SOLAR

CELL MANUFACTURING AND DISTRIBUTION

OVERVIEW OF POSSIBLE STRATEGIES LEVERAGING POLAND AS A BASE FOR EXPORT



DEVIN M. LOWE
MARYVILLE UNIVERSITY

Solar Cells: Poland | Devin M. Lowe

EXECUTIVE SUMMARY
This paper will investigate the production of ground-based consumer-grade solar cells in Poland, which has seen
increased FDI and exports in high-technology as of recent. Given the increased interest in Polish tech production, I
believe that there must be a solid rational for using this nation as both a strategic entrance into European Union
markets but also as a means of hiring more affordable skilled labor (in comparison to the United States costs of
labor). The Dell corporation has notably moved much of its European manufacturing from Ireland (which has of
recent been an advantageous region for foreign investors to do business in) to Poland.
Solar Panels do not easily recoup purchasing costs for consumers (averaging 15 years of usage before they have
paid for themselves depending on the implementation), but they do benefit from a certain economy of scale
whereas even though research, development, and production costs individually are quite substantial. These costs
can be diminished through a more sizable production run and potentially through shared infrastructure (perhaps
instead of encouraging an individual consumer to power their own property, create a system that is cooperatively
shared throughout an entire development. Per user, the costs of implementation are lowered and the system
becomes advantageously more efficient at harvesting solar power.) The Basic premise of this operation will be to
design, build, and set up a distribution center in Poland before disseminating materials globally particularly to the
United States where there is a budding market for alternative power, specifically on the West Coast.

THE LOW-CARBON ENERGY FUTURE

The demand for energy in any form is at an all time high. According to data gathered by energy giant BP, the global
consumption of energy has nearly tripled since the 1970s Panels (British Petroleum, 2015) (See: Appendix A)
which clearly indicates that there is high demand for energy production in general, and on an even more poignant
note the demand is still increasing . As a matter of practicality and responsibility it should also be noted that 85%
of the global consumption of energy produces significant quantities of carbon-dioxide in its emissions which is a
major contributor to manmade climate change. There are many reasons for which mankind utilizes energy besides
for electricity (which only accounts for a third of total energy consumption (Cambridge University, 2012)), there is

Solar Cells: Poland | Devin M. Lowe

also the sourcing and production of raw materials, transportation, and even passive energy needs such as the
heating of water or air through conductive methods (British Petroleum, 2015).
As energy needs increase there will become an increasing necessity for civilizations to become more conscious of
the way in which we utilize and source our energy. It is apparent that we will need to either reduce our reliance on
carbon fuels, or figure out more efficient ways of harvesting energy through low-carbon methodologies. As a
matter of conservation it should be noted that the long term supply for carbon fuels is considerably lower than the
long-term demand which is problematic for the obvious reasons. There are two apparent methodologies for
confronting the inevitable energy crisis, the first being through augmenting the efficiency of the supply through
improvements on technology and policy, the second being a fundamental behavioral change whereas humanity
agrees to simply consume less energy ideally both methods could be balanced to incite even better energy usage
efficiencies.

SOLAR ENERGY AND PHOTO-VOLTAIC CELLS

Solar Energy represents growing, though yet small, industry of energy technologies that promises clean emissions,
low costs, and expandability. Generally speaking, Solar energy itself is any energy that we can harvest from the sun
that is then converted into either heat or electricity. There are currently three primary types of solar technology
for such conversions Passive, Active, and Photo-Voltaic (the latter being the focus of this paper). Passive systems
are simple, and store solar energy without the use of any other sources of energy they are reliable, robust, and a
closed system (however lack the general capability of creating the volume of energy necessary to offset the cost
efficiencies of carbon-fuels). Active systems collect and store energy using energy additive processes that augment
the efficiency of the system. Both Active and passive systems create energy through trapping heat behind glass
and storing the energy in a medium (typically air or water). Photo-Voltaic systems (PV hereafter), convert solar
radiation into DC (direct current) electricity through arrays of photocells. In practice, each photocell acts like a
small silicon battery that is insulated and inert until activated by solar energy. Once illuminated the cell becomes
conductive and capable of transferring electricity (Plitnik, 2014).

