You are on page 1of 33

5MWp

/10MWp
Solar PV Module
Production Unit
Total Business Model
A complete analysis & assessment have been done which can be utilised as bankable DPR.
The whole process of setting up a solar PV Module Production Unit and the required
business model have discussed in detail. Also The Market Analysis, Financial aspects,
Marketing strategies can be found in this article.

amrit.mandal0191@gmail.com
info@ohmsolar.co.in

Acknowledgement
Right now solar PV market is booming thanks to our Govt. support
which is constantly coming up with new & attractive energy policies.
In india, a lot of new companies are starting as system integrator,
EPC service providers. But, compared to these service providers, the
number of Solar PV Panel producing companies is very few. So in this
paper, Ill discuss about the technology & financial aspect of setting
up a Solar PV Module production unit in detail. The reader can find
about the detailed overview of machineries involved, total
investment required, how to deploy the marketing team, details of
production team HR structure and benefits related to the products
and a layout to setup the production unit.
This paper/project report will be adequate to prepare a bankable
DPR also. The most important thing is how to do the marketing and
the related scope. Keeping this in mind, the report enlightens this
particular topic with more detail.

amrit.mandal0191@gmail.com

Table of Contents
Market Analysis....................................................................................................................................... 3
Solar PV Project Scenario .................................................................................................................... 3
Indian Market Overview ..................................................................................................................... 6
Technical Details Overview, Instruments, Raw Materials, Layout ....................................................... 8
Required Materials & their specification: ........................................................................................... 9
Technical Details of the Manufacturing Instruments ....................................................................... 11
Plant setup: ....................................................................................................................................... 19
Production Unit Layout/Floor Plan ............................................................................................... 19
Process Flow: .................................................................................................................................... 20
Financial Analysis Investment, Payback, Break Even & more. ........................................................ 21
Mode1 For 5MWp yearly PV Module Production Capacity............................................................ 21
Payback Analysis ........................................................................................................................... 22
Return of Investment Analysis ...................................................................................................... 23
Break Even Analysis....................................................................................................................... 24
Mode2 For 10MWp SPV Module Production Capacity .................................................................. 26
Investment & related: ................................................................................................................... 26
Cash Flow & Net Profit .................................................................................................................. 26
Investment Payback Analysis For 10MWp production unit .............................................. 27
ROI Analysis:.................................................................................................................................. 28
Break Even Analysis....................................................................................................................... 29
Marketing Strategies ............................................................................................................................. 31
About Me: ............................................................................................................................................. 32

amrit.mandal0191@gmail.com

Market Analysis
Solar PV Project Scenario
The charts presented below will give an overview of already commissioned/installed solar projects in
the major countries by 2014, March.

Installed Plants
400
350
300
250
200
150
100
50
0
United States

China

Germany

India

United
Kingdom

Spain

Italy

Installed Capacity
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0

Now, lets take the value from the chart about the India. According the presented chart, currently the number of
installed Solar Power Plants (cumulative) is 184 & the respective capacity is equals to 1975MWp. So, just for the
ease of understanding, lets consider these all power plants used 250Wp Poly-Si PV Panels which means the total
number of 250Wp PV panels used is equals to 7,900,000 or 7.9 millions number of 250Wp PV Panels.

Now, with same consideration, For China it is = 18,840,000 or 18.84 millions of 250Wp PV Panels
For United States, it is = 25,680,000 or 25.68 millions of 250Wp SPV Panels
And for the listed 7 countries in total, it is = 83,000,000 or 83 millions of 250Wp SPV Panels.

amrit.mandal0191@gmail.com

Now, lets see the up-coming or proposed or under development projects (June,2014 to
March,2015) in these same countries:

Nos of Proposed Plants


Spain

Italy

United
Kingdom
United States

India
Germany China

Nos of Proposed Capacity

United States
China
Germany
India
United Kingdom
Spain
Italy

So, Upcoming demand of Panels in India = 22.30 millions of 250Wp SPV Panels (19%)
Upcoming demand in China = 24.04 millions of 250Wp SPV Panels (20%)
Upcoming demand in United States = 56.72 millions of 250Wp SPV Panels (48%)
Total demand in those 7 countries = 118.17 millions of 250Wp SPV Panels (100%)

amrit.mandal0191@gmail.com

Lets have a look on the target set for 2020 by the leading countries in this Solar PV Energy Market:
60

50

40

30

20

10

0
China
Target in GW

USA

India

Germany

Italy

Installed Capacity as on dec, 2013 (GW)

United
Kingdom

Japan

Rest of the Target (GW)

