Waaree Energies: US Investigation & Investment Plans

New Delhi, Sep 28 (PTI) A US investigation into potential solar tariff evasion will not impact Waaree Energies' investment plans, including the expansion of its Texas facility and exploration of setting up a solar cell manufacturing capability in the high-growth, strategic US market, the company said Sunday.

Waaree is one of the largest vertically integrated companies in the manufacturing of solar modules, which convert sun rays into electricity. It has an operational capacity of 13.3 GW in India.

It commenced operations at its US solar module manufacturing plant in Houston, Texas, in January this year with an initial installed capacity of 1.6 GW. The Texas facility is being scaled to 3.2GW by FY27.

US customs officials last week launched an investigation into whether Waaree bypassed tariffs on Chinese-made solar cells and panels by falsely labelling them as manufactured in India.

"The investigation has no impact on our investment plans. The Texas plant expansion from 1.6 GW to 3.2 GW is already underway," the firm said.

"Our recent acquisition of US-based Meyer Burger assets further strengthens its long-term manufacturing footprint in the country. The United States is a high-growth, strategic market for Waaree, and it continues to invest in local jobs, technology, and capacity."

"Waaree Energies will continue to operate with integrity, and we reaffirm our strong commitment to the US market - both as a clean energy partner and as a growing localised manufacturer," the firm said in a written Q&A to PTI.

The firm said it is providing all required information to the US Customs and Border Protection (CBP) in its ongoing inquiry.

"As a responsible corporate citizen, we have consistently complied with all applicable local laws and regulations," the company said.

"Our internal assessment indicates no material duty exposure, and we continue to engage transparently with CBP throughout this process."

Importantly, there has been no operational disruption, and the US manufacturing operations and customer deliveries continue as planned.

"Based on our current assessment, we do not expect any material financial impact from this inquiry."

The demand in the US solar market, it said, remains extremely strong and is growing rapidly, making it one of the most lucrative clean-energy markets globally.
"Our diversified global supply chain and our domestic US production provide natural insulation from geopolitical or policy shocks, ensuring business continuity."

Asked about manufacturing solar cells as well in the US, Waaree said backward integration was a key strategic priority for the company.

"In India, we have already built significant solar cell manufacturing capability and are exploring similar opportunities in the United States," it said.

"We are evaluating options for US cell manufacturing in line with policy incentives and market demand, and any future investments will support our goal of becoming a holistic clean-energy transition company serving US customers end-to-end."

Waaree Solar Americas primarily serves the US market through its Texas manufacturing facility, which currently operates at 1.6 GW with expansion underway to 3.2 GW, thereby reducing reliance on imports.

"Where imports are required, we maintain a diversified supply chain across multiple countries to avoid any single-source dependence, and all such imports strictly comply with US trade regulations, including AD/CVD rules and rules of origin. Our long-term strategy is to progressively localise more production within the United States to further reduce import needs, and detailed country-wise volumes are provided to regulators as required, though not disclosed publicly for competitive reasons.