Professional Documents
Culture Documents
on
“Niyati Energies - Solar Panel Manufacturers ”
Submitted
In the partial fulfillment of the Degree of
National Management Programme (NMP)
Executive Summary
Niyati Energies is a delhi-based start-up in the solar panel manufacturing space.
We deal in Polycrystalline solar panels in various watt ratings from 10W to
300W in 12V and 24V variants. Our target market would be the urban middle
class population with decision makers’ age from 31 to 40.
There is an urgent increase in Renewable Energy requirement in Delhi to reduce
air pollution and enhance energy security. The Government of the National
Capital Territory of Delhi (GNCTD) intends to rapidly develop decentralised
renewable energy sources, especially solar and reduce its current dependence on
unsustainable and centralised fossil fuel energy. Hence, we are focused on
providing our consumers sustainable solutions towards their Renewable energy
needs.
In the Renewable energy space, our focus is on Solar PV systems for household
needs; specifically on the manufacturing, promotion and sale of Solar PV
panels.
Majority of the consumers avoid buying Solar PV systems because of high
initial cost and unfamiliarity with maintenance of the system. We will combat
these challenges by matching lowest prices and offering great after-sales
support to the client. We manufacture Grade A+ solar panels which are
available at Multi-Brand outlets, distributors, dealers and E-commerce
platforms. Placing newspaper advertisements, setting-up stalls in residential
societies and attending trade conferences and expos are some promotional
activities we will engage in.
Product Category
Equipment which generate energy from renewable sources for power needs of
households
Consumer Survey
Please access the consumer survey : Link to Consumer Questionaire
We have conducted survey with 50 households.
Below are the findings :
1. Most of the respondents are from age group from 21-40 with male,
female ratio as 3:1 along with minimum education level as Graduation.
2. All the respondents are aware about the climate change and its impact
3. All the respondents know about the difference between renewable and
non-renewable energy.
4. Though 100% respondents know solar as the most common renewable
source of energy, along with other sources like Wind, Biomass etc, with
90% also aware of saving in electricity bill if they use solar energy as
compared to thermal power.
5. 64% want to use solar energy in future in their home.
6. Factors with which customers are satisfied and want to have solar energy
in their home are :
a. Shape , Design and Colour of the current available products
b. Performance and Quality offered by the other competitors like
Luminous, Tata, Waaree, Vikram etc. also seem to be satisfactory
to consumers
7. The main factors with which customer are dissatisfied and discouraged to
use solar energy in their home are as below:
a. High Investment cost – 68% respondents have annual income more
than Rs. 700K but still around 62% are not satisfied with the cost
required to be invested at the early stage.
b. After Sales Service - 64% are not satisfied with the after sales
service provided after installation.
Satisfication level for After Sales
Service
70
60
50
40
30 Percentage
20
10
0
Highly Somewhat Moderate Somewhat Highly
Dissatisfied Dissatisfied Satisfied Satisfied
Limitations of Survey
Identification of Product
From consumer responses, we surmise that out of all the renewable energy
sources, consumers are most aware about solar energy technologies/uses. So we
have narrowed-down our product category to Solar Energy appliances/systems.
But there are many reasons why a Solar PV system makes more sense for Delhi
than other solar appliances like Solar cooker, calculator, watch or chimney.
These reasons are:
1. Given Delhi’s land-locked position, the high cost and paucity of barren
land within its borders, and low potential for wind or hydro power, Delhi
must focus on rooftop solar as its primary source of renewable energy
2. Delhi is blessed with almost 300 sunny days and the rooftop space
available for solar panels is estimated to be 31 sq. km, giving Delhi a
solar energy potential of 2500 MWp (annual Generation approx. 3,500
million kWh). Of this potential, 49% is in the domestic sector.
3. Power demand increases in summers owing to the increasing use of air
conditioning. In general, energy utilities (DISCOMS) pay more to meet
short-term demand surges, raising the average cost of power. Delhi’s
daily day time peak demand curve broadly matches the generation curve
of solar system, which can therefore help to reduce peak demands.
