Tesla is actively scouting for local partners in India to manufacture its rooftop solar panels. Under this arrangement, the selected partner would be responsible for manufacturing and installation, with Tesla providing the necessary technology and sales expertise. The company has already communicated its plans to the government and is looking for subsidies to support the project.

In addition to its electric vehicles, Tesla makes several home power products covering solar power generation and storage products such as Solar Roof, Powerwall, a battery power storage unit, and solar panels.

India has introduced incentives to promote the rooftop solar sector, which creates a significant opportunity for Tesla. As per projections, India’s solar rooftop capacity will continue to grow at an annual rate of 47 percent. As of December, India’s total installed rooftop solar capacity stood at 11.1GW, with the residential sector accounting for 2.7 GW of that.

The company has requested certain concessions, including lower import duty rates for its vehicles. Tesla has expressed its willingness to invest up to USD two billion in setting up a factory in India if a concessional duty rate of 15 percent on imported cars is granted for the first two years.

Tesla’s plans in India gained momentum after CEO Elon Musk met with Prime Minister Narendra Modi during his visit to the US in June last year. Tesla executives and Indian officials have been working on the details of the company’s entry into the Indian market.