Solar Cells: Poland | Devin M. Lowe

PV systems are highly scalable and become more efficient as the systems become larger, which is both a positive
and negative factor for the consumer. A small system does create energy, but not in any scale that is useful
whereas a large system can create and store substantial volume of energy, but typically has a price tag that is out
of range for the domestic consumer. While industrial users (whom account for 36% of the worlds energy
consumption) can afford to implement solar (and other renewable energy sources) technology to lower energy
and manufacturing costs, the average consumer will find that small scale implementation of solar facilities will not
be cost effective.

PRODUCT
This paper will focus on the most basic element of a PV system, that being the solar cell itself. These cells are
simply comprised of 5 principle layers: Metal Conductor Strips, an Anti-Reflective Coating, two layers of silicone (as
a semiconductor-one positively charged, the other negative), and a metal backing to further insulate the cell.
These layers are carefully sandwiched together, then soldered in series via the metal conductor strips with other
cells to create a full PV system. DC (direct current) electricity is then collected by an inverter so that the electricity
can then be utilized by the more common AC (alternating current) power standard (Chasteen, 2007).

DESCRIPTION
The product to be manufactured and exported from Poland will be single component photo-voltaic solar-cells for
use in larger systems as a means of sunlight to electricity (direct current) conversion. Being highly configurable
each wafer of glass, contacts, and silicon will be manufactured in bulk in Poland before being shipped to the United
States (principally) for final assembly into larger scale more specialized assemblies.

MATERIALS
The single most crucial and costly element of a solar system (panels, inverter, storage, etc.) is the silicon semiconductive material, and on average accounts for 10% of the overall cost of the entire system (Pure Energies
Group, INC., 2015). If production costs of silicon can be lowered, then there can be an overall improvement of

Solar Cells: Poland | Devin M. Lowe

either the profit margin or the cost for the consumer. Other concerns with silicon is also the overall purity of
material, if there are considerable amounts of foreign material in the end product there can be considerable losses
of efficiency.
To maintain a high-order of quality, as well as considerable controls on cost, this specific material will be sourced
from Norway, before being transferred to production facilities in Poland for assimilation into the final cell. Norway
is the fourth largest exporter/producer of Silicon in the world (trailing closely behind the United States), having
produced 330 thousand metric tons in 2015 (up from 297 thousand in 2011) (Statista, 2016)and is also the home of
several innovative companies that are actively improving the manner in which we produce silicon (Christensen,
2015) (Anderson, 2014). Norway may not be the largest producer of silicon in the world, but it might be the most
cost effective and efficient producer in the world. As the solar industry has grown, it has also needed cheaper
silicon in greater quantities however the standard means of supplying such demand introduces sub-standard
semi-conductors into a system that requires maximum efficiency. The fluidized bed method of production, which
blows silane gas upwards through silicon spheres in a heated tube, is relatively cheap and effective but produces
significant waste dust. The Siemens method of production creates large deposits of silicon that is relatively pure,
but harder to process into a workable material. Researchers at the Norwegian University of Science and
Technology have pioneered a method that infuses silicon in between glass fibers that has the collective benefits of
using less silicon and being less energy intensive this method costs 1/3 the overall energy cost compared to
traditional methods (The Norwegian University of Science and Technology (NTNU), 2014). As a final alternative,
Norwegian company Dynatec Engineering is producing extremely pure silicon at a rate 40 times faster than other
methods utilizing a centrifuge reactor to extract silicon from Silane gas and other activators (Christensen, 2015). It
is apparent there is high innovation happening in Norway that isnt being seen as qualitatively in other countries.
Furthermore, there are excellent trade relations between Norway which paves the way for low-cost and simple
trade between the two nations, according to Sten Lundbo the Norwegian Ambassador to Poland (Pawlik, 2005).