So from the above chart we can estimate the upcoming demand of solar PV Panels in those
countries. The estimates are
Country
China
USA
India
Germany
Italy
United Kingdom
Japan

Project by 2020 (GW)


31.7
18
17.7
16.5
5.4
20.3
19.4

SPV module demand


by 2020* in millions)
126.8
72
70.8
66
21.6
81.2
77.6

*just like the previous calculation, here also the 250Wp Poly-Si PV Panels have been considered.

amrit.mandal0191@gmail.com

Indian Market Overview:


State Wise target under JNNSM scheme & other State Govt. Policies :
State
Target By the year
Proposed Allocations in 2014
Uttar Pradesh
Uttarakhand
Karnataka
Rajasthan
Punjab
Tamil Nadu
Chandigarh
Odisha
Madhya Pradesh

500MW by 2017
500MW by 2017
200MW by 2016
750MW by 2017
1000MW by 2022
3000MW by 2015
1000MW by 2017
135MW by 2015
800MW

300MW
50MW
50MW
None
300MW
None
100MW
20MW
100MW

Existing Solar PV Module Manufacturing Company


Company Name

Production Capacity
Per year (in MW)

Company Name

Production Capacity Per


year (in MW)

Access Solar
Ajit Solar
Ammini Solar
Amro Technology
Akshaya Solar
Alpex Solar
Aroma Renewable
Energy
Andromeda Energy
Technology
Cira Renewables
Deshmukh Solar
Divakar PV Solar
Ecosol Power
Electromac Solar
Empire Photovoltaic
EMMVEE Photovoltaic
Enfield Solar Energy
Evergreen Solar
Goldi Green
HHV Solar Technologies
ICOMM Tele Ltd
JJ PV Solar
KCP Solar Industry
KL Solar
Kohima Energy
Lubi Electronics
Kotak Urja
Lanco Solar
NEASE
Novergy Energy
Photonix Solar
PLG Power

15
20
1
2
6
60
2

Premier Solar
Rajratna ventures
Radiant Solar
Rashmi Industries
REIL
Sahaj Solar
Shan Solar

8
20
0.5
30
2.5
0.4
30

Shivam Solar

25

3
100
15
10
24
8
135
5
20
100
35
15
15
16
30
50
25
20
75
20
37
15
18

SLG Solar
Sun Energy System
Sun Solar Techno
Sungrace Energy
SVL
Synergy Electric
TES
Tapan Solar
TATA Power Solar
Titan Energy Systems
Topsun Energy
Trom Solar
UPV Solar
Vega solar
Vikram Solar
Vinova Energy
Vipul Enterprises
VJ Solar
Waaree Energies
Vorks Energy
XL Energy Systems
Websol Solar

5
18
2.5
10
140
35
5
20
100
110
70
1.2
12
14
48
1
50
5
250
3.5
15
25

amrit.mandal0191@gmail.com

Indian Market Analysis & Scope of New Production Unit


Total Production Capacity Per Year in Indian Market
Total Production by 2020 (considering yearly yield at
fixed value)
Demand in Indian market by 2020
Extra Production Capacity required per year

2GW (around)
14GW
17.7GW
620MW

Global Market Analysis & Scope of New Production Unit


Considering the Global Market, demand per year
Installed production unit all around the world
Excess Solar PV demand per year around the world

26GW
16.7GW
9.3GW

Benefits for Indian PV Module Production Company:


 Large scale projects are going on or proposed to be executed very soon in India
 Residential/ domestic applications have increased by nearly 40% by 2013
 A big opportunity to export solar PV Module to global market
 The countries which are now in 1st phase of Solar energy implementation, preferring Indian
companies more
 Small scale projects like solar irrigation, rooftop solutions, micro & mini grids etc. are in
their peak demand now and will increase more in the coming years
 Indian Govt. recently announces some great policies and relaxation in tax duties which is a
very good indication for high profit may be attended by exporting solar PV Panels to global
market

**Though the current cumulative capacity of India is 2GW which the highest capacity can be achieved, many of these
production/assembly units work as OEM or subsidiary type.
For an example, suppose there is a company XYZ in India with production capacity 100MW/year and there is another
production company ABC with a production capacity n MW/year where n may be less or greater than 100. It may
happen that at any time ABC company get an order larger than there current production capacity nMW/year or
(n/12)MW/month. Then ABC would approach to XYZ and give them a portion of ABCs work order where the panels will
be manufactured at XYZs factory under the name plate & brand name of ABCs.
So, the point is that the actual manufacturing or production capacity is always 60-70% of the highest (which is 2GW for
India)

amrit.mandal0191@gmail.com

Technical Details Overview, Instruments, Raw Materials, Layout


Overview:
This document will discuss about the mainly 5MWp & 10MWp Panel Production line with an
option of turning it into 10MWp & 20MWp yearly production capacity.
The technical discussion will consist of instrument details, materials & components to produce
the Solar PV Modules, operational details, floor plan and the basic process flow of the production
line.

