industrial research solar pv industry
TRANSCRIPT
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