Solar Cells: Poland | Devin M. Lowe

FEATURES & BENEFITS

There are twofold benefits to implementing a PV system the first being ecological and the second being financial.
Finances seem to be the most relevant gauge of importance for consumers so I will focus on that benefit.
Furthermore, Active PV systems can be either industrial or commercial, but for the sake of simplicity in examining
the features and benefits of such a system we will focus on a residential project. In an example given by the Energy
Informative in a case study, the costs of a energy are calculated for a single-family residence in Los Angeles,
California.
At present, the purchase of a solar power system is more similar to an investment than the outright purchase of a
typical tangible good. The benefits can only be realized in the long-term, that is to say that even though an initial
cost can be upwards of $15,000 USD a rate-of-return can be calculated that averages 11% which will payback the
average system in 9.5 years. According to the National Association of Homebuilders a typical buyer of a singlefamily home will stay for an average of 13 years before moving out (Emrath, 2013), what this means is the
investment in the PV system will eventually pay dividends of a sort back to the consumer in way of increased
property value and savings on energy costs depending on regional differences, the long term Return on
Investment can be as high as 215% (Maehlum, 2015).
As far as ecology goes, if we intend to supply 70% of a households energy consumption at 5,600kWh per year we
would be doing the same as (Maehlum, 2015):

Removing 6,000 lbs. of carbon emissions

Planted a half acre of trees

Not driving a car 7,500 miles

Solar Cells: Poland | Devin M. Lowe

MARKETS
In terms of efficiency and parity with the cost of traditional sources of electricity, solar energy will be most
advantageous where it can be the most effective. Those conditions are determined to be as follows:

Bright Sunny Climate

High Cost of Conventional Electricity

Reduction of installation costs (in new homes, or where a roof needs replaced)

Necessity for grid hookup

Necessity for a power source to fill the gaps

Power requirements are low

Tax Credits or Subsidies are present

If we further define these conditions, we will gain a clearer understanding of what markets PV systems will be the
most advantageous for and in understanding that fact, we can then market and sell such products more
proactively.
A sunny climate is ideal, though not crucial, for a PV system to operate fully. For example, the American Southwest
has better and more consistent access to solar radiation than London or Seattle which each have significant rainy
periods a panel in Phoenix will produce more electricity and be of more benefit to a consumer than a similar
panel placed in London.
Where costs for electricity are high for the consumer, there will be consumers who will seek to lower their bills
Solar energy is an adequate means of doing so.
Installation costs for full solar systems can be high, and sometimes even invasive to existing structures however
these costs and shortfalls can be mitigated if merged into an already planned renovation (such as a roof
replacement) or new development (such as a subdivision or industrial complex). This has the added benefit of also
accelerating the return on investment as well.

Solar Cells: Poland | Devin M. Lowe

Where the availability of a hookup to an existing electrical grid is either unfeasible or impossible, there exists a
market for solar energy. Take for instance remote places such as far-out cabins, out posts, or even road-signs.
Current technologies allow for a building to be simultaneously attached to both the electrical grid and an
independent Solar source as well. What this means is that a user can diminish their need for grid power by relying
on solar when the weather permits, but have the safety net of the existing grid for when weather does not permit
or energy cannot be stored in reasonable quantities.
If power requirements are low, such as in small portable electronics like calculators, there exists a niche for
renewable power cells such as PV cells. They are cheap and generate far less waste over the lifetime of the unit by
eliminated battery waste.
Many countries subsidize or give tax credits to consumers seeking to lower their carbon footprint through
renewable energy. This incentivizes the consumer to purchase these products, and because of this there is a
broader market for them.

SPECIFIC MARKETS:
INDIA
India represents a significant growing market for PV technologies. All conditions as mentioned earlier are present
for the demand to exist in necessary quantities. India is currently in a nationwide process of modernizing, a matter
which has been a struggle for the nation. Because of this modernization there is an opportunity to encourage the
installation of local solar power distributors on or near new developments this would be a reasonable and cost
saving alternative to building numerous carbon fuel plants and their associated infrastructure. Also it is noteworthy
to mention that Solar prices are currently at parity with the prices for grid electricity and estimates for growth of
this market are expected to normalize to an average of 20% per year (Solar Cell Central, 2015).

