India Solar PV Module Manufacturing Report

Page | 1
 India Solar PV Module Manufacturing Report
Preface
Starting with the National Solar Mission in 2010, solar power, especially solar PV, has been growing at
a hectic pace in India.

From almost insignificant installations in 2010, the total installed capacity of solar PV has crossed 8700
MW by October 2016. That is a fairly good achievement in just six years.

The growth in this sector is set to accelerate even further, with the NDA government at the center
significantly enhancing the targets to be achieved – the new targets are now a total of 100 GW by
2022. Adding to the efforts from the center is the role of many states, each of which has its own
ambitious solar policies.

Not surprisingly, the lion’s share of the capacity addition has come from MW-scale, ground mounted
utility solar PV power plants. Solar Mango estimates almost 90% of all capacity added in solar PV since
2010 has been in the MW-scale solar sector. In contrast, the growth in rooftop solar has been slow
but has picked up the pace in 2016 with the central and state governments’ policy initiatives and the
World Bank bringing in investments worth $625 million into this sector.

These developments signify that there is a rising demand for solar modules in India. The interest for
module manufacturing in India had been relatively subdued until 2015, due to the sector not being
competitive with imported Chinese modules. But with the central government’s aggressive push to
support domestic manufacturing, the scenario is getting increasingly attractive for setting up solar
module manufacturing units.

It is hence no surprise that there is significant interest among new and existing businesses to venture
into or expand operations in solar manufacturing.

The India Solar PV Manufacturing Report provides a comprehensive overview of the Indian Solar PV
module manufacturing industry. This report is mainly intended for companies and businesses looking
forward to investing in this sector. The technology under consideration here are crystalline modules,
as these constitute the vast majority of the market.

This report was created by Solar Mango, the #1 Solar Guide, and was last updated in December 2016.

Narasimhan Santhanam
Co-Founder & Director
Solar Mango, a division of EAI
narsi@solarmango.com
www.solarmango.com`

Page | 2
 India Solar PV Module Manufacturing Report
Contents
Preface .................................................................................................................................................... 1
List of Tables ........................................................................................................................................... 6
List of Figures .......................................................................................................................................... 7
1 Indian Solar PV Industry Status and Current Trends....................................................................... 9
1.1 Introduction ............................................................................................................................ 9
1.2 Solar Photovoltaics................................................................................................................ 10
1.3 Current Solar Photovoltaic Market Scenario ........................................................................ 10
1.3.1 Market Share of PV Technologies ................................................................................. 10
1.3.2 Global Market Overview ............................................................................................... 14
1.3.3 Domestic Market Overview .......................................................................................... 20
1.4 Demand and Supply of Modules ........................................................................................... 26
1.4.1 Estimates for DCR Market Potential ............................................................................. 26
1.4.2 Demand - Total Market Potential for Indian Module Makers ...................................... 27
1.4.3 Supply ............................................................................................................................ 31
1.5 Solar Module Import and Export Trends .............................................................................. 32
1.5.1 Imports .......................................................................................................................... 32
1.5.2 Exports .......................................................................................................................... 35
1.5.3 Impact of GST ................................................................................................................ 36
1.6 Indian Solar Market Segmentation ....................................................................................... 37
1.6.1 Size of the Project ......................................................................................................... 38
1.6.2 Type of end user ........................................................................................................... 47
1.7 Potential Business Segments for Solar Modules................................................................... 51
1.7.1 Segment-wise Potential ................................................................................................ 51
1.7.2 Region-wise Potential ................................................................................................... 52
1.7.3 Industry-wise Potential (for rooftop & captive)............................................................ 58
1.8 Major Module Manufacturers .............................................................................................. 62
1.8.1 Domestic Players ........................................................................................................... 62
1.8.2 International Module Makers ....................................................................................... 63
1.9 Solar Module Market Competition Analysis ......................................................................... 64
1.10 Drivers and Barriers for Solar PV Module Investments ........................................................ 67
1.10.1 Drivers ........................................................................................................................... 67
1.10.2 Barriers .......................................................................................................................... 69
2 Basics of Modules - Technology Involved ..................................................................................... 70

Page | 3
 India Solar PV Module Manufacturing Report
2.1 Introduction .......................................................................................................................... 70
2.2 Modules ................................................................................................................................ 71
2.2.1 Technology Options – Crystalline Silicon vs. Thin Film ................................................. 72
2.2.2 Crystalline Module Making ........................................................................................... 75
2.3 PV Module Manufacturing Line ............................................................................................ 80
2.3.1 Module Line Classification ............................................................................................ 80
2.3.2 Technical Features of Module Lines ............................................................................. 81
2.3.3 Scope of Work of a Module Equipment Supplier ......................................................... 82
2.3.4 Machines and Equipment ............................................................................................. 82
2.4 Conditions of Sale ................................................................................................................. 98
2.5 Testing and Certification of Modules .................................................................................. 100
2.5.1 Global Certification Standards .................................................................................... 100
2.5.2 List of Certifications Made Mandatory by the Indian Government ............................ 100
2.5.3 New Regulations by MNRE ......................................................................................... 102
2.6 Recent Technology Developments ..................................................................................... 104
3 Investment and Returns.............................................................................................................. 108
3.1 Capital Costs for a Turnkey Module Assembly Line ............................................................ 108
3.2 Cost of Equipment .............................................................................................................. 111
3.3 Chinese versus European Equipment ................................................................................. 114
3.4 Cost of Production .............................................................................................................. 115
3.5 Returns – Cash Flow, IRR, Payback Period .......................................................................... 116
3.6 Government Incentives to Support Solar PV Manufacturing ............................................. 122
4 Risks and Mitigation .................................................................................................................... 124
4.1 Introduction ........................................................................................................................ 124
4.2 Project Completion Risk ...................................................................................................... 124
4.3 Country and Financial Risks ................................................................................................ 126
4.4 Operational Risks ................................................................................................................ 127
4.5 Market Risks ........................................................................................................................ 129
5 Steps to Set up a Module Manufacturing Unit ........................................................................... 130
5.1 Introduction ........................................................................................................................ 130
5.2 Preparation of Pre-Feasibility Study ................................................................................... 132
5.3 Preparation of Detailed Project Report .............................................................................. 132
5.4 Technology Partners ........................................................................................................... 133
5.5 Selection of Equipment Supplier......................................................................................... 135

Page | 4
 India Solar PV Module Manufacturing Report
5.6 Selection of Raw Material Suppliers and Entering into Memorandum of Understanding
(MOU) with Them ........................................................................................................................... 136
5.7 Achieving Financial Closure of the Project.......................................................................... 138
5.8 Implementation of the Project and Government Approvals .............................................. 138
5.9 Module Testing and Certification ....................................................................................... 139
5.10 Contacting Government Officials ........................................................................................ 139
5.11 Sales Partnerships ............................................................................................................... 141
ANNEXURE - I ...................................................................................................................................... 144
List of PV Module Manufacturers – India ....................................................................................... 144
List of PV Cell Manufacturers – India .............................................................................................. 146
List of PV Cell Manufacturers – Global ........................................................................................... 147
ANNEXURE - II ..................................................................................................................................... 153
List of EVA/Back sheet/ Front sheet/ PET/ TPT/TPE/PVB & TCO Manufacturers – Global............. 153
List of Major Solar PV Back Sheet Brands Imported in India .......................................................... 155
ANNEXURE - III .................................................................................................................................... 158
List of Manufacturers of Connectors– Global ................................................................................. 158
ANNEXURE – IV ................................................................................................................................... 161
List of Ribbon Manufacturers – Global ........................................................................................... 161
ANNEXURE – V .................................................................................................................................... 164
List of Manufacturers of Cables – Global ........................................................................................ 164
ANNEXURE – VI ................................................................................................................................... 169
List of Frame Manufacturers – Global ............................................................................................ 169
ANNEXURE – VII .................................................................................................................................. 172
List of Glass Manufacturers – Global .............................................................................................. 172
ANNEXURE – VIII ................................................................................................................................. 176
List of Encapsulant Manufacturers – Global ................................................................................... 176
ANNEXURE – IX ................................................................................................................................... 179
List of Junction Box Manufacturers – Global .................................................................................. 179
ANNEXURE – X .................................................................................................................................... 183
List of Turnkey PV Module Line Suppliers....................................................................................... 183
ANNEXURE – X1 .................................................................................................................................. 185
Sample Quote - 1 ............................................................................................................................ 185
Sample Quote – 2............................................................................................................................ 185
ANNEXURE – XII .................................................................................................................................. 187

Page | 5
 India Solar PV Module Manufacturing Report
Estimation of High Potential C&I sectors for Rooftop and Ground-Mounted Solar....................... 187