amrit.mandal0191@gmail.com

Required Materials & their specification:


For 250Wp Modules (as an example)
Materials

Specification

Remarks

Solar Cell:

Importance:

Conversion efficiency: >16%


Rated Power: 4.08Wp
Imp: 7.94A
Isc: 8.41A
Vmp: 0.519V
Voc: 0.62V
Dimension: 156x156mm2 (LxW), T= 0.2mm
Power Co-Efficient: 0.405 0.05%/0C

Ethylene Vinyl Acetate (EVA) Film:


Thickness: 0.45-0.625mm
Tensile: 8.5MPa
Elongation: 800%
Dielectric Strength: 49.9KV/mm
Refractive index: 1.49
Surface resistivity: 8.1x1012 ohms

The key component, the


main and most important
basic building block of
Solar PV Module & Panels

Used For:
High Stability against
Damp heat
High light transmission
Optimizing the bond
strength with bond glass
and backsheet.
Highest protection &
encapsulation against UV
and weathering.

Solar Glass:

Importance of Solar glass:

Dimension (max): 2134mmx2134mm or


3000mmx1830mm
Thickness: 3.2mm
Solar Energy Transmittance: 91%, 300~2500nm
wavelength range

Protection from
Weathering & outside
objects
A wide spectrum of light
for solar cells to operate
Stability against UV
Used For:
To create the PV busbar
over the solar cells
To connect the cells in
electrically series-parallel
connection

Soldering ribbon:
Type1 PV Busbar ribbon (3mmx0.2mm; WxT)
Type2 Interconnect ribbon (1x0.08 mm2;WxT)
Conductor Material: ETP/DIP/OFC form
Tensile strength: 250N/mm2
Elongation: 20%
Camber: 0.5% (5mm on 1m length)

Thermo Plastic Elastomer (TPE) Back sheet:


Construction type: PVF/PET/PE
Thickness: 0.25mm
Length: 100 meters per roll; width: 1.2m max
Peel Strength PET/PVF: 6N/10mm
Peel Strength PE/PET: 10.5N/10mm
Peel Strength PET/EVA: Destruct
Dielectric Strength: 15.55KV
Moisture Permeability: 3.1g/m2/day
Partial Discharge: 1000VDC

amrit.mandal0191@gmail.com

Importance of TPE backsheet:


Improved module eff.
High gloss surface to
increase solar reflectance
Easily cleanable
Higher stability under
damp heat & freze thaw
conditions.
Very strong tear-bond to
EVA
Chemically resistant

Module Frame:
Dimension: 1638x982x40mm (LxWxH); 50mm
end-end gap in L & W.
Material: Anodized Aluminium Alloy

Junction Box:

Used For:
To give a structural solid
usable shape to solar PV
module & to create a
Solar PV Panel

Importance:

Protection class: IP67/IP65


Bypass Diodes: 3 diodes

Cable (Optional):
2

Thickness: 4mm
Length: 1000mm (650mm optional)
Voltage range: 1.5KV DC/(1.2/1.0)KV AC
Max Voltage tolerance: 6.5KV for 5mins
Operating temperature range: (-400 to 1200C)
Safe pulling force: 50N/m2

MC4 connector
Type: Male-female coupler interlocking (snapin)
Protection class: IP65 (as per NEC - 2011)
Rated current max: 30A
System Voltage Max: 1000V
Operating temperature range: (-400 to 1200C)

Sealant:
Consistency: Paste
Polymer: 100% Silicone
Hardness: 30
Peel Strength: >35 pil
Movement capability: 25%
Operating temperature range: (-480 to 1200 C)

To complete the
electrical circuit of solar
cells & make it ready to
use as power generation
module
To maintain the electrical
safety

Used For:
To connect to other PV
modules in the
string/array

Importance:
To connect to next
Module
To complete the string
To connect to
inverter/charger device
To maintain the electrical
safety in the system

Used For:
To seal the
envelope/frame
To fix the JB on the back
side of Panel
To make the Panel
weather proof

As far now, I hope that readers will get a clear idea about the basic components required to make a
solar PV Module. Next, Ill present the technical details of the equipment required to
Assemble/Manufacture a Solar PV Module. Ill show you the details & the related mechanism of
Machines/equipment used in 5MWp & 10MWp yearly production capacity based units and how to
double the production capacity when required.
So, please proceed to next part of this document.

