1

Not Just Power

An Analysis of Diverse Opportunities in the Solar PV
Value Chain

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Preface
As a renewable energy source, solar energy presents an exciting opportunity for India. While the current
contribution of solar energy to the total India's energy needs is insignificant, in the medium and long
run, it is expected that solar energy, especially solar PV will form a vital component of the country's
energy mix.

The most important barrier that had stopped Solar PV from becoming a mainstream renewable energy
resource is the high cost of producing power from the resource. This high cost is in turn a direct result of
the high capital costs of the solar PV panels and the balance of system required.

The good news is that the capital costs for solar PV panels are expected to decrease significantly over
the next 5-10 years. In addition, solar PV technology is continuously improving in terms of its efficiency.
As a result of this combination of capital cost reduction and efficiency increase, by 2015, solar PV is
expected to reach grid parity in some parts of the world and by 2020, in most parts of the world.

For India, the National Solar Mission and its incentives provide an additional reason for entrepreneurs
and investors to explore this industry. The convergence of decrease in capital costs, increase in
efficiency and significant financial support by the government is likely to result in a wide range of
attractive business opportunities along the entire solar energy value chain in India.

While solar power production is the final benefit derived from solar PV, an entire ecosystem is evolving
around this end “product”, and this ecosystem will result in a range of opportunities for a number of
industries, businesses and entrepreneurs.

This white paper titled Not Just Power provides inputs and insights on the diverse opportunities
available in the Solar PV industry. This has been prepared by Energy Alternatives India (EAI), a leading
consulting and research organization for the Indian renewable energy industry.

EAI is glad to be part of the 3rd Renewable Energy Hyderabad 2011 Conference which has a focus on the
exciting solar PV sector. We hope that this white paper will assist Indian entrepreneurs and businesses
in their efforts at exploring this sector.

EAI thanks Exhibitions India/Comet Conferences for providing the opportunity to present this white
paper as part of the conference, and wishes the very best for the success of the conference.

Narasimhan Santhanam
Director
Energy Alternatives India (EAI – www.eai.in)
Chennai

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List of Contents
1. Overview of the Solar PV Industry in India

1.1 Introduction
1.2 Status of Solar PV Technology in India
1.3 Future Potential

2. Solar PV Value Chain and Businesses Opportunities

2.1 Solar PV Value chain

2.2 Business Opportunities in Solar PV
2.2.1 Manufacturing Opportunities in Solar PV
2.2.1.1 Core Products
2.2.1.2 Non-core Products
2.2.2 Service Opportunities
2.2.3 Trading Opportunities
2.3 Solar PV Power Production – Alternative Business Models

3. Summary and Inferences

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1. Overview of the Solar PV Industry in India

1.1 Introduction
1.2 Status of Solar PV Technology in India
1.3 Future Potential

1.1 Introduction

PV constitutes a miniscule part in India’s installed power generation capacity with grid
connected solar PV generation less than 25 MWp as of Feb 20111. Off-grid installed capacity of
solar PV power plants including street lights are 100 MWp as of Sep 20102.

Today, PV installations in India predominantly comprise of small capacity applications. These

are most visibly seen in lighting applications (street lighting, and home lightning systems) in
cities and towns, and in small electrification systems and solar lanterns in rural areas.

But the potential is enormous for solar PV to become a key renewable energy power source for
India.

1.2 Status of Solar PV Technology in India

About 40 companies are actively engaged in manufacturing solar cells and panels, and many
more companies produce end products such as solar lanterns, street lamps etc. The production
in the country during 2009-10 is estimated to be about 230 MWp of solar cells and 325 MWp of
PV modules.3 Nearly 90% of the solar modules manufactured in India use crystalline silicon C-Si
technology, while only 10% of the solar modules are manufactured using thin film technology.

1
From respective company websites and news
2
MNRE
3
MNRE Presentation, Solar energy Conclave, Jan 2010

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Trends in Production of Solar PV Cells and Modules (MWp) in India

Trends in Solar PV Production

500
450
400
350
Production in MWp

300
250
200
150
100
50
0
2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
Solar Cells 20 22 25 32 37 45 110 175 229 300
Module 20 23 36 45 65 80 135 240 326 444
Source: MNRE Presentation, Solar energy Conclave, Jan 2010
Note: The values for 2009-10 and 2010-11 are projected/derived values and may be subject to variation.