Page | 6
 India Solar PV Module Manufacturing Report
List of Tables
Table 1: Indian Solar Sector Overview .................................................................................................... 9
Table 2: Cost Trends for PV Modules - Oct 2016 .................................................................................. 13
Table 3: Market share of solar PV technologies ................................................................................... 14
Table 4: Price Trends along the PV Manufacturing Value Chain .......................................................... 19
Table 5: Global Solar Manufacturing Capacities (2016)........................................................................ 22
Table 6: Top 3 Module Manufacturers in China & India ....................................................................... 23
Table 7: Opportunity Summary of Solar Upstream Value Chain .......................................................... 24
Table 8: Yearly DCR Installations........................................................................................................... 26
Table 9: DCR Estimate for Ground- Mounted Sector............................................................................ 27
Table 10: Non-DCR Estimate for Ground- Mounted Sector.................................................................. 28
Table 11: DCR Estimate for Rooftop Sector .......................................................................................... 28
Table 12: Non-DCR for Rooftop Sector ................................................................................................. 29
Table 13: Solar Capacities in US & Europe ............................................................................................ 29
Table 14: Export Potential for Indian Module Makers ......................................................................... 30
Table 15: Market Size for Indian Module Manufacturers..................................................................... 31
Table 16: Total Solar Module Supply Estimates.................................................................................... 32
Table 17: Imports of Solar Cells & Modules by Value ........................................................................... 33
Table 18: Exports of Solar Cells & Modules by Value ........................................................................... 35
Table 19: Analysis of Key Characteristics of kW-size Residential Projects ........................................... 39
Table 20: Analysis of Key Characteristics of C&I Projects ..................................................................... 42
Table 21: Analysis of Key Characteristics of Ground-Mounted Solar Projects ..................................... 45
Table 23: Analysis of Key Characteristics of End-user Segments (Rooftop Solar) ............................... 48
Table 24: Summary of High Potential States ........................................................................................ 56
Table 25: Potential Market Segments- Commercial & Industrial Sector .............................................. 59
Table 26: Top 10 Module Manufacturers in India by Installed Capacity .............................................. 62
Table 27: Top Ten Panel Manufacturers in 2015 .................................................................................. 63
Table 28: Competition Analysis for the Indian Solar Module Market .................................................. 65
Table 29: Drivers for PV Module Investments ...................................................................................... 67
Table 30: Comparison between different PV technologies .................................................................. 73
Table 31: Semi-automated versus fully-automated ............................................................................. 80
Table 32: Comparison of technical features of semi-automated module lines (sample data) ............ 81
Table 33: Specifications of a Cell Tester (Sample Data) ........................................................................ 84
Table 34: Specifications of Glass Washer (Sample Data) ...................................................................... 86
Table 35: Specifications of Tabber & Stringer Machine (Sample Data) ................................................ 87
Table 36: Specifications of Layup Station (Sample Data)...................................................................... 89
Table 37: Specifications of Laminator Machine (Sample Data) ............................................................ 90
Table 38: Specifications for Edge Trimming Station (Sample Data) ..................................................... 91
Table 39: Specifications of Semi-automatic framer (sample data)....................................................... 93
Table 40: Table 29: Specifications of Automatic Framer (sample data) ............................................... 94
Table 41: Specifications of Sun simulator (Sample Data) ..................................................................... 95
Table 42: Specifications of Lighting Table ............................................................................................. 96
Table 43: Specified Standards based on Draft Technical Regulations ................................................ 103
Table 44: Comparison of CAPEX based on different parameters ....................................................... 109

Page | 7
 India Solar PV Module Manufacturing Report
Table 45: Cost of Equipment for a Semi-automated facility (European Manufacturer) .................... 111
Table 46: Cost of Equipment for a 20 MW Semi-Automated Facility (Chinese Manufacturer) ......... 111
Table 47: European v/s Chinese Module Line Equipment .................................................................. 114
Table 48: Cost of Production for a 50 MW Module Manufacturing Facility ....................................... 116
Table 49: Returns Calculation for a 50 MW Semi-automated facility - Scenario Analysis ................. 120
Table 50: Project Completion Risks..................................................................................................... 124
Table 51: Country and Financial Risks ................................................................................................. 126
Table 52: Operational Risks ................................................................................................................ 127
Table 53: Market Risks ........................................................................................................................ 129
Table 54: List of Prominent Turnkey PV Module Line Suppliers ......................................................... 133
Table 55: Parametric Analysis on Selection of Equipment Supplier ................................................... 135
Table 56: Preferred Region for Sourcing of Raw Materials ................................................................ 137
Table 57: Renewable Energy Agencies & Contact Details .................................................................. 139
Table 58: Preferred End-user segments for EPCs of different sizes ................................................... 142
Table 59: Developer Decision-making for Different End-user Segments ........................................... 143
Table 60: List of PV Module Manufacturers in India .......................................................................... 144
Table 61: Installed Cell Capacity in India (as of April 2016) ................................................................ 146
Table 62: List of Global Cell Manufacturers ........................................................................................ 147
Table 63: List of EVA/backsheet manufacturers ................................................................................. 153
Table 64: Solar PV Back Sheet Brands Imported in India .................................................................... 155
Table 65: List of Solar Connector Manufacturers ............................................................................... 158
Table 66: List of Solar Ribbon Manufacturers..................................................................................... 161
Table 67: List of Cable Manufacturers ................................................................................................ 164
Table 68: List of Solar Frame Manufacturers ...................................................................................... 169
Table 69: List of Solar Glass Manufacturers........................................................................................ 172
Table 70: List of Solar Encapsulant Manufacturers ............................................................................ 176
Table 71: List of Junction Box Makers ................................................................................................. 179
Table 72: List of Turnkey PV Module Line Suppliers ........................................................................... 183
Table 73: Sample Quote - Cost of Equipment for a 20 MW Semi-automated facility (Chinese
Manufacturer) ..................................................................................................................................... 185
Table 74: Sample Quote - Cost of Equipment for a 50 MW fully-automated facility (Chinese
Manufacturer) ..................................................................................................................................... 185

List of Figures
Figure 1: Market Share of Solar PV Technologies ................................................................................. 12
Figure 2: Thin-film annual global PV module production ..................................................................... 12
Figure 3: Solar PV Growth by Region (in GWs) ..................................................................................... 15
Figure 4: Solar PV Upstream Value Chain ............................................................................................. 16
Figure 5: Polysilicon capacity forecasts................................................................................................. 17
Figure 6: Growth in PV Installations in India......................................................................................... 20
Figure 7: Growth in PV Installations – Global v/s Indian ...................................................................... 21
Figure 8: India Solar Imports by Value - Country-wise breakdown ...................................................... 33
Figure 9: Solar module imports by Value (in $ million)......................................................................... 34

Page | 8
 India Solar PV Module Manufacturing Report
Figure 10: India Solar Exports by Value - Country-wise Breakdown ..................................................... 36
Figure 11: State-wise installed capacity................................................................................................ 53
Figure 12: Solar PV Value Chain ............................................................................................................ 72
Figure 13: Solar Module Assembly........................................................................................................ 75
Figure 14: Components of a Solar Module ........................................................................................... 76
Figure 15: Module Assembly Process ................................................................................................... 77
Figure 16: PV Module Production Process............................................................................................ 79
Figure 17: Components of a 200 MW Turnkey production line ........................................................... 82
Figure 18: Cell Tester and Sorter .......................................................................................................... 84
Figure 19: Auto Laser Scribing Machine ............................................................................................... 85
Figure 20: Glass Washer........................................................................................................................ 86
Figure 21: Tabber & Stringer ................................................................................................................. 87
Figure 22: Layup Station ....................................................................................................................... 89
Figure 23: Laminator ............................................................................................................................. 90
Figure 24: Edge Trimming Station) ....................................................................................................... 91
Figure 25: Module Conveyor Belts ........................................................................................................ 92
Figure 26: Semi-automatic Framer ....................................................................................................... 93
Figure 27: Automatic Framer ................................................................................................................ 94
Figure 28: Sun Simulator ....................................................................................................................... 95
Figure 29: EL Test results ...................................................................................................................... 96
Figure 30: Hipot Tester ......................................................................................................................... 97
Figure 31: Visual Inspection .................................................................................................................. 98
Figure 32: Cost comparison of sample quotes - Chinese vs. European ............................................. 113
Figure 33: Next Steps .......................................................................................................................... 131

Page | 9
 India Solar PV Module Manufacturing Report
1 Indian Solar PV Industry Status and Current Trends

The Big Picture

 The Indian solar PV industry recorded massive growth rates with installations having grown
from a mere 460 MW in 2011 to 8700 MW (as of October 2016) at a CAGR of 83%.
 The key target segment for solar modules is utility-scale ground-mounted solar, which
accounts for...
 Indian module makers will be highly dependent on…

1.1 Introduction
Being the first section of the report, the aim of this chapter is to provide a broad overview of the solar
market.

In this section of the report, various aspects of the solar PV modules sector in India are considered.
This includes the details about the various technologies like crystalline silicon and thin films, demand
and supply gap for PV modules in India, industry trends and an overview of the major players in the
solar PV segment in India.

Due to rather low market share of thin film technologies in India and around the world, the focus of
this report is on largely on crystalline silicon, even though we also give details relevant to thin-film
technology.

