INDUSTRY RESEARCHSTUDY OF SOLAR PV INDUSTRY

Submitted to

PROF. K.K.SRIVASTAVA

By

GROUP M123

SRI HARSHA K

MOHAMED ARSHAD Y

GENERAL FACTS ABOUT SOLAR PV INDUSTRY

Solar energy is the most Abundant, Sustainable and Renewable source of energy.

Global Solar Energy Capacity has increased >600% in the last 5 years. The cost of photo voltaic panels came down 75% in the last 5 years. The world's top solar market (as off now) is China, Followed by Germany

and USA. The matured markets are Germany, Spain, Italy and California (USA) and

the new markets are India, Australia, South Africa and Ontario (Canada). Around one third of Indians do not currently have access to electricity. Solar industry is a policy driven market, therefore the Government's role is

key to the industry. India has a separate ministry called Ministry of New and Renewable

Energy, with the motto of reaching parity for solar power by 2022. 100% FDI allowed in RE sector in India with no prior approval.

GENERAL DESCRIPTION

Overall size (volume, value) Global PV installations:

- 32 GW in 2012

- 35GW in 2013 (projected)

Indian PV installations:- 1GW in 2012- 2GW in 2013 (projected)

Global Solar Energy market: $77billion

GROWTH RATE

The 5 year growth rate from 2007 to 2012 was approximately 55% per year!

PV Solar Installations by Country

FUTURE OUTLOOK

After 2013, the growth estimates range from 15% to 25% globally.

The Indian solar energy sector is estimated to grow at 25% year on year in next few years.

India is expected to install 12 GW by 2016

SWOT ANALYSIS

OPPURTUNITIES

Increased awareness on green energy India is a Tropical country embraces more production India is a power deficit country  Attractive Feed in Tariff State/central governments subsidies and tax exemptions  Government mandation on electricity from renewable sources

THREATS

Policy driven market Dependency on dollar market Cost of silicon Grid must be maintained well

STRENGTHS

Among the other sources of energy – Wind- Erratic power supply– Hydel- Not a single dam is not cash flow positive and high risk of flood – Thermal- Coal cost is high and it is depleting– Bio Gas- Heavy maintenance and waste management is a challenge

Decentralized and Lots of business opportunities Government support

WEAKNESS

Relatively high consumption of water, especially under southern weather conditions

High consumption of agrarian fields comparing to other energy production methods Returns only after 7 years

GENERAL SKETCH

LOCATION CONCENTRATION

PRODUCT/SERVICE PORTFOLIO

ON GRID

Grid connected power (solar power plants)

OFF GRID

– Solar lanterns– Emergency lights– Street lights– Solar Power Plants for village– Solar Pumps– Solar water heaters– Solar home lighting systems– Solar power plant for industries

TARGET MARKET

Residential sector (in KW’s & Stand alone) Commercial sector (in MW’s & Stand alone)Utility sector (in MW’s & Grid-connected)

COMPETITIVE ADVANTAGE OVER RIVAL INDUSTRIES

Oil, coal and other fossil fuels are a finite resource they will eventually become depleted. As these resources become depleted they will rise in costs.

Solar industry’s competitiveness depends on the sunlight. Hence solar power industry stands competitive in tropical country such as India.

DESCRIPTION OF PRODUCT/SERVICE

ON GRID (in MW’s) (For Utility Scale) Products Capacity Range Grid connected power (solar power plants) 1MW & aboveOFF GRID (in W’s & KW’s) Solar lanterns, Emergency lights, Pumps and Street lights to Regulatory

bodies/panchayats Solar home lighting systems and solar water heater systems (roof top systems) to

End customers Stand alone solar power plants usually (<300KW) for Commercial/industrial

purposes Products Capacity Range

Solar Lanterns 2-15 Wp Solar Home Lighting Systems 37-74 Wp Solar Pumps 1-2 KWp

Solar Street Lights 26-74 Wp Solar Power Plants for Village 1 KWp-110 KWp

GEOGRAPHICAL

INTERNATIONAL

NATIONAL

SIZE OF SEGMENTS

Type Installed Capacity (In MW) by the end of 2012

Grid Connected Power 1176.25

Off-Grid (SPV Systems) 106.33

COMPETITORS

The competition is a between 'concentrated' and 'fragmented' Largest players will include 

TATA –

Strengths- Its brand value, 25 years history in solar.

Weakness- Breakup with BP, outdated manufacturing processes used.

Opportunities- Anti dumping fear in the market, large markets opening up in South India.

Threats- New manufacturers with better technology and lower prices.

L&T –

Strengths- Brand value in infrastructure development

Weakness- New entrant in solar, not a manufacturer.

Opportunities- People realize the importance of operation and management of plant their forte.

Threats- Global players entering the market with extensive experience in solar.

MAHINDRA-

Strengths- Brand value in consumer goods

Weakness- New entrant

Opportunities- Market has opened

Threats- Global players entering the market with extensive experience in solar.

CORPORATE STRUCTURE

MOSTLY SOLE PROPRIETORSHIP

MARKETING STRATEGY WIDELY PRACTICED IN THE INDUSTRY

Product Strategy-

Products/ solar modules are commoditized. They are categorized in terms of 'Wp'. No innovation is entertained at this point. 

Pricing-

Solar Cells amount to 70% of making cost of solar modules. Prices are hence directly affected by the dollar price. Cost based purchase prices based on FIT(Feed-In-Tariff) policy

Promotion-

Promotion is exclusively through trade fairs/shows

Placement-

As far as modes of distribution go, the manufacturers involve in direct selling

THANK YOU