UNITED STATES OF AMERICA

Solar Cells: Poland | Devin M. Lowe

The United States is the third largest producer of solar cells in the world (Statista, 2016), and there exist all of the
aforementioned conditions for market existence and success. Because of the massive availability of solar
technologies, there are also considerable incentives to utilize solar technologies and as such the United States is
also one of the fastest growing markets. In 2009 the United States saw 435 MW produced by solar installations;
2014 saw 6200 MW of electricity produced by solar installations. The three largest markets by state are California,
North Carolina, and Nevada (note that these three states are in relatively sunny regions) (Solar Cell Central, 2015).
Most of the growth in the United States has been due to large scale adoption of solar technologies by existing
energy companies as a means to supplement and differentiate their power offerings.

CUSTOMER
In the modern era, electricity is a near universal necessity, and because of that the consumer of photo-voltaic
goods is extremely varied.
House owners present an opportunity in way of millions of domestic roofs as well as within new residential
developments they may seek to reduce energy bills, reduce carbon emissions, take advantage of tax credits (or
power buybacks by the utility companies), or increase the value of their homes. Organizational leaders of either
corporations or municipalities may seek many of the same benefits as the house owner with the additional
motivation to display corporate responsibility or to gain emission credits (particularly useful for industrial
corporations involved in manufacturing). Electric companies might seek Solar power generators as a means to
diversify their energy mix, comply with various regulations, or (in the case of the European Union) to offset having
to buy carbon emission credits. (Green Rhino Energy, 2015)

Solar Cells: Poland | Devin M. Lowe

POLAND
Poland has had a tumultuous political history, and notably has strong history of communism thanks to strong
Soviet influence until the late 1980s. However, since the 1990s the country has dramatically transitioned into a
modern democratic, market-oriented country and is one of the major centers of growth and innovation within the
European Union (which they joined in 2004). There are significant investments in defense, energy, and
infrastructure.
As far as the people are concerned: 98.2% of the population speak Polish, the median age is 39.9 years, the gender
mix is relatively even, 99% are literate, and unemployment for educated young adults rests at a relatively low
27.3% (which presumably is leading to slight, yet still noticeable, migration rate of -.46 migrants per 1000
individuals). Of a labor force of 18.29 million, 30.4% are qualified and hirable in the industrial sector.
Poland is a modernized country, with a growing economy, that is becoming a center of innovation and production
due to a high-influx of FDI, and the skilled affordable labor present within the country.

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HOFSTEDES 6-D MODEL

(The Hofstede Centre, 2016)
According to the insights afforded to us by Hofstedes cultural dimensions we can anticipate several possible
blunders (by us and to us) when engaging the Polish in business as an American company. If unchecked there is the
possibility that we will underestimate the time it takes to create trust among partners in Poland this is due to
high parity between dimensions of individualism, and uncertainty avoidance. Having such a high value for power
distance indicates that Poland is hierarchal or at least respects established authority, if we were to attempt to sidestep authoritative figures it could be interpreted as offensive or un-couth additionally it would be prudent to give
due honor to those that are in power.

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HECKSHLER-OHLIN THEORY
We can assume, at a basic level, that since Poland is a reasonably (though economically transitional) developed
nation with either direct or close access to raw materials for the production of PV cells (through Norway or Russia),
an abundance of educated skilled labor looking for work, and interest in becoming a leader in high technology
production that there will a positive net effect on the economic welfare of Poland through the manufacture and
export of technological products PV cells being a contributive factor to that. There is considerable infrastructure,
facilities are available for manufacture, and labor is plentiful and affordable (comparatively to similarly developed
nations) these factors create a certain advantage for Poland.

PORTERS FIVE FORCES ANALYSIS

Porter's Five Forces analysis is a simple and generally effective tool for assessing the potential for success or failure
in an attempt to enter a new market. The forces guide the assessor into forming a generalized sense of context
surrounding the scrutinized market and industry. This context will be the basis for which a more involved strategy
can be either implemented or avoided. It is necessary in any sense (be it domestic or international) to give due
credence to the existing niches that may be under-served and the prior industrial conditions in order to better
understand how a new entrant might fit. On a more holistic note, an application of porter's five forces on an
industry that a company is already present in could help to define future direction - in the context of a blue ocean
strategy this would perhaps instigate new product lines divergent from the general trends found amongst a
company's competitors.