Before we go into specifics, take a look at the following table which provides a broad overview of the
Indian solar sector
Table 1: Indian Solar Sector Overview
Total available potential India lies in a sunny tropical belt (high
insolation) which means high solar potential.
National Institute of Energy has estimated
India’s solar potential at 749 GW.

Exploited potential (production/installed Exploited potential (production/installed

capacity) capacity) is very little; total installed capacity
(grid and off grid) is approximately 9 GW (as of
Nov 2016)

Future expected production/installed capacity Since the inception of the NDA government in
2014, the JNNSM mission has been revised from
20 GW to 100 GW

Specific government incentives National Solar Mission and other subsidies and
incentives are available through Ministry of
New and Renewable Energy as well as state
governments

Page | 10
 India Solar PV Module Manufacturing Report
Amount of investments happening in this now, Government is expected to spend $100 billion
expected in future until 2022.

Key bottlenecks and barriers  Cost of solar PV

 High population density (land scarcity)
 Technology obsolescence

Cost of power generation - and trends in the Current cost of production – Rs 6/kWh. This
same over years includes O&M, amortized/depreciated capital
costs, loan repayment costs, and other
expenses such as insurance over a 25-year
period

1.2 Solar Photovoltaics

Solar photovoltaics (SPV) is the process of converting solar radiation (sunlight) into electricity using a
device called solar cell. A solar cell is a semi-conducting device made of silicon or other materials,
which, when exposed to sunlight, generates electricity. The magnitude of the electric current
generated depends on the intensity of the solar radiation, exposed area of the solar cell, the type of
material used in fabricating the solar cell, and ambient temperature. Solar cells are connected in series
and parallel combinations to form modules that provide the required power.

1.3 Current Solar Photovoltaic Market Scenario

1.3.1 Market Share of PV Technologies

1.3.1.1 Crystalline PV

The majority of PV modules produced today use crystalline silicon (c-Si) as it is a light absorbing
semiconductor. The c-Si technology was originally developed for the semiconductor industry to
produce PV cells for integrated circuits and microchips. These PV modules have energy conversion
efficiencies in the range of 14 - 16 percent. The energy conversion efficiency of a solar module is the
percentage of incident sunlight converted into electricity.

The two types of crystalline silicon technologies used to produce PV modules are monocrystalline and
multi-crystalline (also called poly-crystalline). Mono-crystalline technology uses cells that are made
from thin wafers sliced from a single, pure crystal silicon ingot.

A polycrystalline cell is cut from a multifaceted silicon crystal. More surface area is required due to
inherent flaws and these panels are less efficient compared to polycrystalline panels in converting the
sun's rays into electricity. Under the current market conditions, a monocrystalline module per watt is
5-10% costlier than polycrystalline module. This has been the main reason driving up the market share
for crystalline silicon panels. The market share of crystalline silicon is estimated to be about 90%.

Page | 11
 India Solar PV Module Manufacturing Report
1.3.1.2 Thin-film PV

The high demand for crystalline silicon PV modules had outstripped production, which caused an
increase in the prices of crystalline cells. As a result, a number of PV cell manufacturers have begun
using less expensive semiconductor materials including amorphous silicon (a-Si), cadmium telluride
(CdTe), copper indium di-selenide (CIS) or copper indium gallium selenide(CIGS). These materials are
good light absorbers and are fairly thin. Among these, CdTe is the most prominent technology being
followed currently, followed by a-Si and CIGS. They are known as thin-film because they are deposited
in very thin layers on stainless steel, glass or a flexible substrate. The thickness of the film is less than
1 micron. Like c-Si, thin-film PV cells are combined into modules and laminated to protect them from
the elements.

The thin film value chain is much shorter, as the modules are manufactured in one single step from
raw silicon and other compounds by depositing the photovoltaic material and other chemicals on glass
or transparent film. Take a look at the market share of thin-film technology below.

Figure 1: Market Share of Solar PV Technologies (Source: Photovoltaic Report, Fraunhofer ISE)

The market share chart tells us that Crystalline Silicon technologies (both mono- and poly-silicon)
dominate the market with over 90% market share at the global level. In 2015, the market-share of all
thin-film technologies…

Figure 2: Thin-film annual global PV module production (Source: Photovoltaic Report, Fraunhofer
ISE)

On an interesting note, thin film had a much higher market share in India, owing to the penetration
of…

1.3.1.3 Summary

The table below gives the breakup of the various technologies.

Table 2: Market share of solar PV technologies (Source: Compiled from various sources)
Type Share of total solar PV market
by installed capacity – 2015 (%)
Crystalline

Monocrystalline

Polycrystalline

Thin-film

Page | 12
 India Solar PV Module Manufacturing Report
a-Si

CdTe

CIGS

Market share for polycrystalline modules is expected…

Now, let us take a look at the average cost of PV modules and cells.

Table 3: Cost Trends for PV Cells & Modules - Oct 2016 (Source: PVinsights, Energy Trends)
Polycrystalline module ($/W)

Monocrystalline module ($/W)

Thin-film module ($/W)

156 mm multi solar cell ($)

156 mm mono solar cell ($)

1.3.2 Global Market Overview

1.3.2.1 PV installed Capacity by region

The increased competitiveness of solar PV coupled with attractive government policies and incentives
has encouraged the growth of solar PV all around the world. Earlier, although Europe was by far the
largest contributor to solar PV installations around the world, the scenario has changed significantly
since 2008 when the Chinese solar PV manufacturing boom drove down the prices of solar panels.

The total Solar PV installed capacity reached 227 GW in 2015, growing at CAGR of 41.5% since 2010.

Figure 3: Solar PV Growth by Region (Source: IEA PVPS)

1.3.2.2 PV Manufacturing Value Chain

In this section, we discuss the market trends witnessed along the PV manufacturing value chain. The
solar PV manufacturing chain consists of polysilicon, ingots and wafers, cells followed by modules, as
shown below.

Page | 13
 India Solar PV Module Manufacturing Report

Polysilicon

Ingots and wafers

Cells

Modules
Figure 4: Solar Upstream Value Chain

I. Global Polysilicon Trends

Figure 5: Polysilicon capacity forecasts (Source: REC Silicon, PV-tech)

II. Global Wafer and Cell Trends

III. Global Module Production Trends

The module production capacity during 2016 is about 65 GW and China accounted for two-third of
this capacity. Monocrystalline cells and modules continued to gain market share from multi-crystalline
in 2015.

1.3.2.3 Price Trends along the PV Manufacturing Value Chain

The following table represents data on global prices of module, cell, wafer and polysilicon.

Figure 6: Price Trends along the PV Manufacturing Value Chain (Source: Mercom, EnergyTrends,
PVinsights)

Take a look at key price trends observed in the solar market as of October 2016.

 Polysilicon spot prices have seen a significant uptrend over the last month after experiencing
inventory sell-off in September. The reason for this can be attributed to significant demand
increase downstream.
 Wafer prices…

Page | 14
 India Solar PV Module Manufacturing Report

1.3.3 Domestic Market Overview

1.3.3.1 Manufacturing Trends in Upstream Solar PV Value Chain

The business opportunities in the solar energy sector is among the fastest growing in the world. Solar
manufacturing, as a business opportunity, has been witnessing sharp growth in the recent past in
India.

To get a glimpse of solar manufacturing in India, let’s take a look at the comparison table below.

Table 4: Global Solar Manufacturing Capacities

Polysilicon (Metric Tons, Ingots & Wafers Cell (GW) Modules (GW)
MT) (GW)
Global
India

Despite increasingly attractive policies for solar manufacturing, India significantly lags behind other
Asian countries such as China and Taiwan in expanding its solar manufacturing capabilities. The
following table clearly depicts the magnitude of solar module manufacturing in China, which highly
contrasts with the Indian scenario.

Table 5: Top 3 Module Manufacturers in China & India

China’s Top 3 Module Manufacturers India’s Top 3 Module Manufacturers

There is a wide differentiation with regard to the business opportunities and their drivers in different
manufacturing sectors in the solar value chain. A summary of the opportunities for businesses in the
solar PV upstream value chain in India (and globally) is as follows:

Table 6: Opportunity Summary of Solar Upstream Value Chain (Source: Solar Profits Report – Solar
Mango)
Payba Margin
Value chain Competiti Investmen ck Potentia
component on t required period l Key Drivers Suitable for
Polysilicon 


Ingots & Wafers

Solar Cells

Glass

Page | 15
 India Solar PV Module Manufacturing Report
Payba Margin
Value chain Competiti Investmen ck Potentia
component on t required period l Key Drivers Suitable for
Solar 
Module(Crystalli
ne)
Solar 
Module(Thin
Film)

1.3.3.2 Domestic market growth

Solar PV Installed Capacity in India (MW)

10000
9000
8000
7000
6000
5000
4000
3000
2000
1000
0

Figure 7: Growth in PV installations in India (Source: MNRE, Solar Mango Research)

Solar PV installations in India have grown from a mere 460 MW in 2011 to almost 5200 MW by end
2015– a stunning 83% annual growth.

