSP-26.7 GW; excluding 5.8 GW of likely Hydro based Imports) along with BESS capacity of 47.2 GW/236.2 GWh.

The projection of total capacity addition is in line with the target of the country to achieve a non-fossil based installed capacity of around 500 GW by the year 2029-30.

Business Strengths

1. Scaled and Integrated Operations in Renewable Energy
Solarium Green Energy provides turnkey solar solutions, covering design, engineering, procurement, construction, commissioning, and comprehensive Operation & Maintenance (O&M) of solar power plants. The company executes a wide range of projects, including residential rooftop, commercial & industrial (C&I) rooftop, ground-mounted, and government projects. With an integrated approach, the company oversees projects from inception to completion, leveraging expertise to secure competitive bids in India's growing renewable energy sector.

2. Diversified Portfolio with Strong Domestic Presence
Operating across 10 Indian states, including Gujarat, Delhi, Rajasthan, Haryana, Punjab, Odisha, Maharashtra, Uttar Pradesh, Madhya Pradesh, and Jammu & Kashmir, the company has a strong presence in the renewable energy space. The portfolio includes wind-solar hybrid systems, solar rooftop power generation, ground-mounted solar plants, solar hybrid systems, solar water heaters, solar trees, and solar carports. While Gujarat has been a key market, recent expansions have strengthened its presence in other states.

3. Strong Customer and Supplier Relationships
Long-term client relationships have driven repeat business and customer retention, providing a competitive advantage in acquiring new clients. Strong supplier partnerships ensure timely procurement of quality raw materials, enabling efficient inventory management and consistent project execution.

4. Experienced Leadership with Industry Expertise
Guided by promoters Ankit Garg and Pankaj Vallabhbhai Gothi, who collectively bring over 20 years of industry experience, Solarium Green Energy has successfully executed multiple renewable energy projects. The leadership's strategic vision, combined with a skilled professional team, has been instrumental in the company's growth and operational success.

Business Strategies

1. Strengthening Domestic Presence
Solarium Green Energy has evolved from manufacturing polycrystalline solar panels in 2018 to becoming a fully integrated turnkey solar solutions provider by 2021. The project portfolio spans 10 Indian states, including Gujarat, Delhi, Rajasthan, Haryana, Punjab, Odisha, Maharashtra, Uttar Pradesh, Madhya Pradesh, and Jammu & Kashmir. While Gujarat has been a key market, recent expansions have solidified its presence in multiple states. Continuous portfolio diversification remains a priority to sustain a competitive edge.

2. Investing in an Integrated Business Model
Expanding the project portfolio is central to growth, supported by investments in business units and streamlined processes across all project development stages. Standardized procedures for bid selection, land evaluation, regulatory approvals, component procurement, and project construction are being implemented to reduce costs and improve efficiency. Strengthening supplier relationships ensures a stable supply of high-quality, cost-effective components while minimizing project timelines. In-house EPC and O&M services are optimized to enhance profitability and operational efficiency.

3. Prioritizing Customer Satisfaction
Customer feedback plays a crucial role in improving products and services. A dedicated marketing team gathers insights from existing clients, ensuring quality products and proactive follow-ups. Effective post-sales engagement fosters long-term relationships and maintains high customer satisfaction levels.

4. Sustaining Competitive Advantage
Scaling up execution capabilities remains a priority to deliver high-quality construction. Enhancing operations through advanced equipment, skilled labor, and premium materials ensures a competitive edge. Continuous improvements in project execution strengthen market positioning and drive long-term success.

Business Risk Factors and Concerns

1. Revenue Concentration in Gujarat
A significant portion of revenue is derived from Gujarat, contributing 75.71% (H1 FY25), 78.63% (FY24), 75.07% (FY23), and 72.88% (FY22) of total operational revenue. Any adverse developments in this region could impact overall business performance.

2. Regulatory Impact on Solar Module Manufacturing
The manufacturing of polycrystalline solar modules, operational since 2018, was halted in February 2024 due to changes in the Approved List of Modules and Manufacturers (ALMM) by the Ministry of New & Renewable Energy (MNRE). Future regulatory modifications in solar policies may affect operations, cash flows, and financial stability.

3. Dependence on Key Clients
A limited number of clients contribute a substantial share of revenue, with the top 10 customers accounting for 40.76% (H1 FY25), 41.01% (FY24), 25.98% (FY23), and 39.71% (FY22). Loss of any major clients could negatively impact financial performance and cash flow.

4. Cost Estimation Risks in Lumpsum Turnkey Contracts
Most EPC contracts operate under a fixed-price (Lumpsum turnkey) model, where costs are estimated at the contract stage. Inaccuracies in cost projections or changes in project scope could lead to higher-than-expected expenses, increased working capital requirements, and potential losses, as contract repricing is generally not allowed.

5. Seasonal Revenue Concentration in Government Projects
Turnkey Government Projects experience high revenue concentration in the second half of the financial year, leading to uneven revenue distribution. This unpredictability in project scheduling may affect cash flows, financial stability, and operational efficiency.

Solarium Green Energy faces significant regional revenue dependence, with a major share generated from Gujarat. Regulatory changes have impacted solar module manufacturing, posing operational risks. A high reliance on a few clients increases financial vulnerability, while fixed-price turnkey contracts may lead to cost overruns. Additionally, seasonal revenue concentration in Government Projects creates cash flow uncertainties. Addressing these risks is crucial for long-term stability and growth.