1. Building a complete manufacturing eco-
system in India
November 10,2011
Madhavan Nampoothiri
Energy Alternatives India

2. “Has India missed the chance to
become a PV manufacturing super-
power?”

3. Overview
• Global PV manufacturing - Where does India stand today?
– Crystalline Silicon(Polysilicon to modules)
– Thin Films
– Balance of Systems(Inverters)
– PV Manufacturing Equipment
• What are the challenges to become a serious player?
• Is policy support sufficient to make that happen?

4. Solar PV – The evolution..
Annual Installations Annual production - Modules
90% 60%
80%
50%
70% Japan
60% 40%
EU
50%
USA
Japan 30%
40%
30% 20% EU
Rest of the
20% World Rest of the
10% World
10% USA
China/Taiwan
China/Taiwan
0% 0%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Source: EPIA Source: EPIA
Cumulative Global Installations(2010): Share of global PV Production capacity(2010):
Europe –30 GW (over 75%) China – more than 50%
India – About 30 MW (less than 0.1%) India – Less than 5% (in modules)

5. Global PV Manufacturing : Charging ahead!!
C- Silicon Thin Films
60 China: 4.5
16 GW 54.0
52.3
4
50 India: 47.3 Moser Baer 60 MW
0.6 3.5 HHV (a-Si)
GW 41.5
40.0
40 36.7 3
Capacity (GW)
Capacity (GW)
32.9
2.5 Shurjo
30 28.2
China:
20 GW
2
20 1.5
India: 1
10 1.2 GW
0.5
0 0
2009 2010 2011
2010 2011
PolySilicon Wafer Cell Module CdTe CIGS a- Si
Source: iSuppli(May 2011)
Source: GTM Research(May 2011)

6. Global Inverters manufacturing: Not left behind..
Top Global Inverter Manufacturers
Inverter Production Capacity vs. Solar PV Installed Capacity
SMA
SMA-35% Power One
45 SMA-40% Market
Share(E)
Kaco
Market
40 Share
Fronius
35 SMA-40% REFUsol
Market
30 Share Satcon
25 Danfoss
20 Solarmax
15 Delta
10 Advanced Energy
5 Indian Scenario
0
2009 2010 2011
AEG
Invertor capacity(GW) Installations(GW)
Delta Electronics (WIP)
DB Electronics

7. PV Manufacturing equipment : European
domination continues..
Rank Company Revenues Country
($Million)
1 Applied Materials 1495 USA
2 Centrotherm Photovoltaics AG 825 Germany
3 GT Solar Incorporated 775 USA
4 Meyer Burger^ 735 Switzerland
5 Gebr.Schmid GmbH+Co 570 Germany
6 Ulvac, Inc. 380 Japan
7 Roth & Rau AG* 325 Germany
8 RENA Sondermaschinen GmbH 300 Germany
9 48th Research Institute of CETC 295 China
10 Oerlikon Solar 195 Switzerland
^ Second after acquisition of R&R
* To be acquired by Meyer Burger
R&R sold CdTe coating division to undisclosed Chinese buyer
List includes both c-Si and Thin Film capacities
Source: VLSI Research
HHV in India

8. Indian PV manufacturing – The challenges
Financial
Operational
Market

9. Market Challenges – Dramatic price drops Manufacturing Operations
$4.50 Highlights:
$4.25
$4.00
$3.50
Excess
capacity
- Commodity manufacturing(almost)
$3.00 - Standard off-the-shelf technology available
$2.50 $2.60
$2.20
$2.00
$1.50 Key success factor:
$1.20
$1.00 $1.00
$0.70
• Lead times in commissioning a unit
$0.50 $0.45
$-
$0.21 • Utilization rates
2008 2009 2010 2011(Q4) 2012(ASP • Infrastructure(ex. electricity)
Estimate)
Module($/W) Cell($/W) Wafer($/W) Polysilicon($/W)
C-Si
Investments and returns Cost Drivers
Poly Silicon Ingot & Cells Module Module 8.0% 0.3% 89.0% 0.7%
Wafer
Investments/ Medium Medium High Low Cell 37.0% 3.0% 52.0% 5.0%
MW
Optimum Very High Medium Low Very Low Wafer 30.0% 4.0% 60.0% 4.0%
production
scale
Polysilicon 45.0% 26.0% 17.0% 10.0%
Margins High Medium Low Low
0.0% 20.0% 40.0% 60.0% 80.0% 100.0%
Capex Depreciation Electricity Materials Labor Cost Others

10. Market challenges Manufacturing Operations
- Narrowing gap with c-Si Highlights
- R&D intensive, not commodity manufacturing
- Lower conversion efficiency - Standard production technology not available
- a-Si : limited efficiency upside - Successful CdTe manufacturing tech
proprietary
- Cadmium : a carcinogen Success factors
- CIGS : Not cost competitive yet • Lead times
• High R&D
• Sourcing of rare earth metals/raw
materials
Thin
Investments and returns Films Cost Drivers
a- Si CdTe CIGS
CdTe
Capital High Medium High CIGS
Investments
a Si
Optimum Scale Low Low Low
of Investment 0 20 40 60 80 100
Raw material and consumables Capital Depreciation & amortization
Energy Labour
Research & Development Others

11. Policy support for Manufacturing
Chinese Advantage
Ontario, Canada • Low interest loans (4.8% in Jan 2011)
- Local content • No principal or interest payments for
requirement first 5 years
Italy • Scale of loans much higher (over 60% of
- 10% higher FiT CAPEX funded)
Chinese Advantage for made in EU • Local content mandated for
• Low interest loans (4.8% in Jan 2011) manufacturing
• No principal or interest payments for first 5 years
USA • Scale of loans much higher (over 60% of CAPEX
India
- Local content requirement under
-Sunshot Initiative JNNSM
-- DOE loans(eg. Solyndra) funded) -Incentives under Rajasthan policy
• Local content mandated for manufacturing- Duty exemptions

12. Half glass full or half glass empty?
• Global PV manufacturing - Where does India stand ?
o Crystalline Silicon – Negligible, but relatively better
o Thin Films - Negligible
o PV Manufacturing Equipment – Negligible
o Inverters - Negligible
• What are the challenges?
o Market - Global excess capacity
o Operational – Scaling up fast, continuous cost reduction, efficiency increases
o Financial – Huge capex outlays, Low cost financing
• Is policy support sufficient?
o More can be done
• Silver lining – We can only get better!!

13. How can we get around the
challenges?
• Shammy Khan, VP Strategic Markets, Flextronics - "PV
manufacturing- Outsource vs. InSource"
• Dr. VS Gangadhara Rao, Lanco Solar, "PV Manufacturing
Technology Options“
• Prasanth Sakhamuri, HHV Solar, "The case for equipment
manufacturing in India - experience with thin film equipment
& lines & the potential for cost reduction“
• Navakrishna Akkineni, Solar Semi, "Experience with Indian
Manufacturers – Strategy & Opportunity"

14. Thank You