Solar module manufacturer and EPC solutions provider Vikram Solar and renewable energy investors Phalanx Impact Partners and Das & Co. have announced the formation of a new joint venture called VSK Energy, which will invest up to $1.5 billion in developing vertically integrated solar manufacturing operations in the U.S.

The strategic partnership combines Vikram Solar’s manufacturing experience with the financial support of sustainability-focused private equity firm Phalanx Impact Partners and Das & Co.’s extensive network and expertise in the solar industry.

The joint venture intends to achieve this goal through two planned projects.

The first phase involves a $250 million investment to establish a solar photovoltaic module manufacturing facility with an initial capacity of 2 GW in Brighton, Colorado. The facility, located at 76 Commerce Center, is expected to commence operations in 2024.

The decision to set up the solar module manufacturing facility in Colorado is strategic, considering the state’s focus on solar power generation.

Colorado Governor Jared Polis stated that it aligns with the state’s plans to achieve 100% renewable energy by 2040. The investment by VSK Energy is expected to contribute to the state’s economy, foster job creation, and strengthen the clean energy sector.

In the second phase of investment, VSK Energy aims to complete its vertical integration by developing a factory in a Southern U.S. state to produce solar ingots, cells, and wafers.

With a planned annual capacity of 4 GW, this factory will require an investment of up to $1.25 billion.

The operationalization of this facility is scheduled for 2025, subject to the evaluation and finalization of available federal, state, regional, and local incentives.

Mortenson, a solar engineering, procurement, construction, and commercial contracting firm, has been appointed to oversee the engineering and construction of both phases of VSK Energy’s investment.

A key objective of VSK Energy is to develop a resilient solar panel and equipment supply chain within the U.S., thereby reducing the country’s dependence on foreign suppliers currently dominating the solar market.

“The passage of the Inflation Reduction Act was a landmark moment for the clean energy future of the United States,” said Sriram Das, Co-Chairman of VSK Energy and Managing Director of Das & Co.

Das also highlighted the significance of this investment in achieving solar technology self-sufficiency, fortifying America’s energy security, and promoting large-scale solar deployment and emphasized the collaboration between leaders from the United States and India, symbolizing a commitment to America’s clean energy future.

The joint venture formation was facilitated by global law firms Dentons, McDermott Will & Emery, and Reed Smith.

Vikram Solar, an India-based solar manufacturing and EPC company, has over 3.5 GW of solar manufacturing capacity in India and an EPC portfolio of 1.42 GW.

Last August, President Joe Biden signed the ‘Inflation Reduction Act of 2022,’ which proposes $369.75 billion in energy security and climate change programs over the next ten years.

Recently, the American Clean Power Association said that the utility-scale clean energy sector in the U.S. has received investments of over $150 billion since the Inflation Reduction Act was signed into law in August 2022.