As of end 2009, the cumulative production of solar PV cells in India has been about 800 MW. Of
this total, only a small portion has been used in applications within India, while the rest have
been exported. Of the total amount of solar cells cumulatively used in India, the following are
the areas in which they have been applied

Application of Solar PV Cells (MW) in India – Sector wise

Source: MNRE Presentation, Solar energy Conclave, Jan 2010

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1.3 Future Potential

Most experts agree that the solar PV market worldwide as well as in India will continue
accelerating significantly for the foreseeable future. The global PV market is estimated to be 2.5
times its current size by 2014, based on a slowest growth scenario, while a ‘production led’ fast
growth scenario would see annual industry revenues approach $100 billion by 2014.4

Currently, the Indian Solar PV manufacturing sector is export-led, and is much larger than the
country's total installed capacity. The manufacturing capacity of solar PV modules is further
expected to grow at a rate of 20 to 25 percent up to 2015 from about 1000 MWp as of 2009,
according to Frost & Sullivan.

In addition, the National Solar Mission’s target to achieve 20 GW by 2022, of which 50% will be
solar PV, and its plan to produce modules and cells domestically increases the need for
significant increases in module production capacity. Many states in India are also devising their
own, ambitious policies for solar PV power generation, with Gujarat being the most prominent
among the states.

Thus, there exists a huge manufacturing opportunity not only for the export market but also to
fulfill the NSM and state targets.

Similarly, India’s off-grid market has huge potential, especially in the areas such as rural
electrification, power irrigation pump sets, back-up power generation for the expanding
network of cellular towers across the country, captive power generation, urban applications
and highway lighting etc.

In addition to the government's initiatives such as Feed-in-Tariffs/Generation Based Incentive

(GBI) as part of the NSM, the incentives under the semiconductor policy, and other expected
incentives for the industry make the long-term prospects for this industry much brighter.

These targets and plans have potential to attract a variety of businesses in India, belonging to
diverse segments - manufacturing, installation, operation and maintenance, training and
engineering, procurement & construction (EPC) businesses, and more. The rest of this report
provides more insights on the opportunities for these diverse segments.

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Solarbuzz.com

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2. Solar PV Value Chain and Businesses Opportunities

2.1 Solar PV Value chain
2.2 Business Opportunities in Solar PV
2.2.1 Manufacturing Opportunities in Solar PV
2.2.1.1 Core Products
2.2.1.2 Non-core Products
2.2.2 Service Opportunities
2.2.3 Trading Opportunities
2.3 Solar PV Power Production – Alternative Business Models

2.1 Solar PV Value chain

The solar PV value chain consists of a number of specific and distinct steps from the production of silicon
to the end use in solar power plants or in solar panels used for distributed power generation (e.g. solar
panels on residence rooftops).

The Solar PV Power Value Chain

Silicon Suppliers

Wafer Manufacturers

Cell Manufacturers

PV Module Manufacturers

PV System Suppliers

Project Developers and End Users

Currently, the value chain in India starts only from cell manufacturing, but within the next
couple of years, we can expect some companies to be making ingots and wafers in India. Today,
Indian manufacturers depend almost entirely on import of silicon wafers or strips to make PV
cells.

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2.2 Business Opportunities in Solar PV

Business opportunities in solar PV are available in manufacturing, services and trading. Among
these sectors, the widest range of opportunities is present in the manufacturing sector, which is
followed by services.

In this white paper, an analysis of opportunities is undertaken for all three sectors viz.,
manufacturing, trading and services.

This analysis of business opportunities is, to a large extent, not country specific, but we have
provided some notes on the Indian scenario for each of the opportunities.

2.2.1 Manufacturing Opportunities in Solar PV

Manufacturing opportunities in solar exist in the production of both core and non-core solar
products and components

Core

 Polysilicon
 Ingot and Wafer
 Solar Cell
 Solar Panel
 Solar Products

Non-core

 Glass
 Electrical Components: Inverters, Wires and Transformers
 Solar PV System Manufacturing Equipments
 Chemicals for Solar PV System Production

2.2.1.1 Core Products

Polysilicon Manufacturing

The polysilicon is used to manufacture crystalline wafers for solar modules and around a
quarter of the cost of a crystalline module is just for polysilicon.