amrit.mandal0191@gmail.com

10

Technical Details of the Manufacturing Instruments

Automatic Solar PV Module Laminator


Image source: www.reoo.net

Dimension
Laminating Area (WxLxH)
Control mode
Control System
Laminating time
Heating Mode
Temperature Control
Temperature Uniformity
Temperature control accuracy
Temperature control range
Pumping Rate
Heating rate
Vacuum rate
Silicone sheet size
Lid Opening
Production capacity

2.2x3.6m2
2200mm x 3600mm x 25mm
Manual / Automatic
PLC (); HIMS: Touch Screen ()
2-4 minutes (excluding solidification time)
Oil heating with flow pressure 0.28~0.32MPa
PID based
1.50C
1.00C
300C - 1800C
70 Lps
1350C at room temp. with 50-60 minutes
200Lps
3800mm x 2400mm, 5mm thickness
Straight from hydraulic (200mm max height)

(this equipment is for laminate solar glass, EVA, Solar cell & backsheet)

Mode-1 (Single shift; 8hours a


day)
Mode-2 (Double shift; 16hours a
day)
Comp. air pressure required
Total Power Consumption
(Rated/Actual)
amrit.mandal0191@gmail.com

250Wp x 3pieces/time x 3times/hour x 8 hours


x 300 days = 5.4MWp/year
250Wp x 3pieces/time x 3times/hour x 16
hours x 300 days = 10.8MWp/year
0.6 1.0 MPa
75KW/38KW (3-ph, 5line; 50Hz)

11

Solar Cell Tester :


Required to sort solar cells according to their electrical performance under a test condition of
simulated sunlight (variable irradiation value e.g. 100W/cm2 , 80W/cm2, 120W/cm2).

Testing Area/range
Illumination uniformity
Single flash time
Test period
Testing Parameters
Power Supply

200x200mm/ 0.1 5Wp


3%
10ms
3 second for each cell
Isc, Voc, Pmax, Vmp, Imp, FF, EFF, Temp, Rs,
Rsh
1KW, 230V, 50Hz (1-ph)

Solar PV Module Tester:


To measure I-V characteristics and other electrical parameters of poly & mono crystalline PV
Modules

Effective test area/test range


Uniformity of test result
Single Flash time
Testing Parameters
Power Supply

amrit.mandal0191@gmail.com

2000 x 1100 mm/ 5W to 300W


3%
10ms
Isc, Voc, Pmax, Vmp, Imp, FF, EFF, Temp, Rs,
Rsh
3KW, 230V, 50Hz (1-ph)

12

Electro-Luminance (EL) Tester:


Required to inspect the solar PV Module for secluded split, cracked cell, rosin joint, wire break &
defects

Module testing capacity


Maximum current
Maximum Voltage
Inspecting camera resolution
Time of exposure
Required temperature
Permissible Humidity
Power

2100mm x 1200mm
10A
60V
14000x1040 pixel
0.1 25.5 seconds (Adjustable)
100C - 300C
20 70%
2KW, 230V (running condition)

Glass Washing Machine:


Using to dry Solar PV Glass automatically & efficiently to improve the Solar Panels quality

Max permissible width of glass


Minimum length of glass
Applicable thickness of glass
Number of brushes
Air Knife
Frequency converter
Air blower rating
Water pump power rating
Working Speed
Actual power consume

amrit.mandal0191@gmail.com

1200mm
200mm
1.8 8mm
2 pairs
2 tricks
Delta VFD
2x11KW
2x0.75KW, 0.55KW
2m/min
10KW (running condition)

13

Framing Machine:
Required to fix solar Module frame and seal the 4 corner of the frame

Maximum Module dimension


Difference of diagonal line difference
Power Supply

2000mm x 1100mm
1.5mm
Single Phase

EVA, TPE back sheet cutting station:


This is actually a table with a tough top for
cutting EVA & TPT back sheet for solar panels

Working table dimension

220 x 1100mm

Solar cell Soldering station:


The soldering station includes operating platform with power distribution board, heating platform
and its control system. Soldering template for both single cell soldering and string soldering.

2 set Single soldering heating plate and


controller.
1 set String soldering heating plate and
controller.
1 pcs String soldering model plate 125 x 125
.
1 pcs String soldering model plate 156 x 156,
2 bar lines.
1 pcs String soldering model plate 156 x 156,
3 bar lines.
3 pcs Intelligent lead free electrical iron.
3 pcs working chair.
amrit.mandal0191@gmail.com

14

Operating platform dimension

1800 x 1200 mm

Electric Iron:
Heating by high frequency vortex, special sensor can accurately rapid control iron the soldering
temperature.