1. BUYER POWER
At the current rate of growth and investment in the Solar Industry we see an excess of demand. What this means is
that buyers have little say in regards to pricing and quality which means that profits can remain at their highest
sustainable level. If supply were to increase for any variable reason this dynamic could flip, and the massive
overhead of supply would push profits and feasibility of the industry down.

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2. SUPPLIER POWER
Silicon is a crucially vital material for the production of solar cells. It has been historically difficult and costly to
produce and has no substitute in terms of availability and effectiveness, because of this the supplier has significant
sway in the industry. Fortunately, it would appear that most suppliers recognize the current and future demand for
solar products and seem to have chosen to best serve the budding solar industry in terms of price.

3. THREAT OF NEW ENTRANTS

There is a generally low threat of new entrants due to various barriers of cost, scale, and customer switching costs.
There are already numerous corporations procuring and manufacturing solar cells in a variety of foreign markets
and the largest of these enjoy exceptional advantages of absolute cost as well as economies of scale, which makes
it difficult to compete on a cost basis for a new entrant. Solar Power systems of any variety are comprehensive in
the scope of their installation, and many parts are proprietary what this means is that if a consumer intends on
switching, adding, or augmenting their power generation with different solar accessories, it will most likely include
a hefty price. Due to this fact it will be difficult for any entrant (new or old) to convince most consumers to switch
to their product based on startup cost alone, much less convince a consumer to switch solar products. The threat
of New Entrants is low however not impossible, if a company were to enter into the mix with a product that was
markedly different than the rest in terms of either quality, cost, or education they would stand a fair chance of
being competitive due to differentiation.

4. THREAT OF SUBSTITUTES
There are innumerous substitutes for solar power in terms of the generation of electricity and the fulfilment of the
consumers needs therein. These substitutes include any variety of carbon-fuel power plants, nuclear power, wind
power, or hydro-dynamic power all of which serve the same need of electricity for the consumer. Where Solar is
unique is in its renewability and low-carbon footprint. These alternatives all pose a threat to the solar industry,
through an intensive campaign of promotion that evangelizes the benefits of solar over traditional sources a
company could conceivably begin to overcome these other threats.
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5. COMPETITIVE RIVALRY

The solar production market is extremely homogenous in terms of product differentiation. Competition happens
on a basis of price, efficiency, and technological developments. As mentioned in the Threat of New Entrants
section significant differentiation of the product in the eyes of the consumer may be the most effective means of
being competitive. It is noteworthy to mention that perhaps capitalizing on the apparent lack of brand loyalty
amongst consumers by increasing promotional efforts in a manner that could perhaps actually create a qualitative
community of users that are loyal and evangelize not just solar products, but a specific brand therein.

MARKETING MIX
The Marketing mix is defined as the Choices about product attributes, distribution strategy, communication
strategy, and pricing strategy that a firm offers its targeted markets (Hill & Hult, 2016), or more commonly as the
4 Ps those being product, place, price, and promotion.

1. PRODUCT
Photo voltaic cells are not unique within the solar industry, however through improved material production and
procurement methods (in Norway) and affordable and quality primary component assembly in Poland, we can
create a more affordable and reliable unit for which to place within our larger more specified solar units or to
source off to other solar manufacturers.

2. PLACE
Ultimately, the goal should be to make solar technologies extremely available to consumers (be they private or
industrial). This can be achieved through price reductions through improved efficiencies in manufacturing and
strategic placement of export/distribution centers. By locating a primary hub of manufacturing in Poland, we will
have immediate access to the growing European market for for renewable energy as the EU countries actively
engage in updating their aging infrastructure for power distribution.

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3. PRICE
Price has historically made the consumers ability to enter the solar markets difficult. However, through various
incentivizing mechanisms offered by national and municipal governments, financing option can make investing in a
solar product much more feasible for the average consumer. Through tax exemptions and miscellaneous duty
reductions governments such as the United States and Germany are aggressively seeking to promote renewable
energy reliance among consumers.