The world market of polysilicon has been growing 30-40% annually since 2004, primarily from
the growth in solar PV industry and around 90% of the total polysilicon market is dominated by
a few companies that supply around 90% of the total polysilicon market.

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No companies in India are into polysilicon manufacturing

Ingot and Wafer Manufacturing

The process of melting polysilicon into ingots and subsequently cutting them into wafers is
wedged between polysilicon production and cell manufacturing.

Polysilicon  Ingots and wafers  Solar cells

Yet, it is a distinct process that does not require physical proximity to upstream or downstream
processing. Consequently, some companies specialise in just doing that. Typically, ingot and
wafer manufacturing are done by the same company.

The wafer industry is dominated by a few (5) companies sharing over 90% of the market, with
Shin-Etsu and Sumco alone having a third each. There are however, many smaller companies
fighting for share.

In India, the government has so far reportedly received seven proposals adding up to
investments of about $16 billion to set up manufacturing units for polysilicon, single and multi
crystalline ingots, wafers, solar cells, photovoltaic modules, etc. Companies such as Lanco solar,
Bhaskar solar are reported to be known in this sector. Lanco Solar announced in early February
2011 that it was setting up a 250 MW integrated solar PV manufacturing facility in Chhatisgarh, which
presumably will include ingot and wafer production. In February 2011, Carborundum Universal also
announced its interest and plans for the silicon ingot and wafer industry.

Solar Cell Manufacturing

Cell manufacturing involves creating the all-important pn-junction, coating and layering. It is an
important step in the value chain responsible for about 20% of the total value addition, and it is
here where significant technical differentiation is created.

Crystalline Cell Manufacturing

Worldwide, there is an ever-growing number of cell manufacturers, and the industry is not
dominated by a few big players. The top 10 producers in 2008 produced just over 50% of the
total. The market leader, Q-Cells, commands a market share of 10%.

The production volume of the crystal silicon solar cell in 2009 was 10.7 GW —an impressive 51-
percent increase from the year before.5

5
http://bit.ly/eRqdwz

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Nine Indian companies manufacture solar cells, primarily crystalline cells (as of Nov 2010)

Thin-film solar cell manufacturing

Manufacturing thin-film modules comprises depositing photovoltaic material on a substrate,

structuring it into cells to form an electric circuit and wire and frame it depending on
application.

The key suppliers for the thin-film industry are chemical companies that produce high-purity
metals such as CdTe, GaAs etc. The supply chain is less constrained than that for polysilicon
(used in crystalline solar) and therefore much more reliable. This industry experiences a diverse
mix of big-hitters (Sharp), start-up companies and universities. Companies with a long-term
vision should start investing in this field.

This is a very dynamic segment with lots of startup companies, some venture-funded. There are
also a number of companies that also produce crystalline technologies. Those companies tend
to be in the amorphous silicon thin-film segment. The organic photovoltaics segment is mostly
covered by research institutes rather than private companies.

The production volume has increased steadily as 165 MW in 2007 and 357 MW in 2008. The
share of thin films is expected to increase significantly and expected to reach about 25% of total
in 2013. (EPIA data)

There are a few Indian companies such as Moser Baer and HHV Solar that make thin film solar
cells.

Concentrating PV

In concentrating PV (CPV), concentrators use optics to concentrate sunlight onto a small area of
solar cells, thus allowing for a decrease in cell size. Because a CPV module needs less cell
material than a traditional PV module, it is cost effective to use higher quality cells to increase
efficiency. However, the technology makes up a very small portion of the solar industry.

CPV system manufacturers assemble the solar cells, concentrator unit and heat sink to form a
module. Where applicable, companies will either integrate a tracking device or offer it as a
separate product for free-standing module installations.

As a rather recent technology (being commercialized), there are many new entrants, many of
whom are venture-funded.

The CPV market is estimated to reach $266.0 million in 2014 from about $63.9 million in 2009
There are only a few Indian companies like Square Engineering that produce concentrated solar
PV systems

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Solar Module Production

Module manufacturing involves putting assembling the cells into a module to form an electric
circuit. This is the last manufacturing step before it is distributed to wholesalers.

Initial estimates suggest that the worldwide photovoltaic installations in 2010 were about 17.5
GW – this is an almost 140% growth over the installations that happened in 2009, which was
7.2 GW. This pace of growth is expected to continue for the near future.