1.4 Demand and Supply of Modules

1.4.1 Estimates for DCR Market Potential

The Domestic Content Requirement (DCR) policy which made it mandatory to locally sourced modules
created a market for Indian solar module makers. Prior to this, until about 2011 when the Indian solar
market started gathering pace, most of the Indian solar module capacity catered to the export market.

Table 7: Yearly DCR Installations (Source: Solar Mango & MNRE)

Yearly Installations DCR Installations DCR Cumulative Capacity
Year (MW) (MW) % (MW)
2009
2010
2011
2012

Page | 16
 India Solar PV Module Manufacturing Report
2013
2014
2015
2016
E
2017
E
2018
E

TAKEAWAY for DCR Estimates

Our preliminary inference is as follows:

 Overall, we expect…
 For the year 2016, …
 For the year 2017, …

1.4.2 Demand - Total Market Potential for Indian Module Makers

This section quantifies the market for Indian module makers for the following:
 Ground-Mounted Projects
o Under DCR
o Non-DCR
 Rooftop Projects
o Under DCR
o Non-DCR
 Exports

1.4.2.1 Ground-Mounted

a) DCR Market for Ground-Mounted Solar

Table 8: DCR Estimate for Ground- Mounted Sector (Source: Solar Mango Estimate)
Year MW

2016

2017

2018

b) Non DCR Market for Ground-Mounted Solar

Table 9: Non-DCR Estimate for Ground- Mounted Sector (Source: Solar Mango Estimate)

Page | 17
 India Solar PV Module Manufacturing Report
Year MW

2016

2017

2018

1.4.2.2 Rooftop Market

a) DCR Market for Rooftop Solar

Table 10: DCR Estimate for Rooftop Sector (Source: Solar Mango Estimate)
Year MW

2016

2017

2018

b) Non DCR Markets for Rooftop Solar

With all the above inputs, and based on historical data available with Solar Mango for this sector, we
estimate the following to be the market for domestic solar modules for the non-DCR rooftop solar
market.

Table 11: Non-DCR for Rooftop Sector (Source: Solar Mango Estimate)
Year MW

2016

2017

2018

1.4.2.3 Export Market

Table 12: Solar Capacities in US & Europe
Region 2015 Installation (total in GW) 2016 expected ( in GW)

USA

Europe

Table 13: Export Potential for Indian Module Makers (Source: Solar Mango)
Year Export potential (MW)

2016 150

Page | 18
 India Solar PV Module Manufacturing Report
2017 200

2018 250

TAKEAWAY - Total Available Market for Indian Module Manufacturing Companies

With all the above sectors taken into account, Solar Mango estimates the following market size
available for Indian module makers next 3 years.

Table 14: Market Size for Indian Module Manufacturers (Source: Solar Mango Estimate)
Year DCR Non-DCR DCR Non-DCR Exports Total
Ground Ground Rooftop Rooftop (MW) Range
Mounted Mounted (MW) (MW) (MW)
(MW) (MW)
2016

2017

2018

1.4.3 Supply
Table 15: Total Solar Module Supply Estimates (Source: Solar Mango)
Year Installed Capacity (GW)

2016F

2017F

2018F

1.5 Solar Module Import and Export Trends

1.5.1 Imports

Despite the growing capacity of solar module manufacturing capacities in India, a large proportion of
solar module requirements is met by imports.

Table 16: Imports of Solar Cells & Modules by Value

Apr-Jul 2015 Apr-Jul 2016 YoY Percentage Difference

in ₹ million In US $ million in ₹ million In US $ million

Page | 19
 India Solar PV Module Manufacturing Report

(Source: Mercom Capital Group, Data from Dept. of Commerce)

Figure 8: India Solar Imports by Value - Country-wise breakdown

Figure 9: Solar module imports by Value (in $ million)

1.5.2 Exports

India today has a domestic module manufacturing capacity of about 4300 MW. Of this, India's top-tier
module manufacturing companies (Vikram Solar, Tata Solar, Waaree Energies and EMMVEE
Photovoltaics Power Pvt Ltd) contribute about 30% of the overall capacity.

Table 17: Exports of Solar Cells & Modules by Value

Apr-Jul 2015 Apr-Jul 2016 YoY Percentage Difference

in ₹ million In $ million in ₹ million In $ million

(Source: Mercom Capital Group, Data from Dept. of Commerce)

(Source: Mercom Capital Group)

Figure 10: India Solar Exports by Value - Country-wise Breakdown

1.6 Indian Solar Market Segmentation

In a highly diverse solar market, focusing on the right segment where the module maker can play to
its’ strength is of prime importance. This section provides an overview of the relevant end-market for
module makers.

Here, Solar Mango defines the parameters that the influence each market segment and discusses the
characteristics and features of each.

Solar Mango has classified the market segments based on:

 Size of the project

 Type of end user

Note: The market segmentation based on type of end-user focusses on rooftop solar sector

Page | 20
 India Solar PV Module Manufacturing Report
1.6.1 Size of the Project
1.6.1.1 Rooftop

Rooftop sector can be classified into:

 kW size residential projects (1-10 kW)

 Industrial & Commercial rooftop solar projects (10 kW – 1 MW)

1.6.1.1.1 kW size residential projects (1-10 kW)

The sub-segments under consideration for kW-size residential projects are:

 100 W-1 kW
 1-3 kW
 3-10 kW
 Greater than 10 kW

Solar Mango has identified the following characteristics that govern the kW-size residential projects.

 Customer profile
 Motivation
 Type
 Price sensitivity
 Geography / demographics
 Other expectations

Here’s a table that provides detailed inputs on the key characteristics of the kW-size residential solar
market segments.

Page | 21
 India Solar PV Module Manufacturing Report
Table 18: Analysis of Key Characteristics of kW-size Residential Projects
Size of Parameters
Project Customer Motivation Type Price sensitivity Geography /
profile demographics

100 W-1
kW

1-3 kW

3-10 kW

Greater
than 10
kW

1.6.1.1.2 Industrial and commercial rooftop solar projects

The sub-segments under consideration for C&I rooftop solar projects are:

 10-25 kW
 25-100 kW
 100-500 kW
 Greater than 500 kW

Solar Mango has identified the following characteristics that govern the C&I rooftop solar projects.

 Type/profile of Customer
 Motivation
 Business Model
 Type
 Price sensitivity
 Other Expectations

Here’s a table that provides detailed inputs on the key characteristics of the C&I rooftop solar market
segments.

Page | 22
 India Solar PV Module Manufacturing Report
Table 19: Analysis of Key Characteristics of C&I Projects
Size of Parameters
Project

Type/profile of Motivation Business Model Type Price sensitivity

Customer

10-25 kW 

25-100 kW  

100-500 kW   

Greater than   
500 kW

Page | 23
 India Solar PV Module Manufacturing Report
1.6.1.2 Ground-mounted

The ground-mounted, MW scale solar power sector is the largest contributor to the growth of Indian
solar power. Indeed, this has been the case not just in India, but in many other countries that have
been recent entrants to solar power (countries such as Germany and Japan, much earlier entrants,
still have a majority of their total installed capacity coming from rooftop solar installations).

One of the better ways to analyze ground-mounted solar power plants is along their sizes.

 1-3 MW
 5-10 MW
 10-50 MW
 50+ MW

Key characteristics for ground-mounted (usually MW scale) projects are provided below.

 Type/profile of Developer/Investor
 Typical Business Model
 Type of EPC
 Extent of Outsourcing that could be required

The table below provides detailed inputs on the key characteristics of ground-mounted solar projects
of varying sizes.

Page | 24
 India Solar PV Module Manufacturing Report
Table 20: Analysis of Key Characteristics of Ground-Mounted Solar Projects
Project Size Parameters
Type/profile of Developer/Investor Typical Business Model Type of EPC preferred

1-3 MW  

5-10 MW 

10-50 MW  

50+ MW 

25 | P a g e
 India Solar PV Module Manufacturing Report
1.6.2 Type of end user
The various end-user segments are as follows:

 Residential
 Commercial
 Industrial
 Institutions
 Government

Solar Mango has identified the following characteristics that govern end-user market segmentation.

 Cost of grid power

 Size/scale of solar power requirement
 Technology
 End use applications
 Price sensitivity

By analyzing the various factors that affect each end-user segments, Solar Mango differentiates one
segment from the other.

26 | P a g e
 India Solar PV Module Manufacturing Report
Table 21: Analysis of Key Characteristics of End-user Segments (Rooftop Solar)
End-user Parameters
Classification
Cost of grid Size/scale of Technology End use Price
power solar power applications sensitivity
requirement

Residential

Commercial

Industrial

Institutions

Government

1.7 Potential Business Segments for Solar Modules

This section discusses the high potential sectors for solar modules in India under the following
categories.