Dimension(WxLxT)
Operating temperature of iron
Temperature stability
Dormant time

96mm x 135mm x 160mm


1000C 5000C
20C
0~99min

Soldering ribbon cutting machine:


The machine can level the ribbon, which in term
can improve the quality of soldering.

Module transfer Carrier:


Hand truck for transportation of Glass / Modules
/ Panel at different stage of production

Ready Material Carrier:


Hand truck for transporting the finished laying
up module to be laminated, carry 10 pcs 300W
solar panel with proper protection.

amrit.mandal0191@gmail.com

15

Laying up station:
Provide horizontal surface to lay up the solar cell
string, Stack solar cell string, tempered glass,
EVA & back sheet and wire the solar cell string
with ribbon.

Visual Inspection Station:


For inspection of the finished lay up solar
module before laminating

Edge Trimming Table:


Table for trimming the EVA & TPT around the
panel after lamination. Support 300w panel,
Include the electrical knife.

Cleaning table:
Table for cleaning the surface of the finished
module.
Dimension: 1200X800X800mm,
Support 300w panel

Cell sorting Station:


Working table for select out solar
cells from the faulty one. And
classification the solar cell for solar
production.
Dimension :1200X1200X800mm

amrit.mandal0191@gmail.com

16

Lacer Dicer:
The small solar module need
made by small solar cell. such as
the solar module under 50W

Compressor:
Used to generate compressed air for laminator,
Framing machine, Solar cell tester and other
pneumatic equipments
Total power: 7.5 KW, 380V/50Hz, or according
customers need.
Capacity: 1.2CBM /s
Pressure: 1 Mpa

amrit.mandal0191@gmail.com

17

amrit.mandal0191@gmail.com

18

Plant setup:
Total Space required
Power Source
Air conditioning
Compressed air source
Environment
Water supply
Condition of Stock room

935m2
3-ph 5 line 50KW for 5MWp & 100KW for 10MWp yearly
production capacity
Should be maintained at 250C until the lamination process
Max 1.2MPa
Dust-proof, enclosed
To a small extent
Ambient temp at 250C with controlled humidity

Production Unit Layout/Floor Plan


Module tester

Laminator
Interconnection

Stringer
Layup station
Cell testing
Glass washing

amrit.mandal0191@gmail.com

19

Process Flow:

amrit.mandal0191@gmail.com

20

Financial Analysis Investment, Payback, Break Even & more.


Before We Proceed:
Before we get into more further of financial analysis, we need to keep some points in consideration:
1. To setup this production unit of 5MWp (/10MWp) yearly capacity, the initial investment or the
setup cost is 115,000USD (69Lakhs INR)* as per the Indian & Asian market.
2. The major turnkey solution providers of this production line are from China, Italy, German, India
& USA
3. Using the described production line above, one can produce Poly-crystalline & Mono-crystalline
solar PV Panels ranging from 1Wp to 300Wp.
4. This part of the discussion will be divided into 2 parts namely Mode1 (for yearly 5MWp capacity)
and Mode2 (for yearly 10MWp capacity).

Mode1 For 5MWp yearly PV Module Production Capacity


Investment & related:
Initial Investment

115,000USD

Yearly Production Capacity

5MWp SPV Modules (single shift, 8hrs/day)

Number of shifts

Single shifts, 8 hours/day, 300 working days/year

Production Unit staffs

9 (7 technicians + +1 supervisor + 1 Production Engineer)

Marketing & Sales team staffs

14 (12 Mktg Executives + 1 Re. Manager + 1 GM)

After Sales team staffs

Admin + Office staffs

4 (1 admin + 1 accountant + 1 CCE +1 HR Exc.)

Yearly utility bill + expenses

15,350USD

Office & plant space rental

1,000USD

Cash Flow & Net Profit


Yearly Production
Cost of raw materials
Finishing into saleable product cost
Average sale price
Yearly expenses in Staffing & HR
Yearly expenses Utility, rental & others
Yearly Production cost

5MWp SPV Modules

Yearly average sales (of 5MWp)

3,200,000USD

amrit.mandal0191@gmail.com

0.35USD/Wp
0.08USD/Wp
0.64USD/Wp
77,000USD
18,000USD
2,150,000USD

21

Now, as a business model, when One is going to start the business of Solar PV Module
Production/manufacturing & marketing, then the actual investment at the beginning is required :
22,12,000USD (for the very first year)
*This investment amount is based on the 10 different solution providing companies from different
countries.