4. PROMOTION
Promotion for solar cells is difficult, and the product should be directed towards systems manufacturers through
directly connecting with potential buyers to explain the benefits of our particular cells. In general though, there is a
collective benefit to be had for the industry if a company or consortium were to engage in more effective
measures of public education regarding solar technology. As it stands, it appears that most consumers find solar
(and other renewables) to be a good thing but either unaffordable or unfeasible. This should be regarded as an
issue and more attention should be given to informing consumers about the energy savings, tax incentives, and
financial benefits of a switch to solar as I believe that most are already aware of the ecological benefits.
Furthermore, there does not appear to be any measure of significant brand loyalty for any company within the
solar/renewable energy industry. It would be in the best interest of a new (or existing) entrant into the market to
begin to create an intense following of consumers and/or investors based on either actual or perceived advantages
of efficiency and price for a particular brand. The market and industry appears to be an even playing field for the
existing competitors, and rather homogenous there is little to distinguish brands from one another. Through
aggressive focus on innovation, community, and direct communication I believe that a company could begin to set
itself apart and become a leader in the industry regardless of the state of entry (new or existing).

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ORGANIZATIONAL DESIGN
This organization shall be a a multinational operation with hubs in the United States, Poland, and India each
respectively being a greenfield venture to benefit from local advantages of language and labor costs. Operations in
Poland shall be focused upon the manufacture of basic components as well as the assembly of component cells
into larger systems. This is due to the proximity and open trade with such major silicon producers such as Russia
(which massively produces the material) and Norway (which affordable produces higher grades of the material),
the comparatively affordable cost of skilled manufacturing labor, and access to Solar Markets within the European
Union. Hubs in India and United states shall receive the basic components of silicon solar cells to be manufactured
into larger assemblies with more specific uses. The unit in the United States shall be the primary headquarters and
parent company due to trade incentives between all three nations, access to skilled management, and locality to a
growing solar market in-country.
For Poland specifically, operating a company entirely within the country and utilizing local talent will allow for
operations to occur in a more fluid manner. Ideally, American presence would be minimal and Polish managers
would be trained within U.S. facilities and only guided as needed by U.S. nationals.

INTELLECTUAL PROPERTY CONSIDERATIONS

As explained earlier, PV solar cells are relatively simple in concept but it takes a particularly skilled organization
to create efficient units. Because the basic concept of solar cell technology is so simple, it is crucial to protect those
concepts and implementations that create more efficient, less costly, or just generally improved units as that
might be the only factor that can set a company apart from the rest of the competition.

SHIPPING AND TRADE CONSIDERATIONS

When Poland acceded to the European Union in 2004, the country also became a member of the European Union
customs union and thereby now share the same import duty rates as the rest of the member states.

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According to TARIFF NOs.: 8541.40.6010 of the Harmonized Tariff Schedule of the United States pertaining to
Other Diodes: SolarCells: Assembled into modules or made into panels and 8541.40.6020 pertaining to Other
Diodes: Solar Cells: Other the rate of duty will be free. (United States International Trade Commission, 2015)
If a pallet of 10,000 solar cell units were to be shipped from Warsaw to Phoenix (each city arbitrarily chosen) via
UPS, the cost (with insurance) would be 9,283.80 in Polish Zloty (or 2387.69 USD) (United Postal Service, 2016).
Assuming a unit cost of $1USD, and a total product value of $10,000USD shipping FOB U.S. customs would assess a
34.64 processing fee. The total landed cost of product, shipping, and insurance would amount to $12478.46USD
per pallet. Duty is not assessed due to the HTSUS scheduling, however because this product is classified as Dualuse there is the likelihood that an Export Control Classification Number will be required.
Required Forms can be found in Appendix B.

FINANCING
Capital is, at present, difficult to access for most Polish firms which makes the a wholly owned subsidiary an ideal
means of leveraging Poland as a manufacturing hub and potential market seeing that we have better access for
financing arrangements in the United States. In regards to trade, Export.Gov recommends utilizing Export-Import
banking programs as a critical part of any trade strategy involving Poland. Financing procedures in Poland typically
operate under direct seller-buyer terms with safe payment being secured under an irrevocable letter of credit
(L/C). There are particular benefits from the Polish government via the Polish Investments Program, which seeks to
create the best conditions for long-term financing of infrastructure investment projects- which include
companies that would aid in the improvement of power generation projects and infrastructure. American
companies are able to benefit from this program as subcontractors, however by directly investing in a start-up in
Poland we would be directly taking advantage of said programs. (Export.Gov, 2016)

