How To Setup 5MW 10MW Solar PV Module Manufacturing Unit - Complete Business Model

5MWp
/10MWp
Solar PV Module
Production Unit
Total Business Model
A complete analysis & assessment have been done which can be utilised as bankable DPR.
The whole process of setting up a solar PV Module Production Unit and the required
business model have discussed in detail. Also The Market Analysis, Financial aspects,
Marketing strategies can be found in this article.
amrit.mandal0191@gmail.com
info@ohmsolar.co.in
Acknowledgement
Right now solar PV market is booming thanks to our Govt. support
which is constantly coming up with new & attractive energy policies.
In india, a lot of new companies are starting as system integrator,
EPC service providers. But, compared to these service providers, the
number of Solar PV Panel producing companies is very few. So in this
paper, Ill discuss about the technology & financial aspect of setting
up a Solar PV Module production unit in detail. The reader can find
about the detailed overview of machineries involved, total
investment required, how to deploy the marketing team, details of
production team HR structure and benefits related to the products
and a layout to setup the production unit.
This paper/project report will be adequate to prepare a bankable
DPR also. The most important thing is how to do the marketing and
the related scope. Keeping this in mind, the report enlightens this
particular topic with more detail.
Table of Contents
Market Analysis....................................................................................................................................... 3
Solar PV Project Scenario .................................................................................................................... 3
Indian Market Overview ..................................................................................................................... 6
Technical Details Overview, Instruments, Raw Materials, Layout ....................................................... 8
Required Materials & their specification: ........................................................................................... 9
Technical Details of the Manufacturing Instruments ....................................................................... 11
Plant setup: ....................................................................................................................................... 19
Production Unit Layout/Floor Plan ............................................................................................... 19
Process Flow: .................................................................................................................................... 20
Financial Analysis Investment, Payback, Break Even & more. ........................................................ 21
Mode1 For 5MWp yearly PV Module Production Capacity............................................................ 21
Payback Analysis ........................................................................................................................... 22
Return of Investment Analysis ...................................................................................................... 23
Break Even Analysis....................................................................................................................... 24
Mode2 For 10MWp SPV Module Production Capacity .................................................................. 26
Investment & related: ................................................................................................................... 26
Cash Flow & Net Profit .................................................................................................................. 26
Investment Payback Analysis For 10MWp production unit .............................................. 27
ROI Analysis:.................................................................................................................................. 28
Break Even Analysis....................................................................................................................... 29
Marketing Strategies ............................................................................................................................. 31
About Me: ............................................................................................................................................. 32
Market Analysis
Solar PV Project Scenario
The charts presented below will give an overview of already commissioned/installed solar projects in
the major countries by 2014, March.
Installed Plants
400
350
300
250
200
150
100
50
0
United States
China
Germany
India
United
Kingdom
Spain
Italy
Installed Capacity
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0
Now, lets take the value from the chart about the India. According the presented chart, currently the number of
installed Solar Power Plants (cumulative) is 184 & the respective capacity is equals to 1975MWp. So, just for the
ease of understanding, lets consider these all power plants used 250Wp Poly-Si PV Panels which means the total
number of 250Wp PV panels used is equals to 7,900,000 or 7.9 millions number of 250Wp PV Panels.
Now, with same consideration, For China it is = 18,840,000 or 18.84 millions of 250Wp PV Panels
For United States, it is = 25,680,000 or 25.68 millions of 250Wp SPV Panels
And for the listed 7 countries in total, it is = 83,000,000 or 83 millions of 250Wp SPV Panels.
Now, lets see the up-coming or proposed or under development projects (June,2014 to
March,2015) in these same countries:
Nos of Proposed Plants

Spain
Italy
United
Kingdom
United States
India
Germany China
Nos of Proposed Capacity
United States
China
Germany
India
United Kingdom
Spain
Italy
So, Upcoming demand of Panels in India = 22.30 millions of 250Wp SPV Panels (19%)
Upcoming demand in China = 24.04 millions of 250Wp SPV Panels (20%)
Upcoming demand in United States = 56.72 millions of 250Wp SPV Panels (48%)
Total demand in those 7 countries = 118.17 millions of 250Wp SPV Panels (100%)
Lets have a look on the target set for 2020 by the leading countries in this Solar PV Energy Market:
60
50
40
30
20
10
0
China
Target in GW
USA
India
Germany
Italy
Installed Capacity as on dec, 2013 (GW)
United
Kingdom
Japan
Rest of the Target (GW)
So from the above chart we can estimate the upcoming demand of solar PV Panels in those
countries. The estimates are
Country
China
USA
India
Germany
Italy
United Kingdom
Japan
Project by 2020 (GW)