Payback Analysis
Year:

$30,40,000

$28,88,000

$28,01,360

$27,70,545

$27,70,545

Relevant benefits:
Incremental Value of New Business

$32,00,000

$27,70,545

Relevant controllable costs:


Executive Salaries & Bonus
Direct Labor Costs
Materials Costs

$77,000

$82,390

$88,157

$94,328

$97,158

$98,130

$99,111

$4,00,000

$4,12,000

$4,24,360

$4,37,091

$4,50,204

$4,63,710

$4,77,621
$13,69,826

$17,50,000

$16,80,000

$16,12,800

$15,48,288

$14,86,356

$14,26,902

Advertising

$5,000

$5,000

$3,000

$3,600

$4,320

$5,184

$6,221

New Recruitment process

$2,000

$4,000

$5,200

$6,760

$8,788

$11,424

$14,852

Market research expenses

$25,000

$25,250

$25,503

$25,758

$26,015

$26,275

$26,538

$0

$5,000

$5,000

$5,000

$5,000

$6,000

$6,000

$18,000

$19,800

$19,800

$21,780

$21,780

$23,958

$23,958

Total costs

$22,77,000

$22,33,440

$21,83,820

$21,42,605

$20,99,621

$20,61,583

$20,24,127

EBITDA

Incremental maintenance
Other Costs

$9,23,000

$8,06,560

$7,04,180

$6,58,755

$6,70,924

$7,08,962

$7,46,418

Less: Depreciation

$2,21,200

$2,21,200

$2,21,200

$2,21,200

$2,21,200

$2,21,200

$2,21,200

Income before taxes

$7,01,800

$5,85,360

$4,82,980

$4,37,555

$4,49,724

$4,87,762

$5,25,218

Less: Taxes

$49,126

$40,975

$33,809

$30,629

$31,481

$34,143

$36,765

$6,52,674

$5,44,385

$4,49,172

$4,06,926

$4,18,243

$4,53,618

$4,88,453

Plus: Depreciation

$2,21,200

$2,21,200

$2,21,200

$2,21,200

$2,21,200

$2,21,200

$2,21,200

Minus: Investment

$22,12,000

$0

$0

$0

$0

$0

$0

Net Cash Flow

($13,38,126)

$7,65,585

$6,70,372

$6,28,126

$6,39,443

$6,74,818

$7,09,653

Cumulative Net Cash Flow

($13,38,126)

($5,72,541)

$97,830

$7,25,957

$13,65,400

$20,40,218

$27,49,872

Undiscounted payback period:

2.75 Years

Discount Rate

10%

Discounted Cash Flow

($12,16,478)

$6,32,715

$5,03,660

$4,29,019

$3,97,044

$3,80,917

$3,64,164

Cumulative Discounted Cash Flow

($12,16,478)

($5,83,763)

($80,103)

$3,48,915

$7,45,959

$11,26,877

($12,16,478)

Net income

Discounted payback period:

amrit.mandal0191@gmail.com

3.04

Years

22

Return of Investment Analysis


Total
Expenditure

Year
0
1
2
3
4
5
6

$22,44,000
$21,98,130
$21,46,038
$21,02,178
$20,57,982
$20,19,528

Cumulative
Expenses
22,44,000
44,42,130
65,88,168
86,90,346
1,07,48,328
1,27,67,856
1,27,67,856

Sales
$32,00,000
$30,40,000
$28,88,000
$28,01,360
$27,70,545
$27,70,545

1,27,67,856

Comulative
Sales
32,00,000
62,40,000
91,28,000
1,19,29,360
1,46,99,905
1,74,70,450
1,74,70,450

1,74,70,450

ROI:

36.8%

$35,00,000.00
$30,00,000.00
$25,00,000.00
$20,00,000.00
$15,00,000.00
$10,00,000.00
$5,00,000.00
$Year1

Year2

Year3

Total Expenses

amrit.mandal0191@gmail.com

Year4

Year5

Year6

Targeted Sales

23

Break Even Analysis


Breakeven Point (units):

437

Sales volume analysis:


Sales volume
per
month(units)

167

333

500

667

834

1,000

1,167

1,334

1,500

1,667

175

175

175

175

175

175

175

175

175

175

175

20,750

20,750

20,750

20,750

20,750

20,750

20,750

20,750

20,750

20,750

20,750

0.00

21,254

42,508

63,762

85,017

1,06,271

1,27,525

1,48,779

1,70,034

1,91,288

2,12,542

Total costs

20,750

42,004

63,258

84,512

1,05,767

1,27,021

1,48,275

1,69,529

1,90,784

2,12,038

2,33,292

Total sales

0.00

29,172

58,345

87,517

1,16,690

1,45,862

1,75,035

2,04,207

2,33,380

2,62,552

2,91,725

20,750

12,831

-4,913

3,004

10,923

18,841

26,759

34,677

42,596

50,514

58,432

Sales price per


unit
Fixed
costs/month
Variable costs

Net profit (loss)