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MARKET ENTRY STRATEGY

The following strategy makes the following assumptions:

The U.S. company already Exists

Business is sustainable

Growth has flat lined

SUSTAINABILITY AT HOME
The first step shall be able to successfully design and manufacture a sustainable and necessary family of products
for the existing market in the United States. With low volume, the U.S. company can continue to utilize its own
engineers and managers to oversee production and continue to develop high efficiency cells. If this is sustainable
we can then attempt to utilize low pricing as a means of penetrating and supplying the needs of the European
Market for solar subsidized by profits from the existing American venture. This phase is unstainable for any
length of time, and the next phase should begin as soon as it is deemed feasible.

POLISH GREENFIELD VENTURE

If the European market has been deemed to be accessible at this juncture, we can begin to implement the
secondary phase of setting up a wholly owned subsidiary within Poland to be the strategic hub for manufacturing
and distribution into the Euro-market. This hub shall operate utilizing local talent and be subsidized and overseen
by the now multi-national parent company in the United States. Manufacturing being a primary element of this
corporation will cause source material procurement, production efficiency, and quality control to be of the utmost
concern. As a secondary, but no-less important measure, the Polish subsidiary shall engage in direct
communication with municipalities, developers, and local community groups as a means of evangelizing the
benefits of Solar Energy, and dispelling misconceptions regards the industry.

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LICENSING AND JOINT VENTURE

If the secondary phase has become sustainable and profitable it will be in the companys best interest to begin to
seek further engagement in the global market by partnering with strategic distributors and importers to improve
rd

overall penetration. Through licensing the manufacture or utilization of our products, or allowing for 3 party
distributors we can benefit from localization economies and leverage existing networks that were previously
inaccessible to us. This phase could also act entirely as a replacement for the second phase. There is significant risk
of losing controls on quality or brand image in this scenario, and over-sight measures should be implemented to
ensure the brand identity and manufacturing consistency is protected.

CONCLUDING THOUGHTS
If carefully implemented I believe it would be plausible for a relatively minor player in a single market (in this case
the United States) to globalize and expand operations by capitalizing on unique technological improvements,
benefits from localization, and improving education on solar technology. At present, Poland is an attractive
location for technology manufacture due to its confluence of education, economic development, and labor costs;
as a distribution hub it will allow future accessibility to the European Union. Trade between the European Union is
extremely open in regards to the renewable energy sector both in terms of exporting component parts, full
systems, and support services. This means that we can capitalize on manufacturing efficiencies and locality to highquality resources for basic manufacture, send components to regional manufacture/distribution centers for final
assembly into more specific products based on regional need, and then even trade back final products back to
originating countries to augment regional supply as a matter of placement, this makes the company highly
capable and flexible in terms of providing immediate and personalized products for a region. There are few trade
barriers in place between the proposed countries of the U.S., Poland, Norway, and India which makes trade
mechanically more feasible. As energy needs increase amid concerns regarding fossil fuels there will be continued
demand for alternative sources of renewable and sustainable energy sources which Solar Technologies and PV
programs have the capability of fulfilling, this means that there will be a continued market for the procurement,
development, and dispensation of such products. Furthermore, government internationally are providing
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incentives on a basis of taxes and subsidy to encourage the use of alternative energy generation which is making
the cost for either new or retrofitted systems more affordable for everyone. While the current market for Solar
represents only 1% of the total market for energy provision, it is well positioned to become a much more vital part
of the planets energy mix in the coming century which bodes well for any company attempting to gain an early
market share.
If a solar company were able to come along and truly captivate the average consumers attention (much like Tesla,
SpaceX, or Apple have done) and truly make the want for renewable energy sourcing an intrinsically important
factor of everyday life then the sky is literally the limit for future growth.

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WORKS CITED
Anderson, J. (2014, November 5). Using 'dirty silicon' to cut the cost of solar cells. Retrieved from Gizmag:
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APPENDIX A

(British Petroleum, 2015)

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Solar Cells: Poland | Devin M. Lowe

APPENDIX B

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Solar Cells: Poland | Devin M. Lowe

For products such as completed solar panels being shipped back into the United States from Abroad:

26