There are about 40 companies in India that produce crystalline solar modules.

2.2.1.1.1 Raw Material, Machineries and Equipments for Core Products

Opportunities exist in manufacturing raw material and equipment for the following:

 Ingots
 Wafers
 Cell
 Modules

Raw Materials

A wide variety of raw materials and starting products are required for the entire solar PV value
chain. This section provides inputs on the key raw materials and starting products required at
each stage of the value chain. These inputs will provide the entrepreneurs excellent insights
into the types of opportunities that could be most suitable for them, depending on their
current line of business and their competencies.

In the tables below:

1) The LEFT HAND SIDE column indicates the MAIN MATERIALS required for Manufacturing
2) The RIGHT HAND SIDE column indicates the sub components required for each material

Table 1: Raw Materials

Ingot

Main Materials Sub components to make the materials

Modified Siemens CVD reactor, Vapor-to-Liquid deposition reactor,
Polysilicon Fluidized bed reactor
Recycled Materials Broken Wafer, Top/Tail of Ingot
Crucible Quartz crucible, Graphite Crucible, Ceramic Crucible
Carbon Felt Carbon Felt
Other Seed Crystal

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Wafer

Main Materials Sub components to make the materials

Ingot Moncrystalline or Polycrystalline ingot
Saw Band Saw band
Black Silicon Carbide, Green Silicon Carbide, Recycled cutting liquid
Slurry Recycled Silicon Carbide
Saw Wire Saw Wire
Ingot Mounting
Adhesives Adhesives
Acids Sulfuric Acid, Hydrochloric acid

Cell

Main Materials Sub components to make the materials

Wafers Moncrystalline and Polycrystalline wafers
Metallization Paste Silver Paste, Aluminum Paste
Screen Screen
Isopropyl Alcohol, Ammonia, Phosphorus oxychloride, Sulfuric acid,
Chemicals hydrochloric acid, Potassium hydroxide, sodium hydroxide
Silane Silane

Crystalline Modules

Main Materials Sub components to make the materials

Ribbon Lead ribbon, Copper Ribbon. Lead free ribbon, tin coated copper ribbon,
Glass Ultra clear patterned glass, AR coated glass, TCO coated glass, BIPV glass
Film Back sheet, EVA
Cable Copper wires
Other Junction Box, Connector, Frame, Sealant and tapes

Thin Film Module

Main Materials Sub components to make the materials

Ultra clear patterned glass, TCO coated glass
Glass AR coated glass
Boron, Cadmium Sulfide, Copper, Alumina, Gallium, Germanium, Indium,
Chemicals Molybdenum, Phosphorus oxychloride, Tellurium, Tin
TCO Material Diethyl Zinc
Oxides Zinc Oxide, Tin oxide
Acids Hydrochloric acid, sulfuric acid
Other Junction Box, Connector, Cables, Frame, Sputtering Target

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Machinery and Equipments

This segment covers the manufacturing of turnkey production line solutions for the thin-film
and silicon module production as well as other manufacturing components such as wafers saws
or analysis tools.

The top global machinery and turnkey solution providers for the various stages are Oerlikon
Solar, Applied Materials and Ulvac Solar. There are also other players in the market, including
Roth & Rau, Centrotherm, Spire Solar, Anwell Technologies and Leybold Optics.

Indian companies are yet to make serious forays into machinery and equipment manufacturing
for the solar PV industry. A detailed list of machineries and equipments required for the various
processes all along the solar PV value chain is provided below.

In the tables below:

1) The LEFT HAND SIDE indicates the process involved
2) The RIGHT HAND SIDE indicates the equipments involved in each process

Table 2: Machineries and Equipments

Ingots

Process involved Equipments involved in each process

Life time Analyser, Ingot vision inspector, Resistivity Inspector, Material
Inspecting/Testing Property Analyser, Polysilicon Tester
Cutting & grinding Ingot Cutting Machine, Ingot Grinding Machine
Crystalline ingot
growing MCZ process equipment, DSS process equipment, CZ process equipment
Others Ingot Transportation and Storage Cart, Granular Feeder