31.7
18
17.7
16.5
5.4
20.3
19.4
SPV module demand

by 2020* in millions)
126.8
72
70.8
66
21.6
81.2
77.6
*just like the previous calculation, here also the 250Wp Poly-Si PV Panels have been considered.
Indian Market Overview:

State Wise target under JNNSM scheme & other State Govt. Policies :
State
Target By the year
Proposed Allocations in 2014
Uttar Pradesh
Uttarakhand
Karnataka
Rajasthan
Punjab
Tamil Nadu
Chandigarh
Odisha
Madhya Pradesh
500MW by 2017
500MW by 2017
200MW by 2016
750MW by 2017
1000MW by 2022
3000MW by 2015
1000MW by 2017
135MW by 2015
800MW
300MW
50MW
50MW
None
300MW
None
100MW
20MW
100MW
Existing Solar PV Module Manufacturing Company

Company Name
Production Capacity
Per year (in MW)
Company Name
Production Capacity Per

year (in MW)
Access Solar
Ajit Solar
Ammini Solar
Amro Technology
Akshaya Solar
Alpex Solar
Aroma Renewable
Energy
Andromeda Energy
Technology
Cira Renewables
Deshmukh Solar
Divakar PV Solar
Ecosol Power
Electromac Solar
Empire Photovoltaic
EMMVEE Photovoltaic
Enfield Solar Energy
Evergreen Solar
Goldi Green
HHV Solar Technologies
ICOMM Tele Ltd
JJ PV Solar
KCP Solar Industry
KL Solar
Kohima Energy
Lubi Electronics
Kotak Urja
Lanco Solar
NEASE
Novergy Energy
Photonix Solar
PLG Power
15
20
1
2
6
60
2
Premier Solar
Rajratna ventures
Radiant Solar
Rashmi Industries
REIL
Sahaj Solar
Shan Solar
8
20
0.5
30
2.5
0.4
30
Shivam Solar
25
3
100
15
10
24
8
135
5
20
100
35
15
15
16
30
50
25
20
75
20
37
15
18
SLG Solar
Sun Energy System
Sun Solar Techno
Sungrace Energy
SVL
Synergy Electric
TES
Tapan Solar
TATA Power Solar
Titan Energy Systems
Topsun Energy
Trom Solar
UPV Solar
Vega solar
Vikram Solar
Vinova Energy
Vipul Enterprises
VJ Solar
Waaree Energies
Vorks Energy
XL Energy Systems
Websol Solar
5
18
2.5
10
140
35
5
20
100
110
70
1.2
12
14
48
1
50
5
250
3.5
15
25
Indian Market Analysis & Scope of New Production Unit

Total Production Capacity Per Year in Indian Market
Total Production by 2020 (considering yearly yield at
fixed value)
Demand in Indian market by 2020
Extra Production Capacity required per year
2GW (around)
14GW
17.7GW
620MW
Global Market Analysis & Scope of New Production Unit

Considering the Global Market, demand per year
Installed production unit all around the world
Excess Solar PV demand per year around the world
26GW
16.7GW
9.3GW
Benefits for Indian PV Module Production Company:

Large scale projects are going on or proposed to be executed very soon in India
Residential/ domestic applications have increased by nearly 40% by 2013
A big opportunity to export solar PV Module to global market
The countries which are now in 1st phase of Solar energy implementation, preferring Indian
companies more
Small scale projects like solar irrigation, rooftop solutions, micro & mini grids etc. are in
their peak demand now and will increase more in the coming years
Indian Govt. recently announces some great policies and relaxation in tax duties which is a
very good indication for high profit may be attended by exporting solar PV Panels to global
market
**Though the current cumulative capacity of India is 2GW which the highest capacity can be achieved, many of these
production/assembly units work as OEM or subsidiary type.
For an example, suppose there is a company XYZ in India with production capacity 100MW/year and there is another
production company ABC with a production capacity n MW/year where n may be less or greater than 100. It may
happen that at any time ABC company get an order larger than there current production capacity nMW/year or
(n/12)MW/month. Then ABC would approach to XYZ and give them a portion of ABCs work order where the panels will
be manufactured at XYZs factory under the name plate & brand name of ABCs.
So, the point is that the actual manufacturing or production capacity is always 60-70% of the highest (which is 2GW for
India)
Technical Details Overview, Instruments, Raw Materials, Layout

Overview:
This document will discuss about the mainly 5MWp & 10MWp Panel Production line with an
option of turning it into 10MWp & 20MWp yearly production capacity.
The technical discussion will consist of instrument details, materials & components to produce
the Solar PV Modules, operational details, floor plan and the basic process flow of the production
line.
Required Materials & their specification:

For 250Wp Modules (as an example)
Materials
Specification
Remarks
Solar Cell:
Importance:
Conversion efficiency: >16%

