In an interview with Power Line, Simarpreet Singh, Executive Director and Chief Executive Officer, Hartek Group, discussed the company’s recent strides in the power and renewable energy sectors. He shared updates on major project executions, including a 300 MW solar project in Rajasthan and a critical 765 kV substation project for Power Grid Corporation of India Limited (Powergrid). He also shared insights into Hartek’s strong financial performance and its growing focus on digital technologies, energy storage and green hydrogen. Edited excerpts…
What is the current portfolio of the Hartek Group? What are your targets?
The Hartek Group currently manages an energy portfolio of 10 GW, spread across its key divisions – Power Systems, Renewables and Power Distribution Products. This diversified portfolio establishes the company as an important player in India’s power infrastructure. Known for providing comprehensive, end-to-end solutions, Hartek plays a crucial role in improving grid connectivity and integrating renewable energy into the national grid, supporting India’s transition to sustainable energy.
Our target is to achieve Rs 100 billion in revenue by 2030, as part of the group’s Mission 2030. With over three decades of experience in the power sector, Hartek is focused on driving India’s energy transition and expanding our presence in the renewable energy space. Our mission is to continue building on our expertise by providing a comprehensive range of services – from constructing 765 kV substations to executing large-scale solar engineering, procurement and construction (EPC) projects. To meet these targets, we are evaluating a combination of strategic partnerships, and internal and external financing.
As of now, we have the capacity to meet our targets and will be investing based on the profits we generate going forward. Our robust balance sheet, consistent revenue growth and prudent financial management give us the confidence to reinvest earnings strategically. We are committed to maintaining financial discipline while scaling operations, ensuring that growth is both sustainable and self-driven in the near term.
How has been the Hartek Group’s financial performance over the past few years?
The Hartek Group has delivered strong and consistent financial performance over the past few years. Our consolidated revenue grew from Rs 5 billion in FY 2024 to over Rs 10 billion in FY 2025, marking a significant milestone. This growth has been driven by our diversified business portfolio, strong order inflows and timely execution of projects across key sectors such as renewable energy and grid infrastructure. We have maintained healthy earnings before interest, taxes, depreciation and amortisation margins and kept our debt levels under control, reflecting our prudent financial management.
Can you share updates on the 300 MW solar project in Rajasthan and the 765 kV Powergrid project?
The Hartek Group has secured a significant EPC contract valued at Rs 4.74 billion for the development of a 300 MW ground-mounted solar photovoltaic power plant in Rajasthan. Spanning 1,209 acres, the project is divided into three phases. Phase I, which includes 100 MW of line bays, bus coupler bays and transformer bays equipped with a 160 MVA power transformer, has been commissioned.
Further, the Hartek Group is contributing to India’s power transmission strength through a Rs 1.17 billion project awarded by Powergrid. The project includes the extension of a 765 kV air-insulated substation and 400/220 kV works in Gujarat, supporting the Central Electricity Authority’s vision for a stronger national grid. The deployment of 765 kV substations – critical for cross-regional power flow and grid stability – represents a key step towards resolving power shortages. These substations now constitute around 23 per cent of India’s total transformation capacity, which stands at 1,253,040 MVA.
What have been the trends in the profit margin of EPC players in the solar space?
Profit margins in solar EPC have narrowed due to intense competition, fluctuating input costs and supplier dependency. Typical margins differ due to pressures from price-sensitive bidding. Solar EPC starts becoming unviable when tariffs fall, especially if module and commodity prices are high. An efficient supply chain, economies of scale and digital project management are crucial to maintaining profitability.
What are the current EPC cost trends (Rs per MW) of utility-scale, commercial and industrial (C&I) rooftop solar and floating solar projects?
EPC costs for solar projects in India currently stand at approximately Rs 25 million-30 million per MWp for utility-scale projects, Rs 22 million– 25 million per MWp for C&I rooftop installations, and Rs 32 million-36 million per MWp for floating solar. Over the past decade, both utility-scale and rooftop solar costs have declined significantly. This trend was largely driven by economies of scale, advancements in solar technology, greater operational efficiency and a steep fall in the prices of solar modules, especially due to imports from China.