Unit Contribution Margin

Unit
contribution
margin
27%
Variable costs
per unit
73%

Variable Costs Per Unit


Supplies per unit
10%
Shipping per unit
0%
Direct material
per unit
16%

amrit.mandal0191@gmail.com

Other
variable
costs per
unit
6%

Commissio
n per unit
68%

24

Break Even Analysis Chart


3,50,000.00
3,00,000.00
2,50,000.00
2,00,000.00
1,50,000.00
1,00,000.00
50,000.00
0.00
1

10

11

(50,000.00)

Fixed costs per period

amrit.mandal0191@gmail.com

Total costs

Total sales

Net profit (loss)

25

Mode2 For 10MWp SPV Module Production Capacity

Investment & related:


Initial Investment

115,000USD

Yearly Production Capacity

10MWp SPV Modules

Number of shifts

Double shifts, 16 hours/day, 300 working days/year

Production Unit staffs

18 (14 technicians + +2 supervisor + 2 Production Engineer)

Marketing & Sales team staffs

22 (18 Mktg Executives + 3 Re. Manager + 1 GM)

After Sales team staffs

Admin + Office staffs

4 (1 admin + 1 accountant + 1 CCE +1 HR Exc.)

Yearly utility bill + expenses

29,600USD

Office & plant space rental

1,300USD

Cash Flow & Net Profit


Yearly Production

10MWp SPV Modules

Cost of raw materials

0.35USD/Wp

Finishing into saleable product cost

0.08USD/Wp

Average sale price

0.64USD/Wp

Yearly expenses in Staffing & HR

120,000USD

Yearly expenses Utility, rental & others

39,000USD

Yearly Production cost

4,300,000USD

Yearly average sales (of 5MWp)

6,700,000USD

amrit.mandal0191@gmail.com

26

Investment Payback Analysis For 10MWp production unit


Year:

$67,00,000

$65,66,000

$64,34,680

$63,05,986

$61,79,867

$60,56,269

$59,35,144

Executive Salaries & Bonus

$1,17,000

$1,25,190

$1,33,953

$1,43,330

$1,47,630

$1,49,106

$1,50,597

Direct Labor Costs

$8,00,000

$8,24,000

$8,48,720

$8,74,182

$9,00,407

$9,27,419

$9,55,242

Materials Costs

$35,00,000

$33,60,000

$32,25,600

$30,96,576

$29,72,713

$28,53,804

$27,39,652

Advertising

$5,000

$5,000

$3,000

$3,600

$4,320

$5,184

$6,221

New recruitment process

$3,200

$4,000

$5,200

$6,760

$8,788

$11,424

$14,852

Market research expenses

$25,000

$25,250

$25,503

$25,758

$26,015

$26,275

$26,538

Incremental maintenance

$0

$5,000

$5,000

$5,000

$5,000

$6,000

$6,000

Other Costs

$23,000

$25,300

$19,800

$21,780

$21,780

$23,958

$23,958

Total costs

$44,73,200

$43,73,740

$42,66,776

$41,76,985

$40,86,653

$40,03,172

$39,23,060

EBITDA

$22,26,800

$21,92,260

$21,67,904

$21,29,001

$20,93,214

$20,53,098

$20,12,084

Less: Depreciation

$2,21,200

$2,21,200

$2,21,200

$2,21,200

$2,21,200

$2,21,200

$2,21,200

Income before taxes

$20,05,600

$19,71,060

$19,46,704

$19,07,801

$18,72,014

$18,31,898

$17,90,884

Less: Taxes

$1,40,392

$1,37,974

$1,36,269

$1,33,546

$1,31,041

$1,28,233

$1,25,362

Net income

$18,65,208

$18,33,086

$18,10,435

$17,74,255

$17,40,973

$17,03,665

$16,65,522

Plus: Depreciation

$2,21,200

$2,21,200

$2,21,200

$2,21,200

$2,21,200

$2,21,200

$2,21,200

Minus: Investment

$22,12,000

$0

$0

$0

$0

$0

$0

Net Cash Flow

($1,25,592)

$20,54,286

$20,31,635

$19,95,455

$19,62,173

$19,24,865

$18,86,722

Cumulative Net Cash Flow

($1,25,592)

$19,28,694

$39,60,329

$59,55,784

$79,17,957

$98,42,821

$1,17,29,544

Relevant benefits:
Incremental Value of New Business

Relevant controllable costs:

Undiscounted payback period:

