The solar PV modules will be manufactured at First Solar’s new manufacturing facility in Tamil Nadu, India.
Azure Power acting CEO Rupesh Agarwal said: “We are pleased to partner with First Solar with their latest Series 7.
“Having a long-term agreement with global solar modules technology leaders like First Solar is key to de-risking our supply side with the latest technology available in the market.”
First Solar’s Tamil Nadu facility will have an annual nameplate capacity of 3.3GWdc and is due to be commissioned in the second half of next year.
The plant will be engaged in the production of First Solar’s Series 7 modules, which will be optimised for the Indian market.
Under the contract agreement, First Solar will deliver the solar modules from the fourth quarter of next year to 2025.
First Solar chief commercial officer Georges Antoun said: “Our relationship with Azure Power goes back over a decade and we are pleased that it is the launch customer for a product that has not only been designed for India, but made in India, for India.
“This deal demonstrates how experienced developers and independent power producers in India are increasingly taking a strategic view on procurement and securing long-term commitments that help tackle the risks of short-term pricing and supply volatility.
“When working with First Solar, they benefit from certainty of pricing and supply, and a technology that is advantaged in India’s operating environments.”
Based in Tempe, Arizona, First Solar develops solar modules and supplies utility-scale solar power plants, as well as offers supporting services.
Last month, the company announced plans to invest up to $1.2bn to increase its domestic solar module production.