 Segment-wise
 Region-wise
 Industry-wise

1.7.1 Segment-wise Potential

Ground Mounted Potential

As of October 2016, of the 8500 MW installed capacity of solar power in India, almost 90% of installations
are ground mounted solar power plants with capacities 1 MW and above.

Rooftop Solar

In the first two years (2011-13) since solar power installations started cropping up in India, the solar
industry hardly bothered about the rooftop solar sector as they were getting both volumes and margins
in the ground-mounted, utility scale sector.

1.7.2 Region-wise Potential

1.7.2.1 High Potential States – current and future

Broadly, Solar Mango analyses the following parameters for the top states:

 Installed Capacity

27 | P a g e
 India Solar PV Module Manufacturing Report
 Policy Framework
 Power Evacuation Infrastructure
 Economic fundamentals
 State of Discom

As the solar irradiation available at the location is fairly similar in the most attractive states, this parameter
has been omitted for analysis. Now, let us evaluate the how these factors play out for different states.

(Source: MNRE & Solar Mango Analysis)

Figure 11: State-wise installed capacity

1.7.2.2 High Potential Cities & Towns – Current and Future

Due to the inherent problem of space constraints, solar installations in cities are predominantly rooftop-
based. Hence, the focus of discussions in this section revolves around rooftop solar.

Some of the factors in the previous section can be applied here as well. Of these, the prime parameters
for differentiation of high potential cities are grid tariffs and policy framework.

Let’s take a look at some of the solar-friendly cities in India.

I. Delhi
As far as cities in India are concerned, Delhi has been a pioneer as far as rooftop solar installations are
concerned. A well-defined solar policy coupled with the high grid tariffs in the state makes it naturally
attractive for solar. Through the Delhi Solar Policy, the state government has been promoting solar not
just on commercial and industrial rooftops, but also for residential consumers through a Generation-
Based Incentive (GBI).

1.7.3 Industry-wise Potential (for rooftop & captive)

1.7.3.1 Attractive C&I Sectors

Solar Mango has estimated the potential of C&I segments for both rooftop and off-site systems by
evaluating six parameters. These are:

1. Profit Margins
2. Day-time energy consumption
3. Overall Energy consumption
4. Availability of Rooftop Space
5. Grid Tariff, and
6. Pioneer Mentality

28 | P a g e
 India Solar PV Module Manufacturing Report
Based on our calculation, below is the list of High Potential sectors for Rooftop & Off-site systems:
Table 22: Potential Market Segments- Commercial & Industrial Sector
ROOFTOP OFF-SITE

No. of Companies No. of Companies having

Sectors having Annual Revenue Sectors Annual Revenue of 10
of 10 Crores & above* Crores & above*

Chemicals, 1976
Pharmaceuticals &
Leather

Automobile/Auto
3179
Ancillaries

1.7.3.2 Attractive Institutional Sectors

Over and above the C&I sector, government institutions also have been analyzed as an attractive market
since there is always a guarantee of payments with the government, though the payments could be
delayed. Most competitors are ardently eyeing this segment since the security of payments and scale
under this sector is far more supreme than the other sectors.

29 | P a g e
 India Solar PV Module Manufacturing Report
The Government usually prefers pay-per-unit model as it does away with the huge initial investments
required for putting up the plant.

The estimates for each government sector are provided below:

1.8 Major Module Manufacturers

This section discusses the major players in module manufacturing from around the world and in India.

1.8.1 Domestic Players

According to the latest published MNRE data (June 2016), Indian module manufacturing capacity stands
at 5800 MW. But Solar Mango research suggests that many of these are not operational or obsolete
facilities. The operational module manufacturing capacity is estimated to be around 4300 MW.

The table below gives a list of module manufacturers in India by capacity, as announced by them.

Table 23: Top 10 Module Manufacturers in India by Installed Capacity (Source: MNRE)
Companies Installed Capacity (MW)

Waaree Energy 500 MW

Vikram Solar 500 MW

The complete list of module manufacturers is provided in the Annexure A1.

Highlights

30 | P a g e
 India Solar PV Module Manufacturing Report
 Although still a fairly slow market, several prominent Module Manufacturers such as Vikram Solar,
Waaree and smaller manufacturers such as CEL, PV Power, ….


Future Trends for Capacity Addition

 Vikram Solar's annual PV Module production capacity…

1.8.2 International Module Makers

PV Tech, one of the credible solar industry sources, ranks the top solar panel manufacturers according to
the shipments they have made for a fiscal year.

Please find the international module manufacturer ranking for 2015 below:

Table 24: Top Ten Panel Manufacturers in 2015

Rank Manufacturer Country Shipments,2015
(GW)

10

1.9 Solar Module Market Competition Analysis

The solar module market is a highly competitive one in India, with four distinct types of companies in the
field:

31 | P a g e
 India Solar PV Module Manufacturing Report
 Small Domestic Module Makers
 Medium-Large Domestic Module Makers
 Chinese Module Makers
 Non-Chinese International Module Makers

For a new entrant, it will be instructive to understand the key strengths and weaknesses of each of the
four types of competitors, and also have an appreciation of the market strategies being adopted by them.

Table 25: Competition Analysis for the Indian Solar Module Market

1.10 Drivers and Barriers for Solar PV Module Investments

1.10.1 Drivers

Solar Mango has complied and analyzed all the major levers and the type of impact they will likely have
on the industry.

Chances that this will

drive/affect module sales by
Lever Current Situation
2016 2020

NTPC announced a total DCR of 1900 MW on 7190 MW of

Domestic solar projects under JNNSM Phase 2 as of Mar 2016. This is
Content 26% of the total planned capacity. Solar projects taken up by
High Low
Requirement the Indian Army, Railways and other public sector
(DCR) enterprises (including NTPC) will be subsidised by INR 1 crore
for each MW of capacity.

The recent Ruling by the World Trade Organisation (WTO)

against India with regard to using domestic cells and
modules for DCR projects could be of significant relevance in
the context of overall demand for locally made cells. There
is a possibility that the Indian government could arrive at
WTO Ruling Medium High
some compromise, failing which the government has
assured solar cell and module makers that it will resort to
purchasing local cells and panels through solar power plants
fully owned and developed by PSUs (railways, defence,
NTPC etc., for which the WTO ruling does not apply.

32 | P a g e
 India Solar PV Module Manufacturing Report
Imposition of Anti-Dumping duties by countries such as USA
and Europe is causing global solar module manufacturers to
consider setting up plants in India. There are however no
Anti-Dumping signs of the Indian Government imposing any anti-dumping
Low Medium
Duty duties on solar products imported from outside the country.
We do not expect any support from ADD for the next 2-3
years.

Modified Special Incentive Package Scheme (M-SIPS): 20%

and 25% subsidy on capital expenditure has been announced
for entities establishing cell and module lines in Special
Economic Zones (SEZ) and Non-SEZs, respectively. Some
Module state governments are providing further incentives. For
Manufacturing Low Medium-High example, Andhra Pradesh, which has one of the better
Support policies, provides additional financial assistance of up to INR
2.5 million (USD 40,000) along with subsidy in power tariffs,
exemption of stamp duty, VAT/CST tax exemption for first
five years of operation.

Y – Yes; N – No

1.10.2 Barriers

1. Because of the ease of entry, it is important for a new comer to invest heavily in “Marketing”
capabilities.
2. High working capital requirement - the major cost factor is the material cost. Typically, the
working capital requirement is about 3-4 times that of capital expenditure.
3. Policy Stability - As mentioned earlier, the demand for Solar PV modules is driven by the
government policies and the subsidies offered for the Solar PV power projects. In India, especially
at state level, there is significant uncertainty about successive governments continuing with the
policies of their predecessors. This creates a barrier to investments for projects such as solar PV
that depend on long term power purchase agreements for their viability. This can lead to reduced
capacity utilization.

33 | P a g e
 India Solar PV Module Manufacturing Report
2 Basics of Modules - Technology Involved

The Big Picture

 Crystalline Silicon modules, which is the dominant market technology with over 90% of global
market share, can be categorised into monocrystalline and polycrystalline. Current polycrystalline
modules have achieved efficiencies of 14-5-16.5% while monocrystalline modules have achieved
higher efficiencies of 17-21%.
 The minimum recommended sizes for module facilities in India are given below…

2.1 Introduction
Solar PV modules can be produced using different technologies. Today, crystalline silicon technology leads
the Solar PV module production, followed by thin films. There are also other technologies being
developed, but crystalline silicon technology and thin film technology will continue to dominate the solar
PV module space for the foreseeable future, unless some technology breakthrough happens. As
mentioned in earlier sections, since thin-films are very nascent in India, only crystalline silicon technology
is discussed in detail in this section, even though details about thin-films is also provided for the sake of
completion.

In this section, the technology details of the crystalline silicon and thin film modules are provided. The
production processes for both these technologies is also explained in detail. The important equipments
used for the production are discussed subsequently. Once a module is produced, it is important to test
and certify them before they can be sold to customers.

The details about the various testing and certification standards for modules are discussed in this chapter
followed by some of the latest developments in the Solar PV technology.