Rated Power: 4.08Wp
Imp: 7.94A
Isc: 8.41A
Vmp: 0.519V
Voc: 0.62V
Dimension: 156x156mm2 (LxW), T= 0.2mm
Power Co-Efficient: 0.405 0.05%/0C
Ethylene Vinyl Acetate (EVA) Film:

Thickness: 0.45-0.625mm
Tensile: 8.5MPa
Elongation: 800%
Dielectric Strength: 49.9KV/mm
Refractive index: 1.49
Surface resistivity: 8.1x1012 ohms
The key component, the

main and most important
basic building block of
Solar PV Module & Panels
Used For:
High Stability against
Damp heat
High light transmission
Optimizing the bond
strength with bond glass
and backsheet.
Highest protection &
encapsulation against UV
and weathering.
Solar Glass:
Importance of Solar glass:
Dimension (max): 2134mmx2134mm or

3000mmx1830mm
Thickness: 3.2mm
Solar Energy Transmittance: 91%, 300~2500nm
wavelength range
Protection from
Weathering & outside
objects
A wide spectrum of light
for solar cells to operate
Stability against UV
Used For:
To create the PV busbar
over the solar cells
To connect the cells in
electrically series-parallel
connection
Soldering ribbon:
Type1 PV Busbar ribbon (3mmx0.2mm; WxT)
Type2 Interconnect ribbon (1x0.08 mm2;WxT)
Conductor Material: ETP/DIP/OFC form
Tensile strength: 250N/mm2
Elongation: 20%
Camber: 0.5% (5mm on 1m length)
Thermo Plastic Elastomer (TPE) Back sheet:

Construction type: PVF/PET/PE
Thickness: 0.25mm
Length: 100 meters per roll; width: 1.2m max
Peel Strength PET/PVF: 6N/10mm
Peel Strength PE/PET: 10.5N/10mm
Peel Strength PET/EVA: Destruct
Dielectric Strength: 15.55KV
Moisture Permeability: 3.1g/m2/day
Partial Discharge: 1000VDC
Importance of TPE backsheet:

Improved module eff.
High gloss surface to
increase solar reflectance
Easily cleanable
Higher stability under
damp heat & freze thaw
conditions.
Very strong tear-bond to
EVA
Chemically resistant
Module Frame:
Dimension: 1638x982x40mm (LxWxH); 50mm
end-end gap in L & W.
Material: Anodized Aluminium Alloy
Junction Box:
Used For:
To give a structural solid
usable shape to solar PV
module & to create a
Solar PV Panel
Importance:
Protection class: IP67/IP65

Bypass Diodes: 3 diodes
Cable (Optional):
2
Thickness: 4mm
Length: 1000mm (650mm optional)
Voltage range: 1.5KV DC/(1.2/1.0)KV AC
Max Voltage tolerance: 6.5KV for 5mins
Operating temperature range: (-400 to 1200C)
Safe pulling force: 50N/m2
MC4 connector
Type: Male-female coupler interlocking (snapin)
Protection class: IP65 (as per NEC - 2011)
Rated current max: 30A
System Voltage Max: 1000V
Operating temperature range: (-400 to 1200C)
Sealant:
Consistency: Paste
Polymer: 100% Silicone
Hardness: 30
Peel Strength: >35 pil
Movement capability: 25%
Operating temperature range: (-480 to 1200 C)
To complete the
electrical circuit of solar
cells & make it ready to
use as power generation
module
To maintain the electrical
safety
Used For:
To connect to other PV
modules in the
string/array
Importance:
To connect to next
Module
To complete the string
To connect to
inverter/charger device
To maintain the electrical
safety in the system
Used For:
To seal the
envelope/frame
To fix the JB on the back
side of Panel
To make the Panel
weather proof
As far now, I hope that readers will get a clear idea about the basic components required to make a
solar PV Module. Next, Ill present the technical details of the equipment required to
Assemble/Manufacture a Solar PV Module. Ill show you the details & the related mechanism of
Machines/equipment used in 5MWp & 10MWp yearly production capacity based units and how to
double the production capacity when required.
So, please proceed to next part of this document.
10
Technical Details of the Manufacturing Instruments
Automatic Solar PV Module Laminator

Image source: www.reoo.net
Dimension
Laminating Area (WxLxH)
Control mode
Control System
Laminating time
Heating Mode
Temperature Control
Temperature Uniformity
Temperature control accuracy
Temperature control range
Pumping Rate
Heating rate
Vacuum rate
Silicone sheet size
Lid Opening
Production capacity
2.2x3.6m2
2200mm x 3600mm x 25mm
Manual / Automatic
PLC (); HIMS: Touch Screen ()
2-4 minutes (excluding solidification time)
Oil heating with flow pressure 0.28~0.32MPa
PID based
1.50C
1.00C
300C - 1800C
70 Lps
1350C at room temp. with 50-60 minutes
200Lps
3800mm x 2400mm, 5mm thickness
Straight from hydraulic (200mm max height)
(this equipment is for laminate solar glass, EVA, Solar cell & backsheet)
Mode-1 (Single shift; 8hours a

day)
Mode-2 (Double shift; 16hours a
day)
Comp. air pressure required
Total Power Consumption
(Rated/Actual)
250Wp x 3pieces/time x 3times/hour x 8 hours

x 300 days = 5.4MWp/year
250Wp x 3pieces/time x 3times/hour x 16
hours x 300 days = 10.8MWp/year
0.6 1.0 MPa
75KW/38KW (3-ph, 5line; 50Hz)
11
Solar Cell Tester :

