Industrial research solar pv industry

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Industrial research solar pv industry

  1. 1. INDUSTRY RESEARCH STUDY OF SOLAR PV INDUSTRY Submitted to PROF. K.K.SRIVASTAVA By GROUP M123 SRI HARSHA K MOHAMED ARSHAD Y
  2. 2. 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.
  3. 3. 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
  4. 4. GROWTH RATE The 5 year growth rate from 2007 to 2012 was approximately 55% per year!
  5. 5. PV Solar Installations by Country
  6. 6. 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
  7. 7. 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
  8. 8. 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
  9. 9. GENERAL SKETCH LOCATION CONCENTRATION
  10. 10. 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
  11. 11. TARGET MARKET Residential sector (in KW’s & Stand alone) Commercial sector (in MW’s & Stand alone) Utility sector (in MW’s & Grid-connected)
  12. 12. 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.
  13. 13. DESCRIPTION OF PRODUCT/SERVICE  ON GRID (in MW’s) (For Utility Scale) Products Capacity Range Grid connected power (solar power plants) 1MW & above  OFF 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
  14. 14. GEOGRAPHICAL
  15. 15. SIZE OF SEGMENTS Type Installed Capacity (In MW) by the end of 2012 Grid Connected Power 1176.25 Off-Grid (SPV Systems) 106.33
  16. 16. 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.
  17. 17. CORPORATE STRUCTURE  MOSTLY SOLE PROPRIETORSHIP
  18. 18. 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

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