2.2 Modules
A solar panel (photovoltaic module or photovoltaic panel) is a packaged interconnected assembly of solar
cells, also known as photovoltaic cells. The solar panel can be used as a component of a larger photovoltaic
system to generate and supply electricity in commercial and residential applications.

History

Solar energy was developed about a century ago. Solar power was initially used for the production of
steam to drive machinery. Later on Henri Becquerel discovered the "photovoltaic effect" explaining the
process of converting sunlight into electric energy. The first solar cell was invented in 1893 by Charles
Fritts by coating sheets of selenium with a thin layer of gold. Subsequently, the solar panel came into
existence by Russel Ohl. These solar panels were used in space satellites.

34 | P a g e
 India Solar PV Module Manufacturing Report
Today, solar panels and complete solar panel systems are used to power a wide variety of applications.
Solar panels in the form of solar cells are still being used in calculators, keyboards and other mobile
devices. Recently, they are being used to provide power to entire homes and commercial buildings. The
world is presently witnessing the evolution of next generation solar power plants powering the needs of
an entire nation.

Family

Where does solar module come in the product chain?

The picture below shows the Solar PV Value Chain. The solar PV module production is the final stage in a
series of steps that starts with the raw material Quartz. The Quartz is first converted to Poly-silicon which
is then converted to Ingots (mono-crystalline or multi-crystalline). These Ingots are then sliced to form
thin wafers. In the next stage, these silicon wafers are subjected to chemical processing and are converted
to semi-conductors by doping the wafers with elements like Phosphorous, Boron, etc. The final product is
the PV module which is produced by assembling several cells and interconnecting them.

Quartz Polysilicon Ingots Wafers Cells Modules Arrays

Figure 12: Solar PV Value Chain

The assembly of crystalline Si solar modules is most commonly carried out in the cell plant, but can be
done in smaller plants closer to the end market. The latter can be preferable as solar cells are relatively
inexpensive to transport, whereas modules with a glass front sheet and an aluminum frame are heavy
and bulky. In general, thin film modules must be assembled in the cell plant because the cells are too
susceptible to mechanical damage during transportation unless they are packaged within a module.

2.2.1 Technology Options – Crystalline Silicon vs. Thin Film

In the world of photovoltaic (PV) solar power, there are several types of semiconductor technologies
currently in use for PV solar panels. Two, however, have become the most widely adopted: crystalline
silicon and thin film.

35 | P a g e
 India Solar PV Module Manufacturing Report

2.2.1.1 Crystalline Silicon

Crystalline silicon panels are constructed by first putting a single slice of silicon through a series of
processing steps, creating one solar cell. These cells are then assembled together in multiples to make a
solar panel. Crystalline silicon, also called wafer silicon, is the oldest and the most widely used material in
commercial solar panels. There are two main types of crystalline silicon panels:

 Monocrystalline Silicon
 Polycrystalline Silicon

Monocrystalline Silicon

Monocrystalline (also called single crystal) panels use solar cells that are cut from a piece of silicon grown
from a single, uniform crystal. Monocrystalline panels are among the most efficient yet most expensive
on the market. They require the highest purity silicon and have the most involved manufacturing
process.

Polycrystalline Silicon

Polycrystalline (also called multi-crystalline) panels use solar cells that are cut from multifaceted silicon
crystals. They are less uniform in appearance than monocrystalline cells, resembling pieces of shattered
glass. These are the most common solar panels on the market, being less expensive than monocrystalline
silicon. They are also less efficient, though the performance gap has begun to close in recent years.

2.2.1.2 Thin Film

Thin film solar panels are made by placing thin layers of semiconductor material onto various surfaces,
usually on glass. The term thin film refers to the amount of semiconductor material used, which is thinner
than the width of a human hair. Contrary to popular belief, most thin film panels are not flexible. Thin film
solar panels offer the lowest manufacturing costs, and are becoming more prevalent in the industry. Three
main types of thin film are used:

i. Cadmium Telluride (CdTe)

CdTe is a semiconductor compound formed from cadmium and tellurium. CdTe solar panels are
manufactured on glass. They are the most common type of thin film solar panel on the market and the
most cost-effective to manufacture. Today, CdTe is not as efficient as crystalline silicon, but CdTe panels
perform significantly better in high temperatures due to a lower temperature coefficient.

ii. Amorphous Silicon

36 | P a g e
 India Solar PV Module Manufacturing Report
Amorphous silicon is the non-crystalline form of silicon and was the first thin film material to yield a
commercial product, first used in consumer items such as calculators. It can be deposited in thin layers
onto a variety of surfaces and offers lower costs than traditional crystalline silicon, though it is less
efficient at converting sunlight into electricity.

iii. Copper, Indium, Gallium, Selenide (CIGS)

CIGS is a compound semiconductor that can be deposited onto many different materials. CIGS has only
recently become available for small commercial applications.

The following table lists the comparison between various types of Solar cells namely thin film,
monocrystalline and polycrystalline solar cells used to make respective types of solar modules.

Table 26: Comparison between different PV technologies

Properties Thin-film Monocrystalline Polycrystalline

Construction

Efficiency

Appearance

Flexibility

Weight

Cost ($/watt)

Area (acres/MW)

Stability

Module Makers

2.2.2 Crystalline Module Making

2.2.2.1 Module Structure
A module is a group of cells connected electrically and packaged into a frame (more commonly known
as a solar panel), which can be grouped into larger solar arrays. Module manufacturing involves
putting together the cells onto glass or other substrates and connecting the cells to form an electric
circuit. This is the last manufacturing step before it is distributed to wholesalers.

The Module assembly forms the heart of the module manufacturing process. In this process, the
components are arranged together and fed into a laminator.

37 | P a g e
 India Solar PV Module Manufacturing Report

Figure 13: Solar Module Assembly

A typical solar module includes the following components:

1) A transparent top surface, usually glass

2) An encapsulant – usually thin sheets of ethyl vinyl acetate that hold together the top surface, solar cells,
and rear surface

3) A rear layer – a thin polymer sheet, typically Tedlar, that prevents the ingress of water and gases

4) A frame around the outer edge, typically aluminum

Figure 14: Components of a Solar Module

38 | P a g e
 India Solar PV Module Manufacturing Report
2.2.2.2 Assembly Process

The Module assembly forms the heart of the module manufacturing process. In this process, the
components are arranged together and fed into a laminator. The set of activities involved in the
assembly process include the following.

Testing & String

Preparation
Sorting Assembly

Framing and
Busing Lamination
Testing

Junction
Simulation
Box

Figure 15: Module Assembly Process

Figure 16: PV Module Production Process (Source: RISE Technology S.R.L)

2.3 PV Module Manufacturing Line

2.3.1 Module Line Classification

Depending on the level of automation in the PV module equipment, a PV module manufacturing line can
be classified into the following three categories:

1. Manual
2. Semi-automated
3. Fully automated

39 | P a g e
 India Solar PV Module Manufacturing Report
Table 27: Semi-automated versus fully-automated
Parameter Semi-Automated Fully-Automated
Degree of Automation Degree of automation is confined The facility is completely
predominantly to tabbers & automated
stringers, and laminators

2.3.2 Features of Module Lines

To understand some features of a typical module production line, take a look at the comparison table
below.

Table 28: Comparison of technical features of semi-automated module lines (sample data)
Parameters 20 MW line 60 MW line

2.3.3 Scope of Work of a Module Equipment Supplier

During the decision time, the equipment supplier who is entrusted the task of turnkey implementation
of the plant will analyze and design the project in close contact with the customer, listening to all
specific needs in order to optimize production flow of the photovoltaic modules.

The typical service package offered by equipment suppliers include:

2.3.4 Machines and Equipments

A fully functional and state-of-the art PV module production line (200 MW) has been illustrated below.

Figure 17: Components of a 200 MW Turnkey production line (Source: Jinchen Machinery)

40 | P a g e
 India Solar PV Module Manufacturing Report

The list of machines that would be comprised in such a large capacity, fully-automated solar module
manufacturing facility include:

1. Automatic Cell tester and sorter

2. Automatic loading Handler
3. EVA Automatic Cutting and Layup Machine
4. …

Here below, we have discussed the main equipment used with some details on their benefits and
features.

2.3.4.1 Auto Cell Tester and Sorter

The automatic cell tester and sorter machines performs a function and quality test on the photovoltaic
cells before commencing production of the modules, classifying them according to their electrical
characteristic (current, voltage and/or power etc.) avoiding defective cells in the production process.

Some cell tester and sorter machines are equipped with advanced vision system and solar simulators
which allow for precise measurement and checking of various electrical parameters.

The cells are usually sorted into batches following which the cells below quality are rejected. The
classification of cells into different quality levels according to their characteristics maximizes the overall
production yield, reducing mismatch losses.

A computer with user-friendly software adjusts the lamp intensity, controls the measurement process
and cell handling, and acquires cell performance data. The data, as a full I-V curve, allows sorting by a
variety of selectable criteria. The computer plots the I-V curve and displays a variety of cell
characteristics. Curves and data can be printed and stored on disk.

