1. INDUSTRY RESEARCH
STUDY OF SOLAR PV INDUSTRY
Submitted to
PROF. K.K.SRIVASTAVA
By
GROUP M123
SRI HARSHA K
MOHAMED ARSHAD Y

3. 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.

4. 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

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

6. PV Solar Installations by Country

7. 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

8. 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

9. 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

10. GENERAL SKETCH
LOCATION CONCENTRATION

12. 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

13. TARGET MARKET
Residential sector (in KW’s & Stand alone)
Commercial sector (in MW’s & Stand alone)
Utility sector (in MW’s & Grid-connected)

14. 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.

15. 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

16. GEOGRAPHICAL

18. SIZE OF SEGMENTS
Type Installed Capacity (In MW) by
the end of 2012
Grid Connected Power 1176.25
Off-Grid (SPV Systems) 106.33

19. 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.

20. CORPORATE STRUCTURE
 MOSTLY SOLE PROPRIETORSHIP

21. 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