Required to sort solar cells according to their electrical performance under a test condition of
simulated sunlight (variable irradiation value e.g. 100W/cm2 , 80W/cm2, 120W/cm2).
Testing Area/range
Illumination uniformity
Single flash time
Test period
Testing Parameters
Power Supply
200x200mm/ 0.1 5Wp

3%
10ms
3 second for each cell
Isc, Voc, Pmax, Vmp, Imp, FF, EFF, Temp, Rs,
Rsh
1KW, 230V, 50Hz (1-ph)
Solar PV Module Tester:

To measure I-V characteristics and other electrical parameters of poly & mono crystalline PV
Modules
Effective test area/test range

Uniformity of test result
Single Flash time
Testing Parameters
Power Supply
2000 x 1100 mm/ 5W to 300W

3%
10ms
Isc, Voc, Pmax, Vmp, Imp, FF, EFF, Temp, Rs,
Rsh
3KW, 230V, 50Hz (1-ph)
12
Electro-Luminance (EL) Tester:

Required to inspect the solar PV Module for secluded split, cracked cell, rosin joint, wire break &
defects
Module testing capacity

Maximum current
Maximum Voltage
Inspecting camera resolution
Time of exposure
Required temperature
Permissible Humidity
Power
2100mm x 1200mm
10A
60V
14000x1040 pixel
0.1 25.5 seconds (Adjustable)
100C - 300C
20 70%
2KW, 230V (running condition)
Glass Washing Machine:

Using to dry Solar PV Glass automatically & efficiently to improve the Solar Panels quality
Max permissible width of glass

Minimum length of glass
Applicable thickness of glass
Number of brushes
Air Knife
Frequency converter
Air blower rating
Water pump power rating
Working Speed
Actual power consume
1200mm
200mm
1.8 8mm
2 pairs
2 tricks
Delta VFD
2x11KW
2x0.75KW, 0.55KW
2m/min
10KW (running condition)
13
Framing Machine:
Required to fix solar Module frame and seal the 4 corner of the frame
Maximum Module dimension

Difference of diagonal line difference
Power Supply
2000mm x 1100mm
1.5mm
Single Phase
EVA, TPE back sheet cutting station:

This is actually a table with a tough top for
cutting EVA & TPT back sheet for solar panels
Working table dimension
220 x 1100mm
Solar cell Soldering station:

The soldering station includes operating platform with power distribution board, heating platform
and its control system. Soldering template for both single cell soldering and string soldering.
2 set Single soldering heating plate and

controller.
1 set String soldering heating plate and
controller.
1 pcs String soldering model plate 125 x 125
.
1 pcs String soldering model plate 156 x 156,
2 bar lines.
1 pcs String soldering model plate 156 x 156,
3 bar lines.
3 pcs Intelligent lead free electrical iron.
3 pcs working chair.
14
Operating platform dimension
1800 x 1200 mm
Electric Iron:
Heating by high frequency vortex, special sensor can accurately rapid control iron the soldering
temperature.
Dimension(WxLxT)
Operating temperature of iron
Temperature stability
Dormant time
96mm x 135mm x 160mm

1000C 5000C
20C
0~99min
Soldering ribbon cutting machine:

The machine can level the ribbon, which in term
can improve the quality of soldering.
Module transfer Carrier:

Hand truck for transportation of Glass / Modules
/ Panel at different stage of production
Ready Material Carrier:

Hand truck for transporting the finished laying
up module to be laminated, carry 10 pcs 300W
solar panel with proper protection.
15
Laying up station:
Provide horizontal surface to lay up the solar cell
string, Stack solar cell string, tempered glass,
EVA & back sheet and wire the solar cell string
with ribbon.
Visual Inspection Station:

For inspection of the finished lay up solar
module before laminating
Edge Trimming Table:

Table for trimming the EVA & TPT around the
panel after lamination. Support 300w panel,
Include the electrical knife.
Cleaning table:
Table for cleaning the surface of the finished
module.
Dimension: 1200X800X800mm,
Support 300w panel
Cell sorting Station:

Working table for select out solar
cells from the faulty one. And
classification the solar cell for solar
production.
Dimension :1200X1200X800mm
16
Lacer Dicer:
The small solar module need
made by small solar cell. such as
the solar module under 50W
Compressor:
Used to generate compressed air for laminator,
Framing machine, Solar cell tester and other
pneumatic equipments
Total power: 7.5 KW, 380V/50Hz, or according
customers need.
Capacity: 1.2CBM /s
Pressure: 1 Mpa
17
18
Plant setup:
Total Space required
Power Source
Air conditioning
Compressed air source
Environment
Water supply
Condition of Stock room
935m2
3-ph 5 line 50KW for 5MWp & 100KW for 10MWp yearly
production capacity
Should be maintained at 250C until the lamination process
Max 1.2MPa
Dust-proof, enclosed
To a small extent
Ambient temp at 250C with controlled humidity
Production Unit Layout/Floor Plan

Module tester
Laminator
Interconnection
Stringer
Layup station
Cell testing
Glass washing
19
Process Flow:
20
Financial Analysis Investment, Payback, Break Even & more.

Before We Proceed:
Before we get into more further of financial analysis, we need to keep some points in consideration:
1. To setup this production unit of 5MWp (/10MWp) yearly capacity, the initial investment or the
setup cost is 115,000USD (69Lakhs INR)* as per the Indian & Asian market.
2. The major turnkey solution providers of this production line are from China, Italy, German, India
& USA
3. Using the described production line above, one can produce Poly-crystalline & Mono-crystalline
solar PV Panels ranging from 1Wp to 300Wp.
4. This part of the discussion will be divided into 2 parts namely Mode1 (for yearly 5MWp capacity)
and Mode2 (for yearly 10MWp capacity).
Mode1 For 5MWp yearly PV Module Production Capacity

Investment & related:
Initial Investment
115,000USD
Yearly Production Capacity
5MWp SPV Modules (single shift, 8hrs/day)
Number of shifts
Single shifts, 8 hours/day, 300 working days/year
Production Unit staffs
9 (7 technicians + +1 supervisor + 1 Production Engineer)
Marketing & Sales team staffs
14 (12 Mktg Executives + 1 Re. Manager + 1 GM)
After Sales team staffs
Admin + Office staffs
4 (1 admin + 1 accountant + 1 CCE +1 HR Exc.)
Yearly utility bill + expenses
15,350USD
Office & plant space rental
1,000USD
Cash Flow & Net Profit

Yearly Production
Cost of raw materials
Finishing into saleable product cost
Average sale price
Yearly expenses in Staffing & HR
Yearly expenses Utility, rental & others
Yearly Production cost
5MWp SPV Modules
Yearly average sales (of 5MWp)
3,200,000USD
0.35USD/Wp
0.08USD/Wp
0.64USD/Wp
77,000USD
18,000USD
2,150,000USD
21
Now, as a business model, when One is going to start the business of Solar PV Module
Production/manufacturing & marketing, then the actual investment at the beginning is required :
22,12,000USD (for the very first year)
*This investment amount is based on the 10 different solution providing companies from different
countries.
Payback Analysis
Year:
$30,40,000
$28,88,000
$28,01,360
$27,70,545
$27,70,545
Relevant benefits:
Incremental Value of New Business
$32,00,000
$27,70,545
Relevant controllable costs:

Executive Salaries & Bonus
Direct Labor Costs
Materials Costs
$77,000
$82,390
$88,157
$94,328
$97,158
$98,130
$99,111
$4,00,000
$4,12,000
$4,24,360
$4,37,091
$4,50,204
$4,63,710
$4,77,621
$13,69,826
$17,50,000
$16,80,000
$16,12,800
$15,48,288
$14,86,356
$14,26,902
Advertising
$5,000
$5,000
$3,000
$3,600
$4,320
$5,184
$6,221
New Recruitment process
$2,000
$4,000
$5,200
$6,760
$8,788
$11,424
$14,852
Market research expenses
$25,000
$25,250
$25,503
$25,758
$26,015
$26,275
$26,538
$0
$5,000
$5,000
$5,000
$5,000
$6,000
$6,000
$18,000
$19,800
$19,800
$21,780
$21,780
$23,958
$23,958
Total costs
$22,77,000
$22,33,440
$21,83,820
$21,42,605
$20,99,621
$20,61,583
$20,24,127
EBITDA
Incremental maintenance
Other Costs
$9,23,000
$8,06,560
$7,04,180
$6,58,755
$6,70,924
$7,08,962
$7,46,418
Less: Depreciation
$2,21,200
$2,21,200
$2,21,200
$2,21,200
$2,21,200
$2,21,200
$2,21,200
Income before taxes
$7,01,800
$5,85,360
$4,82,980
$4,37,555
$4,49,724
$4,87,762
$5,25,218
Less: Taxes
$49,126
$40,975
$33,809
$30,629
$31,481
$34,143
$36,765
$6,52,674
$5,44,385
$4,49,172
$4,06,926
$4,18,243
$4,53,618
$4,88,453
Plus: Depreciation
$2,21,200
$2,21,200
$2,21,200
$2,21,200
$2,21,200
$2,21,200
$2,21,200
Minus: Investment
$22,12,000
$0
$0
$0
$0
$0
$0
Net Cash Flow
($13,38,126)
$7,65,585
$6,70,372
$6,28,126
$6,39,443
$6,74,818
$7,09,653
Cumulative Net Cash Flow
($13,38,126)
($5,72,541)
$97,830
$7,25,957
$13,65,400
$20,40,218
$27,49,872
Undiscounted payback period:
2.75 Years
Discount Rate
10%
Discounted Cash Flow
($12,16,478)
$6,32,715
$5,03,660
$4,29,019
$3,97,044
$3,80,917
$3,64,164
Cumulative Discounted Cash Flow
($12,16,478)
($5,83,763)
($80,103)
$3,48,915
$7,45,959
$11,26,877
($12,16,478)
Net income
Discounted payback period:
3.04
Years
22
Return of Investment Analysis