Wafers

Process involved Equipments involved in each process

Cutting Equipment, Wire Saws, Band Saws, Silicon Recovery System
Cutting Slurry Recovery System
Cleaning Ultrasonic Wafer Cleaner
Life time Analyser, Wafer vision inspector, Resistivity Inspector, Material
Inspecting/Testing Property Analyser, Wafer Sorter, Wafer Counter, Wafer Tester
Polishing and
grinding Wafer Grinding equipment, Wafer Polishing Machine
Wafer Handling System, Conveyor, Automatic Water Loading Machine
Others Cassette, Water Separation Equipment

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Cell

Process involved Equipments involved in each process

Etching Laser Etching Equipment, Plasma Etching Equipment, Wet etching
equipment, Texturing Equipment, Power system and gas/Liquid Flow
Management System
Diffusion Diffusion Furnace, Waste gas Abatement system, Doping Equipment
Vaccum Pump for Diffusion, PreDiffusion Sprayer
Coating/Deposition Cell Coating Equipment, Cell Sputtering, Coating Control System
Cell PECVD system, Cell MOCVD, Cell CVD, Cell PVD, Cell AR coating
system.
Screen Printing Screen Printer
Furnaces Drying Furnace, Firing Furnace
Inspecting/Testing Cell sorter, Cell Tester, Cell vision inspector, Cell coating inspector
Others Cell Plating system, Cell handling system, conveyor cassette

Crystalline Silicon Modules

Process involved Equipments involved in each process

Inspecting/Testing Panel Solar Simulator, Environment Simulating Tester, Panel Cell
Position, String Measurement Equipment
Cleaning Glass Cleaner
Tabbing/Stringing Stringer, Tabber, Soldering Equipment
Laminating Laminator, Curing Furnace
Cutting/Scribbing Cell Laser Scribber, Cell Laser Cutter
Framing Framing Machine
Others Ribbon Cutter, Lay up station, Film Cutter, Silicone Dispenser, Ribbon
Flux Furnace, Panel Handling System.

Thin Film Modules

Process involved Equipments involved in each process

Inspecting/Testing Thin Film Solar Simulator, Thin Film Optical Inspection System, Thin
Film Thickness Measurer, Thin Film Time Analyser
Coating/Deposition Thin Film PECVD system, Thin Film Sputtering, Thin Film CVD, Thin
Film PVD, Thin Film AR coating system
Cutting/Scribbing Thin Film Laser Scribber, Thin Film Mechanical Scribber
Cleaning Ultrasonic Thin Film Cleaner
Etching Thin Film Laser Etching Equipment, Thin Film Plasma Etching
Equipment, Thin Film Wet etching equipment, Thin Film Texturing
Equipment
Source: ENF.cn, http://www.enf.cn/database/equipment.html

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The above tables provide a glimpse of the range of components, subcomponents and
equipments required to make the key products along the solar PV value chain. The list provided
is by no means exhaustive but is intended to make entrepreneurs acquainted with the diverse
opportunities.

Solar PV Products and Tailored Solutions

Apart from power production and manufacturing cells and modules, other business
opportunities using solar PV include the installation and maintenance of stand-alone/off-grid
systems for different sectors, and manufacturing solar PV based appliances.

A whole range of solar PV products is emerging in the off-grid sector. Some of the prominent
ones are solar lanterns, solar street lamps and solar powered water pumps. Other less known
ones are solar pool covers and pool heaters, solar fencings, solar candles, solar LED signals and
road studs etc.

While for many of these products the current market sizes are small, the growth rates are
expected to be high as larger sections of unelectrified India start yearning for the fruits of
electricity and the costs of solar panels decrease at a fast clip. Companies such as Tata BP Solar,
Selco, d.Light Designs are already developing innovative products for specific markets.

In addition, companies provide custom made solar solution for various sectors like, bank,
telecom, rural development, education and roads & highways. Some of these segments, where
installation services can be done in relatively small scale are:

Telecommunication Sector - BTS (Base Transceiver Station) sites require constant and
uninterrupted power for the safe operation of the network. Solar panels can be installed to
generate the required power.

Solar Water Pumps - Solar water pumping systems can be uses in a wide range of applications
from livestock watering to remote home or village water supply and irrigation.

Captive Power Generation – Diesel-based captive power generation is used extensively in the
country today to bridge power supply deficits and to overcome supply quality problems in
industrial, commercial and domestic applications. These can be replaced with solar power.

