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How To Setup 5MW and 10MW Solar PV Module Production Unit
How To Setup 5MW and 10MW Solar PV Module Production Unit
/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, I’ll 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.
amrit.mandal0191@gmail.com 1
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 2
Market Analysis
Installed Plants
400
350
300
250
200
150
100
50
0
United States China Germany India United Spain Italy
Kingdom
Installed Capacity
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0
Now, let’s 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, let’s 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
And for the listed 7 countries in total, it is = 83,000,000 or 83 millions of 250Wp SPV Panels.
amrit.mandal0191@gmail.com 3
Now, let’s see the up-coming or proposed or under development projects (June,2014 to
March,2015) in these same countries:
United
Kingdom
United States
India
Germany China
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 United States = 56.72 millions of 250Wp SPV Panels (48%)
Total demand in those 7 countries = 118.17 millions of 250Wp SPV Panels (100%)
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Let’s 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 USA India Germany Italy United Japan
Kingdom
Target in GW Installed Capacity as on dec, 2013 (GW) 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
*just like the previous calculation, here also the 250Wp Poly-Si PV Panels have been considered.
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Indian Market Overview:
State Wise target – under JNNSM scheme & other State Govt. Policies :
State Target By the year Proposed Allocations in 2014
Uttar Pradesh 500MW by 2017 300MW
Uttarakhand 500MW by 2017 50MW
Karnataka 200MW by 2016 50MW
Rajasthan 750MW by 2017 None
Punjab 1000MW by 2022 300MW
Tamil Nadu 3000MW by 2015 None
Chandigarh 1000MW by 2017 100MW
Odisha 135MW by 2015 20MW
Madhya Pradesh 800MW 100MW
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Indian Market Analysis & Scope of New Production Unit
Total Production Capacity Per Year in Indian Market 2GW (around)
Total Production by 2020 (considering yearly yield at 14GW
fixed value)
Demand in Indian market by 2020 17.7GW
Extra Production Capacity required per year 620MW
Global Market Analysis & Scope of New Production Unit
Considering the Global Market, demand per year 26GW
Installed production unit all around the world 16.7GW
Excess Solar PV demand per year around the world 9.3GW
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 ABC’s work order where the panels will
be manufactured at XYZ’s factory under the name plate & brand name of ABC’s.
So, the point is that the actual manufacturing or production capacity is always 60-70% of the highest (which is 2GW for
India)
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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.
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Required Materials & their specification:
For 250Wp Modules (as an example)
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Module Frame: Used For:
Dimension: 1638x982x40mm (LxWxH); 50mm To give a structural solid
end-end gap in L & W. usable shape to solar PV
Material: Anodized Aluminium Alloy module & to create a
Solar PV Panel
As far now, I hope that readers will get a clear idea about the basic components required to make a
solar PV Module. Next, I’ll present the technical details of the equipment required to
Assemble/Manufacture a Solar PV Module. I’ll 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.
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Technical Details of the Manufacturing Instruments
Automatic Solar PV Module Laminator
Image source: www.reoo.net
Dimension 2.2x3.6m2
Laminating Area (WxLxH) 2200mm x 3600mm x 25mm
Control mode Manual / Automatic
Control System PLC (Δ); HIMS: Touch Screen (Δ)
Laminating time 2-4 minutes (excluding solidification time)
Heating Mode Oil heating with flow pressure 0.28~0.32MPa
Temperature Control PID based
Temperature Uniformity ≤ ±1.50C
Temperature control accuracy ≤ ±1.00C
Temperature control range 300C - 1800C
Pumping Rate 70 Lps
Heating rate 1350C at room temp. with 50-60 minutes
Vacuum rate 200Lps
Silicone sheet size 3800mm x 2400mm, 5mm thickness
Lid Opening Straight from hydraulic (200mm max height)
Production capacity
(this equipment is for laminate solar glass, EVA, Solar cell & backsheet)
Mode-1 (Single shift; 8hours a 250Wp x 3pieces/time x 3times/hour x 8 hours
day) x 300 days = 5.4MWp/year
Mode-2 (Double shift; 16hours a 250Wp x 3pieces/time x 3times/hour x 16
day) hours x 300 days = 10.8MWp/year
Comp. air pressure required 0.6 – 1.0 MPa
Total Power Consumption 75KW/38KW (3-ph, 5line; 50Hz)
(Rated/Actual)
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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).
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Electro-Luminance (EL) Tester:
Required to inspect the solar PV Module for secluded split, cracked cell, rosin joint, wire break &
defects
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Framing Machine:
Required to fix solar Module frame and seal the 4 corner of the frame
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Operating platform dimension 1800 x 1200 mm
Electric Iron:
Heating by high frequency vortex, special sensor can accurately rapid control iron the soldering
temperature.
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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.
Cleaning table:
Table for cleaning the surface of the finished
module.
Dimension: 1200X800X800mm,
Support 300w panel
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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
customer’s need.