41 | P a g e
 India Solar PV Module Manufacturing Report

Figure 18: Cell Tester and Sorter (Source: Mondragon Assembly)

2.3.4.2 Auto Laser Scribing Machine

2.3.4.3 Glass Washer

2.3.4.4 Tabber & Stringer
2.3.4.5 Automatic Layup System

2.3.4.6 Automatic Laminator

2.3.4.7 Edge Trimming Station
2.3.4.8 Module Transfer/Module Conveyor Belts
2.3.4.9 Semi-automatic Framer
2.3.4.10 Automatic Framer
2.3.4.11 Sun Simulator
2.3.4.12 Lighting Table
2.3.4.13 EL tester
2.3.4.14 Hipot Inspection
2.3.4.15 Inspection & Cleaning

2.4 Conditions of Sale

1. Payment Terms
2. Delivery Time
3. Taxes and Duties
4. Warranty and after-sales service
5. Training

42 | P a g e
 India Solar PV Module Manufacturing Report
2.5 Testing and Certification of Modules
2.5.1 Global Certification Standards

The number of solar PV certifications is increasing and solar system installers are aware that certified solar
products are required for market. So it is important to understand and identify the solar certifications that
are crucial for solar modules that the company produces. Having the required certifications could mean a
competitive advantage in this market. It is also important to know the latest certification developments
regarding new solar products. For instance, installing solar panels near a coast line needs resistance to
salt mist corrosion (IEC 61701 certification). If a particular region is dealing with large amounts of snow
during winter, installing solar panels with an increased load capacity (5400Pa certification) would be a
better choice.

For solar products, it is necessary to get CE or NRTL mark.

2.5.2 List of Certifications Made Mandatory by the Indian Government

2.5.3 New Regulations by MNRE

The MNRE has decided to bring out technical regulation for Solar Photovoltaic Systems/ Devices/
Components/ Goods. Concurrently, the MNRE is in the process of bringing out a Lab Policy for Testing,

Under the draft regulation, the specified standards proposed for Indian PV modules has been tabulated
below.

Table 29: Specified Standards based on Draft Technical Regulations

Product Indian Standard Number Title of Indian Standard

43 | P a g e
 India Solar PV Module Manufacturing Report
2.6 Recent Technology Developments
A matter of concern while setting up a module line could be with regard to emergence of potential new
technologies. In a highly dynamic market like solar, constant up updation of new and emerging
technologies is essential and something to look out for.

1. Shift towards higher bus bar design

Bus bars connect solar cells to each other to create higher voltages and facilitate the flow of electrons. As
you increase the number of bus bars, more electrons are able to pass through, thereby increasing power
and efficiency. A one bus bar improvement can generate 5 more watts per panel.

Many panel makers worldwide have shifted from traditional 3 bus bar designs to 4 or 5 bus bar designs.
Companies such as Solar World have moved directly from 3- to 5- bus bar design to gain the competitive
edge.

2. …
3.
4.
5.
6.
7.
8.

44 | P a g e
 India Solar PV Module Manufacturing Report
3 Investment and Returns

The Big Picture

 The cost per MW for a module manufacturing line depends on the three factors – capacity of
module line, degree of automation and equipment supplier (Chinese or European). The per MW
cost for 50 MW facility from a European manufacturer ranges from …
 The cost of production of modules for a typical module line in India ranges from…

3.1 Capital Costs for a Turnkey Module Assembly Line

The low capital requirement for setting up a module manufacturing line has been a crucial reason why it
has been attractive in the Indian context. Moreover, compared to other parts of the PV value chain, the
payback period is quite low.

The cost components involved include

 Machines & equipments

 Other Infrastructure - land, building, storage, water infrastructure, bank processing fees,
certification fees, etc.

Table 30: Comparison of CAPEX based on different parameters

CAPEX

20 MW 50 MW 120 MW

Fully- Semi- Fully- Semi- Fully

Semi- Automat Automat Automat Automat Automat
Automated ed ed ed ed ed

Equipment Cost
Europe Other
an Infrastructure

Equipment Cost
Other
Chinese Infrastructure

3.2 Cost of Equipment

1. Sample Costs – European Manufacturer – 23 MW Semi-Automated Line

45 | P a g e
 India Solar PV Module Manufacturing Report
Table 31: Cost of Equipment for a Semi-automated facility (European Manufacturer)
%
Contribution
Name of Equipment INR (in Lakhs) of Total

2. Sample Quote – Chinese Manufacturer – 20 MW Semi-Automated Line

Table 32: Cost of Equipment for a 20 MW Semi-Automated Facility (Chinese Manufacturer)

3.3 Chinese versus European Equipments

Of late, European module equipment suppliers are facing increased competition from Chinese suppliers
of turnkey module lines.

It goes without saying that India is a price-sensitive market which means naturally there is a demand for
cheaper Chinese equipments. Nevertheless, the superior quality and safety standards offered by
European suppliers are still very attractive in the market.

Solar Mango has witnessed the following trends when it comes to equipment selection for module
manufacturing facilities.

3.4 Cost of Production

A very critical fact to be noted while implementing a solar module manufacturing facility is that the
initial capital cost contributes to only 1-2% of total cost of production. The other components that
occupy the total cost of production include:

46 | P a g e
 India Solar PV Module Manufacturing Report
 Raw Materials – cells, backsheet, EVA, glass, ribbon, J-box etc.
 Manpower – employee salaries, logistics
 Utility and water
 Other costs – tool maintenance, facility maintenance etc.

The running costs per watt-peak associated with the

Table 33: Cost of Production for a 50 MW Module Manufacturing Facility

OPEX

Semi-automated Fully Automated

INR/Wp US
INR/Wp US cents/Wp cents/Wp

Cells
Other Raw
Raw Materials Materials

Labor cost
Power &
Water cost

Other Costs –
Tool
Other Running Costs Maintenance,
logistics

*1 USD ≈ Rs. 66

3.5 Returns –Cash Flow, IRR, Payback Period

The return on investment depends on different factors and hence it is difficult to give a standard
number for returns (on any parameter). However, based on some of our calculations, we are providing
some ballpark numbers below. For the purpose of calculations, let us consider a 50 MW semi-
automated facility (European line).

3.5.1 Inputs
Capacity
Bank Rate
Corporate
Tax
Debt
Equity

47 | P a g e
 India Solar PV Module Manufacturing Report
Loan Term
Moratorium
3.5.2 Expenses

1) CAPEX

Rs. (Crores) $
(millions)
Equipment Cost
European Other
Infrastructure
Total

2) OPEX

Semi-automated

INR/Wp US cents/Wp

Cells
Other Raw
Raw Materials Materials

Labor cost
Power &
Water cost

Other Costs –
Tool
Other Running Costs Maintenance,
logistics

Total

3) Financing

Year 1 2 3 4 5 6 7 8 9 10
Financing Expenses

48 | P a g e
 India Solar PV Module Manufacturing Report
3.5.3 Revenue

Year 1 2 3 4 5 6 7 8 9 10
Capacity Utilization
Module production
Price (US cents/W)
Sales (US$ million)

3.5.4 Returns

The returns for a 50 MW semi-automated facility is provided below.

Equity IRR Project IRR DSCR

3.6 Government Incentives to Support Solar PV Manufacturing

The central government has come up a plan to support solar manufacturing in India through the Prayas
initiative which intends to expand manufacturing capacity in India to cater to the domestic as well as
export demand. This initiative is expected to augment interest in module manufacturing in India through
a $3.1 billion fund.

As of now, there are two direct incentives available for module manufacturing in India.

4 Risks and Mitigation

The Big Picture

 The critical risks faced by Indian module manufacturers comes from Chinese competition and
the uncertain regulatory environment. With the current Chinese module prices being the lowest-
ever, Indian module suppliers are highly dependent on government support mechanisms like
DCR, which has been repealed by the WTO and is under threat.

49 | P a g e
 India Solar PV Module Manufacturing Report
 The only sustainable mitigation strategies are well-thought out business models incorporating
differentiation and partnerships.

4.1 Introduction
Before making an investment decision in the solar PV modules segment, one has to thoroughly analyze
the risks involved in venturing into solar PV module production. A clear mitigation strategy should also be
put in place before committing on investments. Lenders like banks, VCs and PEs will also be extremely
keen on understanding the risks and mitigation strategies. In this section, the following risks are
analyzed and appropriate mitigation strategies suggested.

 Project completion risk

 Country and financial risks
 Operational risks
 Market risks

4.2 Project Completion Risk

Table 34: Project Completion Risks

Risk Description Mitigation

Time Overrun This refers to the various time delays

which directly or indirectly affect the
course of the entire project

I Shipment Delay A delay in shipment of the Set penalty clause with the
manufacturing equipment may pose a equipment supplier for delay in
severe time lag in setting up the entire shipment
module line and hence in turn may delay
the entire project

50 | P a g e
 India Solar PV Module Manufacturing Report

4.3 Country and Financial Risks

Table 35: Country and Financial Risks
Risk Description Mitigation

Country Risk This covers a range of economic and This is an external factor over
political risks including government which the promoters have no
stability, status and maturity of the control.
legal system, transparency of business
dealings and currency risks. It also
includes general instability due to wars,
famine and strikes.