Total
Expenditure
Year
0
1
2
3
4
5
6
$22,44,000
$21,98,130
$21,46,038
$21,02,178
$20,57,982
$20,19,528
Cumulative
Expenses
22,44,000
44,42,130
65,88,168
86,90,346
1,07,48,328
1,27,67,856
1,27,67,856
Sales
$32,00,000
$30,40,000
$28,88,000
$28,01,360
$27,70,545
$27,70,545
1,27,67,856
Comulative
Sales
32,00,000
62,40,000
91,28,000
1,19,29,360
1,46,99,905
1,74,70,450
1,74,70,450
1,74,70,450
ROI:
36.8%
$35,00,000.00
$30,00,000.00
$25,00,000.00
$20,00,000.00
$15,00,000.00
$10,00,000.00
$5,00,000.00
$Year1
Year2
Year3
Total Expenses
Year4
Year5
Year6
Targeted Sales
23
Break Even Analysis

Breakeven Point (units):
437
Sales volume analysis:

Sales volume
per
month(units)
167
333
500
667
834
1,000
1,167
1,334
1,500
1,667
175
175
175
175
175
175
175
175
175
175
175
20,750
20,750
20,750
20,750
20,750
20,750
20,750
20,750
20,750
20,750
20,750
0.00
21,254
42,508
63,762
85,017
1,06,271
1,27,525
1,48,779
1,70,034
1,91,288
2,12,542
Total costs
20,750
42,004
63,258
84,512
1,05,767
1,27,021
1,48,275
1,69,529
1,90,784
2,12,038
2,33,292
Total sales
0.00
29,172
58,345
87,517
1,16,690
1,45,862
1,75,035
2,04,207
2,33,380
2,62,552
2,91,725
20,750
12,831
-4,913
3,004
10,923
18,841
26,759
34,677
42,596
50,514
58,432
Sales price per

unit
Fixed
costs/month
Variable costs
Net profit (loss)
Unit Contribution Margin
Unit
contribution
margin
27%
Variable costs
per unit
73%
Variable Costs Per Unit

Supplies per unit
10%
Shipping per unit
0%
Direct material
per unit
16%
Other
variable
costs per
unit
6%
Commissio
n per unit
68%
24
Break Even Analysis Chart

3,50,000.00
3,00,000.00
2,50,000.00
2,00,000.00
1,50,000.00
1,00,000.00
50,000.00
0.00
1
10
11
(50,000.00)
Fixed costs per period
Total costs
Total sales
Net profit (loss)
25
Mode2 For 10MWp SPV Module Production Capacity
Investment & related:

Initial Investment
115,000USD
Yearly Production Capacity
10MWp SPV Modules
Number of shifts
Double shifts, 16 hours/day, 300 working days/year
Production Unit staffs
18 (14 technicians + +2 supervisor + 2 Production Engineer)
Marketing & Sales team staffs
22 (18 Mktg Executives + 3 Re. Manager + 1 GM)
After Sales team staffs
Admin + Office staffs
4 (1 admin + 1 accountant + 1 CCE +1 HR Exc.)
Yearly utility bill + expenses
29,600USD
Office & plant space rental
1,300USD
Cash Flow & Net Profit

Yearly Production
10MWp SPV Modules
Cost of raw materials
0.35USD/Wp
Finishing into saleable product cost
0.08USD/Wp
Average sale price
0.64USD/Wp
Yearly expenses in Staffing & HR
120,000USD
Yearly expenses Utility, rental & others
39,000USD
Yearly Production cost
4,300,000USD
Yearly average sales (of 5MWp)
6,700,000USD
26
Investment Payback Analysis For 10MWp production unit