2.2.1.2 Non-core Solar Products

In addition to the core business opportunities in manufacturing available along the solar PV
value chain, there are non-core opportunities for entrepreneurs and investors in this industry.
We list the prominent non-core manufacturing opportunities below.

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Solar Glasses

For crystalline cells, solar glass is used for protection and performance enhancement. In the
case of thin films, glass is used as a substrate.

Worldwide, in 2007, 138 million tons of glass was produced. Of this, 50 million tons were flat
glass, which is used in solar modules and reflectors. The flat glass market is worth €21 billion
annually but, only four companies namely NSG Group, AGC, Saint-Gobain and Guardian
Industries produce around 60% of the world's high quality float glass.

Few companies in India currently make glasses for solar cells, and Saint Gobain is one of them;
the Indian arm of the French glass giant is making serious efforts at extending its glass products
to cater to the demand of solar panels sector. Recently, Gujarat Borosil launched solar grade
glasses in Dec 2010.

Electrical Components: Inverters, Wires and Transformers

The manufacturing of inverters, charge controllers, wires and transformers is largely a

commodities business.

In the case of inverters, efficiencies of these devices are already relatively high, offering only
limited room for technical differentiation. There are exceptions - for instance, Steca Solar of
Germany provides a solution to the problem of partial shading when solar modules become as
inefficient as under full shading. The global leaders in inverters are SMA Solar Technologies,
Kaco and Fronius.

In India, the transformer and wires are sourced locally. Inverter manufacturers like Su-kam,
Luminous and Numeric are yet to fully start producing inverters for grid connected power
plants; hence, as of Feb 2011, the inverters for MW scale solar PV power plants are mostly
being imported.

Manufacturing Chemicals for Solar Industry

The manufacturing of photovoltaic modules, thermal receivers and reflectors requires a

number of chemicals and materials such as coatings, laminates, photovoltaic materials and
solar glass. Some of these chemicals have been listed in Table 1 under Cells.

Production of many of these chemicals also offers opportunities to Indian companies already in
the chemicals industry.

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2.2.2 Service Opportunities

Significant opportunities exist in the service sector as well, and these could benefit
entrepreneurs with diverse skill sets. We provide a list of service opportunities here.

 Financing Support
 EPC
o Project Development Support
o Design and Engineering Support
o Construction and Commissioning Support
o Operation and Maintenance
 Training Support
 Others

Financing Support

Due to high capital requirements for solar power generation, few large projects are financed by
the sponsor's balance sheet. Instead, tailor-made financing is achieved through project finance.
Support from the relevant finance experts will be required at this stage.

EPC (Engineering Procurement and Construction) Services

EPC contractors can provide the following services and supports:

Project Development Support

This phase consists of

 Assessment of the customer's needs and objectives;
 Identifying potential sites for a solar farm, acquiring land and securing the rights to use
the site for the generation of solar electricity.
 Securing permits to construct, connect, integrate and operate the plant.

In most instances, project developers will also be involved in arranging financing as well as
design and construction.

Design & Engineering Support

Every site has its own specific characteristics including geographic location and solar radiation
level, site topography, local regulations and requirements for grid connectivity. During the
Design & Engineering phase, the optimal structure and choice of components will be
determined, based on all input factors. This will require support from specialized experts.

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Construction & Commissioning Support

The physical construction begins after the design phase and ends with the act of commissioning
when the facility is handed over to the operator, which is in most instances a different
organization. Construction companies will find opportunities in this phase.

 Small Installations - Small installations for residential rooftop applications are

implemented by local installers and electricians directly. Module manufacturers and
distributors often maintain lists of certified installers nationwide. This is a very
fragmented segment of the value chain with very few companies that operate at
national level, let alone globally.
 Large Installations - Big projects undergo various stages of development even before
construction can begin. Generally, this is a high-margin segment with some companies
that are operating globally.

Operation & Maintenance

This stage begins after the construction phase. Operation & maintenance includes activities
such as facility monitoring, cleaning solar glass, breakdown management, repair work and
warranty management.

Training and Support

MNRE has estimated that in order to achieve the target of 20 GW by 2022, over 1, 00,000
skilled solar professionals will be required, comprising multiple skill sets. This presents a
significant opportunity for businesses that can impart skill sets at various levels such as system
design, project management, installation and maintenance.