1. 1.

4.4 Operational Risks

Table 36: Operational Risks

4.5 Market Risks

Table 37: Market Risks

51 | P a g e
 India Solar PV Module Manufacturing Report
5 Next Steps

The Big Picture

Whether you are a business planning on investing in a new module manufacturing facility or expanding
an existing facility, the two key areas to focus on include

 Identification of the right technology partner

 Financial Closure of the project

5.1 Introduction
Just like any other venture, setting up of a Solar PV module manufacturing involves a series of steps
covering various aspects like Technology vendor selection, Financial closure and project management till
the first the modules are produced. Many of the things can be done in parallel, many are done
sequentially. In this section, some of the key steps involved in the commissioning of the plant are
highlighted.

Once all the details about the solar PV module production are evaluated and a decision taken to invest in
the venture, the following steps need to be taken.

Figure 19: Next Steps

52 | P a g e
 India Solar PV Module Manufacturing Report
5.2 Preparation of Prefeasibility Study

Prefeasibility Report

Pre-feasibility studies are well researched yet generic due diligence reports that facilitate a first level
understanding of business feasibility for potential entrepreneurs in their investment decision making.
While detailed project reports (DPR) are required for external stakeholders (lenders such as banks, for
instance), prefeasibility reports are used for to assist internal stakeholders (e.g., board of directors) to
take corporate decisions.

A typical prefeasibility report on Solar PV provides details about the following:

 Potential of solar PV modules production in India

 An introduction to the various solar PV technology options
 Identifying the different players across the solar PV value chain
 Evaluation of the first level technical feasibility of the solar PV module production project
 Evaluation of the first level economic feasibility of the solar PV module production project

This study is only meant to apprise the investor of the business feasibility of the project and is not a
bankable study, i.e. this report cannot be submitted to financial institutions for availing loan, though it
can be used as a support document to the more detailed project report.

5.3 Preparation of Detailed Project Report

Preparation of detailed project report is further step in firming up the proposal of setting of solar PV power
plant. A Solar PV module detailed project report (DPR) will examine the following factors.

5.4 Technology Partner

Selection of equipment is one of the major decisions that a module assembly manufacturer needs to take.

Table 38: List of Turnkey PV Module Line Suppliers

Name of Company Region Website

European

Chinese

53 | P a g e
 India Solar PV Module Manufacturing Report
5.5 Selection of Equipment Supplier
In this section, Solar Mango provides pointers for assisting the client in decision-making with regard to
the selection of an equipment supplier.

Table 39: Parametric Analysis on Selection of Equipment Supplier

Module Capacity Target Segment Market Strategic
Equipment Positioning Intentions

Chinese semi-
automated

Chinese fully-
automated

European semi-
automated

European fully-
automated

Highlights & Recommendations

5.6 Selection of Raw Material Suppliers and Entering into

Memorandum of Understanding (MOU) with Them
Once the equipment line has been finalized, it is time to start negotiating with suppliers of raw materials.
This can be done immediately after finalizing the equipment or it can be more towards the expected
completion of the commissioning of the module assembly line. In many cases, the turnkey equipment line
providers also assist the project owner in getting into agreements with the raw material suppliers.

Table 40: Preferred Region for Sourcing of Raw Materials

Region Raw Material / Why they are preferred

Component

 
China


Europe 

54 | P a g e
 India Solar PV Module Manufacturing Report
o
India 

The list of raw material suppliers has been listed in the Annexures I – IX.

5.7 Achieving Financial Closure of the Project

Once the equipment line has been finalized and the complete detailed project report(DPR) ready, it has
to be presented to lenders or other investors. If a debt funding is envisaged, the DPR has to be presented
to the banks and it has to meet the requirements set by them. In case other private investors come in
with equity funding, the DPR should be presented to them as well and the entire business plan explained
to them to their satisfaction. As mentioned in earlier sections, if the project meets the expectations of the
investors, financial closure can be easily achieved.

5.8 Implementation of the Project

The financial closure of the project sets the stage for the operational implementation of the project. In
this case, the advance to the turnkey equipment provider can be given after the closure. Since it takes
about 4-6 months for the equipment provider to deliver the turnkey lines and set it up, many other works
can be completed in parallel during this period. For example, the following activities can be carried out
before the equipments arrive.

a. Securing all relevant approvals

I. Certificates from Pollution control board
II. Approvals as per the Factory Act
III. Labour certificates as relevant
b. Civil construction of the factory assembly line
c. Electrical connections from the state electricity departments
d. Compliance of other statutory requirements.

5.9 Module Testing and Certification

Module testing is critical since most of the solar PV projects world over are mandated to use only certified
modules. The details of the certification are given in section 2.5.

After the equipment arrives and the installation completed, trial runs have to be done. Based on the
successful completion of the trial certifications, the first set of PV modules can be produced and sent for
testing.

55 | P a g e
 India Solar PV Module Manufacturing Report
5.10 Contacting Government Officials
While the need for liaising with the central and state governments is relatively low for module
manufacturing compared to many other projects, it is always advisable to have good relationships with
the government. Given below is a list of the renewable energy agencies in different states.

Table 41: Renewable Energy Agencies & Contact Details

State Department Address & Contact Details

ANDHRA New & Renewable Energy Vice Chairman & Managing Director, Regd.Office:5-8-
PRADESH Development Corporation 207/2, Pisgah Complex,
of Andhra Pradesh Ltd. Nampally, Hyderabad - 500 001.
Tel. off: +91-40-2320 2391, Fax: 040-23201666
Email: info@nredcap.in

ARUNACHAL
PRADESH

5.11 Sales Partnerships

For new solar module makers in India, establishing key sales partnerships is critical in ensuring sustainable
sales of its modules and securing the stability of the module business. Solar Mango has identified the key
partnerships that module makers can form as

 Partnerships with solar EPCs

 Partnerships with solar developers

In this section, Solar Mango provides a template to assist the client in decision-making with regard to
establishing sales partnerships.

Partnerships with Solar EPCs

Table 42: Preferred End-user segments for EPCs of different sizes

End-user market EPC Size
segments
Small Small-Medium Medium Large

56 | P a g e
 India Solar PV Module Manufacturing Report

Partnerships with Solar Developers

Table 43: Developer Decision-making for Different End-user Segments

End-user market EPC Size
segments

Residential Rooftop

Small Commercial
Rooftop

Large Commercial
Rooftop

Industrial Rooftop

Small ground-
mounted (1-3 MW)

Large scale solar

farms (> 10 MW)

Recommendations

57 | P a g e
 India Solar PV Module Manufacturing Report
ANNEXURE-1
List of PV Module Manufacturers – India
Table 44: List of PV Module Manufacturers in India (Source: MNRE)
Installed Capacity in MW (As Operational Capacity in MW
Name of Company on 30-06-2016) (As on 30-06-2016)

Access Solar Limited 18 NA

Agrawal Solar 40 NA

Ajit Solar Pvt LTd 35 20

Alpex Exports Pvt Ltd 200 150

AMV Energy Systems Private NA

Limited 10

*NA – Information Not Available

List of PV Cell Manufacturers – India

Table 45: Installed Cell Capacity in India (Source: Solar Mango)
Installed Capacity Capacity Under Installation Announcements
Companies (MW) (MW)

*Not in Operation

58 | P a g e
 India Solar PV Module Manufacturing Report

List of PV Cell Manufacturers – Global

ANNEXURE-II

List of EVA/Back sheet/ Front sheet/ PET/ TPT/TPE/PVB & TCO

Manufacturers – Global

List of Major Solar PV Back Sheet Brands Imported in India

ANNEXURE-III

List of Manufacturers of Connectors– Global

ANNEXURE – IV
List of Ribbon Manufacturers – Global

ANNEXURE – V
List of Manufacturers of Cables – Global

ANNEXURE – VI
List of Frame Manufacturers – Global

ANNEXURE – VII
List of Glass Manufacturers – Global

ANNEXURE – VIII
List of Encapsulant Manufacturers – Global

59 | P a g e
 India Solar PV Module Manufacturing Report
ANNEXURE – IX
List of Junction Box Manufacturers – Global

ANNEXURE – X

List of Turnkey PV Module Line Suppliers

ANNEXURE – X1

Sample Quote - 1
Table 46: Sample Quote - Cost of Equipment for a 20 MW Semi-automated facility (Chinese
Manufacturer)

Sample Quote – 2
Table 47: Sample Quote - Cost of Equipment for a 50 MW fully-automated facility (Chinese
Manufacturer)

ANNEXURE – XII
Estimation of High Potential C&I sectors for Rooftop and Ground-
Mounted Solar

60 | P a g e