Solarworld Energy Solutions and Rays Power Infra will set up a joint venture company to establish a 2.4 GW solar cell manufacturing facility in Madhya Pradesh.

Solarworld’s board approved the execution of a securities subscription agreement and joint venture agreement with Rays Power Infra and Rays Green Energy Manufacturing as part of which the company will acquire a 50% equity stake in Rays Green.

The company will subscribe to equity shares in Rays Green for an aggregate amount of up to ₹1 billion (~$10.58 million). The initial subscription will amount to ₹268.22 million (~$2.84 million) for 12,600 equity shares at an issue price of ₹21,287 (~$225) per share.

Solarworld has also agreed to extend a loan of up to ₹3.2 billion (~$33.86 million) to Rays Green to fund part of the project cost. The loan will be disbursed in one or more tranches based on the project’s funding requirements.

The agreements provide for a combined financial commitment of up to ₹5.2 billion (~$55.02 million), comprising equity subscriptions of up to ₹2 billion (~$21.16 million) from Solarworld and Rays Power and the proposed ₹3.2 billion (~$33.86 million) loan from Solarworld.

The project has an estimated cost of ₹10 billion (~$105.81 million). Of this, ₹4.2 billion (~$44.44 million) is proposed to be funded using unutilized proceeds from Solarworld’s initial public offering.

The joint venture will establish, develop, construct, commission, and operate a 2.4 GW solar photovoltaic cell manufacturing facility on approximately 41.3 acres at Mohasa, Babai, in Madhya Pradesh’s Narmadapuram district.

The facility will manufacture n-type tunnel oxide passivated contact (TOPCon) G12R solar cells. Commercial production is scheduled to begin in June 2027. Building construction is expected to be completed in January 2027, while plant and machinery installation, commissioning, and utilities are scheduled for completion in May 2027.

Solarworld said construction activities have commenced at the project site. Rays Green has entered into a lease agreement with the Madhya Pradesh Industrial Development Corporation for the project land and obtained consent to establish from the Madhya Pradesh Pollution Control Board.

The project is eligible for electricity at a subsidized tariff of ₹4.3 (~$0.046)/kWh.

Solarworld originally proposed using the ₹4.2 billion (~$44.44 million) to invest in its subsidiary, Kartik Solarworld, to partly finance a 1.2 GW TOPCon solar cell manufacturing facility at Pandhurana, Madhya Pradesh. As of June 30, 2026, this allocation had been utilized.

The company now proposes to redirect the entire ₹4.2 billion (~$44.44 million) toward the Rays Green project.

In the first quarter of FY 2027, Solarworld Energy reported revenue of ₹1.78 billion (~$18.62 million), rising 121% year-over-year from ₹805.5 million (~$8.42 million).