Year:
$67,00,000
$65,66,000
$64,34,680
$63,05,986
$61,79,867
$60,56,269
$59,35,144
Executive Salaries & Bonus
$1,17,000
$1,25,190
$1,33,953
$1,43,330
$1,47,630
$1,49,106
$1,50,597
Direct Labor Costs
$8,00,000
$8,24,000
$8,48,720
$8,74,182
$9,00,407
$9,27,419
$9,55,242
Materials Costs
$35,00,000
$33,60,000
$32,25,600
$30,96,576
$29,72,713
$28,53,804
$27,39,652
Advertising
$5,000
$5,000
$3,000
$3,600
$4,320
$5,184
$6,221
New recruitment process
$3,200
$4,000
$5,200
$6,760
$8,788
$11,424
$14,852
Market research expenses
$25,000
$25,250
$25,503
$25,758
$26,015
$26,275
$26,538
Incremental maintenance
$0
$5,000
$5,000
$5,000
$5,000
$6,000
$6,000
Other Costs
$23,000
$25,300
$19,800
$21,780
$21,780
$23,958
$23,958
Total costs
$44,73,200
$43,73,740
$42,66,776
$41,76,985
$40,86,653
$40,03,172
$39,23,060
EBITDA
$22,26,800
$21,92,260
$21,67,904
$21,29,001
$20,93,214
$20,53,098
$20,12,084
Less: Depreciation
$2,21,200
$2,21,200
$2,21,200
$2,21,200
$2,21,200
$2,21,200
$2,21,200
Income before taxes
$20,05,600
$19,71,060
$19,46,704
$19,07,801
$18,72,014
$18,31,898
$17,90,884
Less: Taxes
$1,40,392
$1,37,974
$1,36,269
$1,33,546
$1,31,041
$1,28,233
$1,25,362
Net income
$18,65,208
$18,33,086
$18,10,435
$17,74,255
$17,40,973
$17,03,665
$16,65,522
Plus: Depreciation
$2,21,200
$2,21,200
$2,21,200
$2,21,200
$2,21,200
$2,21,200
$2,21,200
Minus: Investment
$22,12,000
$0
$0
$0
$0
$0
$0
Net Cash Flow
($1,25,592)
$20,54,286
$20,31,635
$19,95,455
$19,62,173
$19,24,865
$18,86,722
Cumulative Net Cash Flow
($1,25,592)
$19,28,694
$39,60,329
$59,55,784
$79,17,957
$98,42,821
$1,17,29,544
Relevant benefits:
Incremental Value of New Business
Relevant controllable costs:
Undiscounted payback period:
2.75 Years
Discount Rate
10%
Discounted Cash Flow
($1,14,175)
$16,97,757
$15,26,397
$13,62,923
$12,18,355
$10,86,536
$9,68,187
Cumulative Discounted Cash Flow
($12,16,478)
($5,83,763)
($80,103)
$3,48,915
$7,45,959
$11,26,877
$77,45,980
Discounted payback period:
3.04 Years
27
ROI Analysis:
Year
Costs
0
1
2
3
4
5
6
$
$
$
$
$
$
$
Cumulative
Costs
44,73,200
88,46,940
1,31,19,216
1,73,02,251
2,13,94,954
2,54,04,781
2,93,34,495
44,73,200
43,73,740
42,72,276
41,83,035
40,92,703
40,09,827
39,29,715
2,93,34,495
Benefits
$67,00,000
$65,66,000
$64,34,680
$63,05,986
$61,79,867
$60,56,269
$59,35,144
Cumulative
Benefits
67,00,000
1,32,66,000
1,97,00,680
2,60,06,666
3,21,86,533
3,82,42,802
4,41,77,946
4,41,77,946
ROI:
50.6%
70,00,000
60,00,000
50,00,000
40,00,000
30,00,000
20,00,000
10,00,000
0
Year0
Year1
Year2
Total Expenses
Year3
Year4
Year5
Year6
Targeted Sales
28
Break Even Analysis

Breakeven Point (units):
687
Sales volume analysis:

Sales volume per
period (units)
333
667
1,00
0
1,33
4
1,66
7
2,00
0
2,33
4
2,66
7
3,00
1
3,33
4
Sales price per

unit
175
175
175
175
175
175
175
175
175
175
175
Fixed costs per

period
32,6
50
32,6
50
32,6
50
32,6
50
32,6
50
32,6
50
32,6
50
32,6
50
32,6
50
32,6
50
32,6
50
Variable costs
0.00
42,5
08
85,0
17
1,27,
525
1,70,
034
2,12,
542
2,55,
051
2,97,
559
3,40,
068
3,82,
576
4,25,
085
Total costs
32,6
50
75,1
58
1,17,
667
1,60,
175
2,02,
684
2,45,
192
2,87,
701
3,30,
209
3,72,
718
4,15,
226
4,57,
735
0.00
32,6
50
58,3
45
16,8
13
1,16,
690
1,75,
035
2,33,
380
2,91,
725
3,50,
070
4,08,
415
4,66,
760
5,25,
105
5,83,
450
-977
14,8
59
30,6
96
46,5
32
62,3
69
78,2
05
94,0
42
1,09,
878
1,25,
715
Total sales
Net profit (loss)
Unit Contribution Margin
27%
Variable costs per unit