Capacity: 1.2CBM /s
Pressure: 1 Mpa
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amrit.mandal0191@gmail.com 18
Plant setup:
Total Space required 935m2
Power Source 3-ph 5 line 50KW for 5MWp & 100KW for 10MWp yearly
production capacity
Air conditioning Should be maintained at 250C until the lamination process
Compressed air source Max 1.2MPa
Environment Dust-proof, enclosed
Water supply To a small extent
Condition of Stock room Ambient temp at 250C with controlled humidity
Module tester
Laminator
Interconnection
Stringer
Layup station
Cell testing
Glass washing
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Process Flow:
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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).
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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: 1 2 3 4 5 6 7
Relevant benefits:
Incremental Value of New Business $32,00,000 $30,40,000 $28,88,000 $28,01,360 $27,70,545 $27,70,545 $27,70,545
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)
amrit.mandal0191@gmail.com 22
Return of Investment Analysis
Total
Year Expenditure Cumulative Sales Comulative
Expenses Sales
0 $22,44,000 22,44,000 $32,00,000 32,00,000
1 $21,98,130 44,42,130 $30,40,000 62,40,000
2 $21,46,038 65,88,168 $28,88,000 91,28,000
3 $21,02,178 86,90,346 $28,01,360 1,19,29,360
4 $20,57,982 1,07,48,328 $27,70,545 1,46,99,905
5 $20,19,528 1,27,67,856 $27,70,545 1,74,70,450
6 1,27,67,856 1,74,70,450
1,27,67,856 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 Year4 Year5 Year6
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Break Even Analysis
Breakeven Point (units): 437
Sales volume analysis:
Sales volume
per
month(units) 0 167 333 500 667 834 1,000 1,167 1,334 1,500 1,667
Fixed
costs/month 20,750 20,750 20,750 20,750 20,750 20,750 20,750 20,750 20,750 20,750 20,750
Variable costs 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
- -
Net profit (loss) 20,750 12,831 -4,913 3,004 10,923 18,841 26,759 34,677 42,596 50,514 58,432
Unit
contribution
margin
27%
Variable costs
per unit
73%
Other
Variable Costs Per Unit variable
Supplies per unit costs per
10% unit
6%
Shipping per unit
0%
Direct material
per unit
16% Commissio
n per unit
68%
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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 2 3 4 5 6 7 8 9 10 11
(50,000.00)
Fixed costs per period Total costs Total sales Net profit (loss)
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Mode2 – For 10MWp SPV Module Production Capacity
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Investment Payback Analysis – For 10MWp production unit
Year: 1 2 3 4 5 6 7
Relevant benefits:
Incremental Value of New Business $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
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
Income before taxes $20,05,600 $19,71,060 $19,46,704 $19,07,801 $18,72,014 $18,31,898 $17,90,884
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
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
amrit.mandal0191@gmail.com 27
ROI Analysis:
Year Costs Cumulative Benefits Cumulative
Costs Benefits
0 $ 44,73,200 44,73,200 $67,00,000 67,00,000
1 $ 43,73,740 88,46,940 $65,66,000 1,32,66,000
2 $ 42,72,276 1,31,19,216 $64,34,680 1,97,00,680
3 $ 41,83,035 1,73,02,251 $63,05,986 2,60,06,666
4 $ 40,92,703 2,13,94,954 $61,79,867 3,21,86,533
5 $ 40,09,827 2,54,04,781 $60,56,269 3,82,42,802
6 $ 39,29,715 2,93,34,495 $59,35,144 4,41,77,946
2,93,34,495 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 Year3 Year4 Year5 Year6
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Break Even Analysis
Breakeven Point (units): 687
Sales volume analysis:
Sales volume per 1,00 1,33 1,66 2,00 2,33 2,66 3,00 3,33
period (units) 0 333 667 0 4 7 0 4 7 1 4
Sales price per
unit 175 175 175 175 175 175 175 175 175 175 175
Fixed costs per 32,6 32,6 32,6 32,6 32,6 32,6 32,6 32,6 32,6 32,6 32,6
period 50 50 50 50 50 50 50 50 50 50 50
42,5 85,0 1,27, 1,70, 2,12, 2,55, 2,97, 3,40, 3,82, 4,25,
Variable costs 0.00 08 17 525 034 542 051 559 068 576 085
32,6 75,1 1,17, 1,60, 2,02, 2,45, 2,87, 3,30, 3,72, 4,15, 4,57,
Total costs 50 58 667 175 684 192 701 209 718 226 735
58,3 1,16, 1,75, 2,33, 2,91, 3,50, 4,08, 4,66, 5,25, 5,83,
Total sales 0.00 45 690 035 380 725 070 415 760 105 450
- -
32,6 16,8 14,8 30,6 46,5 62,3 78,2 94,0 1,09, 1,25,
Net profit (loss) 50 13 -977 59 96 32 69 05 42 878 715
27%
73%
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Variable Costs Per Unit
$7.50 , 6%
$12.50 , 10%
$0.00, 0% Commission per unit
6,00,000.00
5,00,000.00
4,00,000.00
3,00,000.00
Total costs
2,00,000.00
1,00,000.00
0.00
1 2 3 4 5 6 7 8 9 10 11
(1,00,000.00)
Sales Volume (Units)
amrit.mandal0191@gmail.com 30
Marketing Strategies
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
Owner’s 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.
Please feel free to contact me to clear any doubt regarding Solar work at my personal e-mail id:
amrit.mandal0191@gmail.com
amrit.mandal0191@gmail.com 32