Improved inverter efficiency, better tracking systems and competitive bidding have further driven cost optimisation, making solar one of the most affordable sources of power generation in India. However, in recent years, there has been a temporary reversal of this downward trend. A surge in the prices of key raw materials such as polysilicon, copper and aluminium has increased module and component costs. Additionally, the imposition of basic customs duty on imported solar modules and cells, aimed at boosting domestic manufacturing, has also contributed to the increase.
As the industry adapts to these challenges, the long-term outlook remains optimistic, with innovations and domestic production expected to stabilise or reduce EPC costs again in the near future.
What are the key cost components of solar projects (per cent-wise)?
The key cost components in solar EPC are distributed as follows – solar modules account for approximately 60-65 per cent of the total cost, inverters comprise around 8-10 per cent, balance of systems (BoS) such as mounting structures and cabling contribute 20-25 per cent, while civil and electrical works represent 10-12 per cent. The remaining 5-8 per cent is on account of design, labour, project management and contingency costs.
Among these, module prices have the highest potential for further reduction, primarily due to ongoing technological advancements such as higher-efficiency cells (such as TOPCon and HJT), improved manufacturing techniques and economies of scale in production. As global and domestic capacity for module manufacturing expands, increased competition is also likely to drive prices down.
However, some cost components may see upward pressure. BoS and logistics are particularly vulnerable to volatility in the prices of raw materials such as steel, copper and aluminium, as well as to supply chain disruptions. Transportation and storage costs have also risen due to global shipping constraints and fuel price volatility. While technological progress promises long-term cost efficiency, developers must strategically manage these dynamic elements to maintain overall project viability and competitiveness in a rapidly evolving energy market.
What are the key challenges faced in setting up C&I rooftop solar and floating solar projects? What can be done to solve these challenges?
C&I rooftop solar projects face multiple hurdles, including structural limitations, policy inconsistencies and lengthy net metering approval processes. Many buildings are not structurally optimised for solar installation, making feasibility studies critical. Additionally, quality issues such as poor installation practices and substandard components are becoming increasingly common, especially under government programmes. Policy gaps and frequent regulatory changes further deter large-scale adoption.
Floating solar, while promising, is challenged by anchoring and mooring complexities, higher capital costs and limited availability of suitable water bodies.
To overcome these, there is a pressing need for standardised regulations, better quality control and incentives for high quality components. Robust feasibility assessments, project-specific engineering and digitised approvals will also contribute to smoother implementation. For floating solar, research and development (R&D) investments and supportive policies can help reduce costs and technical uncertainties, unlocking their potential.
Which states have conducive open access and net metering regulations for C&I rooftop solar projects?
States such as Rajasthan, Tamil Nadu and Maharashtra have emerged as frontrunners in supporting C&I rooftop solar through favourable open access and net metering policies, enabling smoother project execution and better financial viability. These states offer relatively streamlined net metering approvals, reasonable banking charges and a conducive policy environment that encourages C&I users to adopt solar. Meanwhile, states such as Uttar Pradesh and Haryana have relatively more complex regulatory processes and stricter caps, making them less favourable for C&I adoption. Hartek has successfully executed rooftop solar projects in Jammu and Kashmir and Punjab, with over 20 MW commissioned across industrial zones.
What are the major bottlenecks within the EPC sector?
One of the major bottlenecks within the EPC segment of renewable energy projects is land acquisition, which is heavily affected by bureaucratic delays and complex approval processes. Developers often face issues such as non-digitised land records, fragmented ownership and inflated costs once acquisition plans are made public, making project execution challenging. These delays are particularly pronounced in large-scale solar projects.
Can you share any plans around diversification, perhaps into electric vehicle (EV) infrastructure, green hydrogen or energy storage?
As India pushes forward in its energy transition, we are focused on strengthening our work in grid infrastructure, smart substations and scalable renewable projects. We also see great potential in new areas like green hydrogen, energy storage and EV infrastructure. While our primary focus remains on power and renewables, we are actively exploring how these emerging technologies can complement our work.