Tata Power (NSE: TATAPOWER) expands solar dominance with 4 GW milestone at AI-powered Tamil Nadu facility

Tata Power Company Limited (NSE: TATAPOWER) confirmed that its solar manufacturing subsidiary, TP Solar Limited, has crossed 4,049 megawatts of cumulative solar module production at its flagship manufacturing facility in Tamil Nadu. The electric utility developer disclosed that the same facility has also produced 1,441 megawatts of solar cells as of May 31, 2025. This milestone strengthens Tata Power’s position as a critical contributor to India‘s clean energy infrastructure and domestic supply chain, particularly under the central government’s Domestic Content Requirement (DCR) policies.

TP Solar, a wholly owned subsidiary of Tata Power Renewable Energy Limited, represents the manufacturing engine of Tata Power’s vertically integrated solar strategy. The Tamil Nadu plant, rated at 4.3 gigawatts in capacity, is expected to reach full operational scale during the financial year 2025–26. The firm has already set ambitious internal targets to manufacture 3.7 GW of solar cells and 3.725 GW of solar modules in the same period, reflecting an aggressive ramp-up strategy underlined by both policy support and rising order book visibility.

How does this align with India’s clean energy manufacturing goals?

The commissioning and scale-up of the Tamil Nadu facility is strategically aligned with India’s broader objective to achieve 500 GW of non-fossil fuel power capacity by 2030. As geopolitical events and global trade disruptions continue to impact the reliability of imported clean energy components, Indian policymakers have prioritized localized manufacturing of solar cells and modules through incentive frameworks under the Production Linked Incentive (PLI) scheme and the DCR mandate.

TP Solar’s compliance with DCR norms and its technological focus on advanced Mono PERC (Passivated Emitter and Rear Cell) and TopCon (Tunnel Oxide Passivated Contact) module formats position it well to compete for government-backed solar projects. These next-generation modules are manufactured using fully automated, AI-driven lines, which not only improve throughput but also enhance quality assurance and production stability.

The facility’s output is already being deployed across Tata Power’s utility-scale solar farms, hybrid energy parks, and commercial rooftop projects. Additionally, TP Solar serves third-party installations nationwide, offering India’s clean energy sector a stable and reliable source of DCR-compliant modules amid volatile global supply chains.

What sets Tata Power’s Tamil Nadu solar facility apart?

Beyond manufacturing capacity and technology, the Tamil Nadu solar module and cell plant is designed with sustainability and social inclusion at its core. Over 80 percent of the plant’s shopfloor workforce comprises women—a rare statistic in India’s heavy manufacturing sector. Tata Power has emphasized that this workforce model reflects a deeper commitment to gender diversity, equitable job creation, and the long-term development of advanced manufacturing talent.

The facility also adheres to green building norms, using energy-efficient systems, resource-conscious design elements, and low-emission construction materials. This environmental stewardship is consistent with Tata Power’s larger pledge to achieve carbon neutrality before 2045 and bolster its ESG profile in both domestic and international markets.

From a manufacturing architecture standpoint, the facility is one of the few in India capable of vertical integration across the solar value chain—from wafer to module—with AI-powered diagnostics, predictive maintenance systems, and smart inventory handling, creating a blueprint for future clean energy factories.

How are investors and institutions reacting to Tata Power’s growth?

On June 9, 2025, Tata Power’s stock closed at ₹406.00 on the National Stock Exchange of India, gaining 1.61 percent from the previous day’s close of ₹399.55. The trading session recorded a volume of approximately 59.81 lakh shares with a traded value of ₹241.83 crore. The stock’s volume-weighted average price (VWAP) was ₹404.31. Tata Power’s adjusted price-to-earnings (P/E) ratio stands at 30.99, compared to the symbol P/E of 32.06 for its NIFTY NEXT 50 peers.

Tata Power currently holds a total market capitalization of ₹1.29 lakh crore, with a free float market cap of ₹67,986.59 crore. According to institutional analysts, the company’s strong DCR-aligned order book, combined with robust execution in solar manufacturing, is one of the key factors sustaining bullish sentiment around the stock. Asset managers and ESG-focused investors are also watching closely, given the firm’s integrated clean energy platform and the increasing weight of sustainability metrics in fund allocation strategies.

What is the role of TP Solar in Tata Power’s clean energy strategy?

TP Solar is central to Tata Power’s ambition of becoming a fully integrated clean energy powerhouse. As of FY25, Tata Power commands a diversified energy portfolio of 15.7 GW, with 6.9 GW (44 percent) stemming from renewable sources such as solar, wind, and hybrid installations. TP Solar allows the parent utility to hedge against input cost volatility, secure preferential access to DCR-specific contracts, and deliver turnkey energy solutions that span manufacturing, deployment, and digital monitoring.

The electric utility developer’s solar arm also operates a 682 MW module and a 530 MW solar cell manufacturing plant in Bengaluru. These older facilities continue to operate at full capacity, primarily serving DCR-linked project requirements across central and state government tenders.

According to market experts tracking clean energy procurement cycles, Tata Power’s dual-location manufacturing footprint is seen as a competitive differentiator—particularly as government-backed tenders increasingly require speed, domestic sourcing, and scale.

What’s next for TP Solar and Tata Power in FY26 and beyond?

Looking ahead, analysts expect Tata Power to invest in further capacity expansion, backward integration of polysilicon and wafer supply, and potential partnerships with global technology providers for solar innovations such as heterojunction technology (HJT) and tandem perovskite modules. The Trump administration’s push for bilateral clean energy cooperation with India may also open new export opportunities, provided DCR and import-export policies align.

TP Solar’s 4.3 GW Tamil Nadu plant could serve as the anchor facility for future contract manufacturing for both domestic clients and international clean energy players exploring Indian partnerships under the “Make in India” and “Atmanirbhar Bharat” programs.

While TP Solar has not disclosed its exact capital expenditure roadmap for FY26–27, the scale of its current operational and production targets suggests continued focus on high-volume, high-efficiency manufacturing. The integration of predictive analytics, robotic quality control, and supply chain digitization is likely to further enhance operating margins and delivery timelines.

Why does TP Solar’s milestone matter for India’s energy future?

TP Solar’s 4 GW milestone is more than just a numeric benchmark—it represents a pivotal shift in how India sources, manufactures, and deploys solar energy solutions at scale. As the country targets 500 GW of non-fossil fuel power capacity by 2030, domestic solar manufacturing will be a key enabler of cost-competitive, sovereign-backed energy transformation.

Tata Power’s contribution, through TP Solar, blends commercial viability with policy compliance, enabling the Indian energy ecosystem to evolve beyond dependency on imported modules. In a world where energy geopolitics increasingly shapes national security and economic growth, this facility could become a cornerstone of India’s clean energy resilience.