Unit contribution margin
73%
29
Variable Costs Per Unit
$7.50 , 6%
$12.50 , 10%
$0.00, 0%
Commission per unit

Direct material per unit
$20.00,
16%
Shipping per unit
$87.50, 68%
Supplies per unit

Other variable costs per unit
Breakeven Analysis Chart

7,00,000.00
6,00,000.00
5,00,000.00
4,00,000.00
Dollars
Fixed costs per

period
3,00,000.00
Total costs
2,00,000.00
1,00,000.00
0.00
1
10
11
(1,00,000.00)
Sales Volume (Units)
30
Marketing Strategies
And Your Market is Global:
31
About Me:
Hello! Myself Amrit Mandal, Executive Director (Technical) of OhmSolar & Technologies. In my
professional career, till now I have consulted & executed quite a number of MW scale Solar PV
projects in India and abroad.
As a company we provide:
Total Project consultancy for Solar Projects (Single window Solution)
Sourcing Management services to Solar companies - for both the developer & PV
manufacturers
Pre-feasibility studies of PV projects
Market research for PV projects, production units and upcoming & existing PV
companies
Owners engineering services for PV production line & projects
O&M services for Large scale PV Projects
We operate from West Bengal, India & provide services related to solar PV through the world.
For any queries Contact us: info@ohmsolar.co.in
Please feel free to contact me to clear any doubt regarding Solar work at my personal e-mail id:
Personal Profile
Company Page
Amrit Mandal LinkedIn
OS&T LinkedIn
Amrit Mandal - Facebook
OS&T Facebook
Amrit Mandal Google+
OS&T - GoogleDrive
32

How To Setup 5MW 10MW Solar PV Module Manufacturing Unit - Complete Business Model

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

How To Setup 5MW 10MW Solar PV Module Manufacturing Unit - Complete Business Model

Uploaded by

Copyright:

Available Formats

5MWp

Nos of Proposed Plants

Nos of Proposed Capacity

Installed Capacity as on dec, 2013 (GW)

Rest of the Target (GW)

Project by 2020 (GW)

SPV module demand

Indian Market Overview:

Existing Solar PV Module Manufacturing Company

Production Capacity Per

Indian Market Analysis & Scope of New Production Unit

Global Market Analysis & Scope of New Production Unit

Benefits for Indian PV Module Production Company:

Technical Details Overview, Instruments, Raw Materials, Layout

Required Materials & their specification:

Conversion efficiency: >16%

Ethylene Vinyl Acetate (EVA) Film:

The key component, the

Importance of Solar glass:

Dimension (max): 2134mmx2134mm or

Thermo Plastic Elastomer (TPE) Back sheet:

Importance of TPE backsheet:

Protection class: IP67/IP65

Technical Details of the Manufacturing Instruments

Automatic Solar PV Module Laminator

Mode-1 (Single shift; 8hours a

250Wp x 3pieces/time x 3times/hour x 8 hours

Solar Cell Tester :

200x200mm/ 0.1 5Wp

Solar PV Module Tester:

Effective test area/test range

2000 x 1100 mm/ 5W to 300W

Electro-Luminance (EL) Tester:

Module testing capacity

Glass Washing Machine:

Max permissible width of glass

Maximum Module dimension

EVA, TPE back sheet cutting station:

Working table dimension

Solar cell Soldering station:

2 set Single soldering heating plate and

Operating platform dimension

96mm x 135mm x 160mm

Soldering ribbon cutting machine:

Module transfer Carrier:

Ready Material Carrier:

Visual Inspection Station:

Edge Trimming Table:

Cell sorting Station:

Production Unit Layout/Floor Plan

Financial Analysis Investment, Payback, Break Even & more.

Mode1 For 5MWp yearly PV Module Production Capacity

Yearly Production Capacity

5MWp SPV Modules (single shift, 8hrs/day)

Single shifts, 8 hours/day, 300 working days/year

Production Unit staffs

9 (7 technicians + +1 supervisor + 1 Production Engineer)

Marketing & Sales team staffs

14 (12 Mktg Executives + 1 Re. Manager + 1 GM)

After Sales team staffs

Admin + Office staffs

4 (1 admin + 1 accountant + 1 CCE +1 HR Exc.)

Yearly utility bill + expenses