2.75 Years

Discount Rate

10%

Discounted Cash Flow

($1,14,175)

$16,97,757

$15,26,397

$13,62,923

$12,18,355

$10,86,536

$9,68,187

Cumulative Discounted Cash Flow

($12,16,478)

($5,83,763)

($80,103)

$3,48,915

$7,45,959

$11,26,877

$77,45,980

Discounted payback period:

3.04 Years

amrit.mandal0191@gmail.com

27

ROI Analysis:
Year

Costs

0
1
2
3
4
5
6

$
$
$
$
$
$
$

Cumulative
Costs
44,73,200
88,46,940
1,31,19,216
1,73,02,251
2,13,94,954
2,54,04,781
2,93,34,495

44,73,200
43,73,740
42,72,276
41,83,035
40,92,703
40,09,827
39,29,715
2,93,34,495

Benefits
$67,00,000
$65,66,000
$64,34,680
$63,05,986
$61,79,867
$60,56,269
$59,35,144

Cumulative
Benefits
67,00,000
1,32,66,000
1,97,00,680
2,60,06,666
3,21,86,533
3,82,42,802
4,41,77,946

4,41,77,946

ROI:

50.6%

70,00,000
60,00,000
50,00,000
40,00,000
30,00,000
20,00,000
10,00,000
0
Year0

Year1

Year2
Total Expenses

amrit.mandal0191@gmail.com

Year3

Year4

Year5

Year6

Targeted Sales

28

Break Even Analysis


Breakeven Point (units):

687

Sales volume analysis:


Sales volume per
period (units)

333

667

1,00
0

1,33
4

1,66
7

2,00
0

2,33
4

2,66
7

3,00
1

3,33
4

Sales price per


unit

175

175

175

175

175

175

175

175

175

175

175

Fixed costs per


period

32,6
50

32,6
50

32,6
50

32,6
50

32,6
50

32,6
50

32,6
50

32,6
50

32,6
50

32,6
50

32,6
50

Variable costs

0.00

42,5
08

85,0
17

1,27,
525

1,70,
034

2,12,
542

2,55,
051

2,97,
559

3,40,
068

3,82,
576

4,25,
085

Total costs

32,6
50

75,1
58

1,17,
667

1,60,
175

2,02,
684

2,45,
192

2,87,
701

3,30,
209

3,72,
718

4,15,
226

4,57,
735

0.00
32,6
50

58,3
45
16,8
13

1,16,
690

1,75,
035

2,33,
380

2,91,
725

3,50,
070

4,08,
415

4,66,
760

5,25,
105

5,83,
450

-977

14,8
59

30,6
96

46,5
32

62,3
69

78,2
05

94,0
42

1,09,
878

1,25,
715

Total sales

Net profit (loss)

Unit Contribution Margin

27%

Variable costs per unit


Unit contribution margin

73%

amrit.mandal0191@gmail.com

29

Variable Costs Per Unit

$7.50 , 6%
$12.50 , 10%
$0.00, 0%

Commission per unit


Direct material per unit

$20.00,
16%

Shipping per unit

$87.50, 68%

Supplies per unit


Other variable costs per unit

Breakeven Analysis Chart


7,00,000.00

6,00,000.00

5,00,000.00

4,00,000.00
Dollars

Fixed costs per


period

3,00,000.00

Total costs

2,00,000.00

1,00,000.00

0.00
1

10

11

(1,00,000.00)
Sales Volume (Units)

amrit.mandal0191@gmail.com

30

Marketing Strategies

And Your Market is Global:

amrit.mandal0191@gmail.com

31

About Me:
Hello! Myself Amrit Mandal, Executive Director (Technical) of OhmSolar & Technologies. In my
professional career, till now I have consulted & executed quite a number of MW scale Solar PV
projects in India and abroad.

As a company we provide:
 Total Project consultancy for Solar Projects (Single window Solution)
 Sourcing Management services to Solar companies - for both the developer & PV
manufacturers
 Pre-feasibility studies of PV projects
 Market research for PV projects, production units and upcoming & existing PV
companies
 Owners engineering services for PV production line & projects
 O&M services for Large scale PV Projects

We operate from West Bengal, India & provide services related to solar PV through the world.
For any queries Contact us: info@ohmsolar.co.in
Please feel free to contact me to clear any doubt regarding Solar work at my personal e-mail id:
amrit.mandal0191@gmail.com

Personal Profile

Company Page

Amrit Mandal LinkedIn

OS&T LinkedIn

Amrit Mandal - Facebook

OS&T Facebook

Amrit Mandal Google+

OS&T - GoogleDrive

amrit.mandal0191@gmail.com

32