Other Service Opportunities in Solar PV

Software: A number of software companies offer solutions specifically tailored to the solar
market. There are three main categories

 Forecasting Tools: Mainly for planning purposes, simulation software applications can
assist both upstream and downstream players as well as end-customers.
 Manufacturing Support: Enterprise tools like SAP offer PV-manufacturing components
to help manufacturers optimize their business processes.
 System Control: Software that helps measure and monitor the solar generating system,
the output of which can be used to optimize the facility. Photovoltaic system monitoring
is a combination of hardware (dataloggers) and software tools. Yield analysis is usualy
also part/task of such monitoring system. Standard options are local or remote
monitoring (via web for example). In India, companies such as HCL Technologies and
Wipro Eco-energy have already developed embedded software for solar power plant
monitoring.

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2.2.3 Trading Opportunities

Significant trading opportunities exist for retail solar products such as solar lanterns and other
solar based lighting products for the mass market. This sector currently small, but growing fast.
Attractive market segments for these are in the rural and semi-urban areas (smaller towns and
cities) where there are more regular and long-duration electricity cuts. Trading of solar street
lamps could be considered as business opportunities for those who have prior experience in
selling to governments and municipalities.

In the context of solar PV power production, trading opportunities currently exist primarily for
trading of solar panels and balance of systems for the retail market. Currently, this trading
market is not well structured due to the nascent stage of the industry, but in the near future it
is expected that there will be opportunities for wholesalers and retailers to target the
institutional and retail markets for solar PV panels/systems.

2.3 Solar PV Power Production – Alternative Business Models

Evolving Business Models

While new energy technologies come up all the time, technology is not the driver of the energy industry.
The driver is the business model: how you get it financed and how you apply traditional risk-
management methods to solar and wind and biomass.
- Jigar Shah, Founder of SunEdison

Within solar power production, there are many business models coming up, and third party
ownership is one of the business models that appear to hold good promise for the future. In
such a business model, a third party will be responsible for designing and installing solar panels
on the rooftop of the host (the host can either be an individual or community), whose rooftops
are leased to install panels. In turn, these hosts sign a power purchase agreement with the third
party for certain years.

Another model that has potential is the BOT (Build Operate Transfer) model in which the
service provider takes care of implementation, operations and maintenance of a rooftop solar
power plant for a determined period, after which the asset is transferred to the owner of the
rooftop.

SunEdison’s solar Service Model and Community Solar Power Model are some of the examples
of this interesting model. You can get to know more about this model from
http://www.sunedison.com .

Currently these models are not followed in India, but with the possibility of attaining grid parity
in a few years time, these models could be an exciting business opportunity.

Energy Alternatives India – EAI

http://www.eai.in
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3. Summary and Inferences

This white paper was developed in order to highlight the diverse opportunities available for
entrepreneurs and businesses in the solar PV industry.

The following are the key inferences:

 Solar PV power production represents the most prominent opportunity segment. But
while the grid connected power production is in the limelight most times, attractive
opportunities are emerging for entrepreneurs in the off-grid segment as well
 Some emerging models in solar power production could considerably reduce the risk of
adoption and be a win-win for all parties involved.
 Significant opportunities exist beyond power production, in which companies in all
sectors – manufacturing, trading and services – could play a role.
 Opportunities along the solar PV value chain exist for all sizes of businesses – small,
medium and large.
 Specific industries that could benefit from these diverse opportunities include electrical,
chemical, software, construction/EPC service providers with equipment installation and
maintenance capabilities, and engineering and design firms.

It is imperative that the Indian entrepreneur analyzes these opportunities before making an
investment into the fast growing solar PV industry in India. In addition, we recommend that the
entrepreneur gets updated on the emerging trends and case studies in other countries,
especially Germany, Spain, Italy, Japan and the US.

All the Best!

For more details on each of the above opportunities and how your company can benefit from
these, please talk to:

Madhavan Nampoothiri
Senior Consultant, EAI
[email protected]
Mob: 9884829214

Visalakshi Jayaraman
Senior Research Analyst, EAI
[email protected]
Mob: 9840117414

Energy Alternatives India – EAI

http://www.eai.in
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Energy Alternatives India – EAI

http://www.eai.in