4. Energy produced by rooftop solar systems is mostly consumed at, or near,
the point of generation, minimizing transmission and distribution losses.
5. Market conditions are favourable for solar power. While solar energy
tariffs have, on average, fallen 6-8% per year since 1998 (solar panel
prices have dropped 75% in the last six years), conventional energy tariffs
in Delhi have risen at 6.9% per year on average since 2007.
6. Solar energy tariffs in Delhi have become cheaper than conventional
energy tariffs for top end of domestic segment, and are expected to
achieve parity in the low-medium domestic segment.
7. The Government of India has set a target of, 100 GW of solar energy
generation in India by the year 2022, of which 40 GW is from rooftops.
Delhi has consequently established solar generation targets of 1GW by
2020 (4.2% of energy consumed)
8. As part of Delhi Solar Policy, 2016, GNCTD will raise consumer
awareness of solar energy, promote capacity building, and generate
healthy competition among solar developers. It will encourage the
installation of solar plants with Net Metering on all residential buildings,
colonies, townships, housing societies, private bungalows, farm houses
etc.
Hence, on the basis of these facts, we further narrow down the product category
to Solar PV systems.
Solar PV systems can be Grid-connected or Off-Grid. Grid over here means the
wiring network from the electricity distribution company that provides you
electricity.
An off-grid solution does not supply to the Grid and stores excess electricity in
a system of batteries. Below diagram shows this. A Grid-Connected system is
similar to the off-grid solution without a charge controller and a battery bank
and it can send excess electricity produced back to the grid.
We have chosen only Solar Panels as our product and haven't extended into
other parts of the Solar PV system. Reasons being:
1. It is essential to focus on building brand and quality through single
product before expanding the scope.
2. Consumer preference from Survey shows that maximum user dilemma is
caused during selection of solar panels because it is a high cost item.
Hence, it will be easier to enter this space with good value proposition.
3. Maximum profit margins can be earned here as it is a high-cost item.
Competitive Landscape
The competitive landscape in solar power industry is brisk. Below are some
pointers:
1. Trina Solar (China), Canadian Solar (Canada) & Jinko Solar (China)
are some top international brands that we know are available in India.
2. Waaree and Vikram are our biggest Indian competitors that have
better experience and make quality panels. Vikram and Waaree top the
list of experience with 500MW of installed capacity in India.
3. TATA, Su-Kam & Luminous are well-established Indian
conglomerates enjoying enough reserves and surplus in their balance
sheet compared to other Indian brands.
The 4 Ps
Product
Our product should score high in quality in order to keep driving word-of-
mouth publicity and customer satisfaction. Below are some of the parameters
(in order of priority) based on which the value proposition of the product will be
built. We will focus on all these parameters to satisfy the client with a great
product :
1. Solar panels are rated with Grades - This is a method for classifying
solar panels. Solar panel grading is defined more clearly and is based on
the types and degrees of some of the below defects :
a. Scratches on the frame and/or glass
b. Excessive or uneven glue marks on glass or frame
c. Gap between frame and glass due to poor sealing
Essentially, grade A panels are the best of the lot
2. Tier level of manufacturer - Generally accepted characteristics of tier 1
manufacturer are the following :
a. Uses the best grade of silicon to produce solar cells (higher
the silicon grade, the longer the solar cell will last and the
better it will perform)
b. Produces some of the best performing solar panels at
reasonable price. Is vertically integrated, meaning they make
their own cells and wafers
c. Controls each stage of the manufacturing process with
advanced robotic processes, Invests heavily in R&D
d. Produces 1 GW of solar panels in a year
Below table gives Roof Area needed in Sq. Ft. for various efficinecies
and Wattages. For example, to generate 2000 watts from a 12% efficient
system, you need a 200 sq ft of roof area.
Pricing
Currently, there are 6 major players in Solar Panel product line. Three of which
are well established conglomerates enjoying brand mantra i.e. Luminous, Tata
Solar & Sukam; and other three are Vikram Solar, Indosolar and Waaree, all of
these are single product firms of solar panel production.
It is observed that average price of Sukam is highest amongst the players. Tata
Solar and Luminous are priced on similar lines, whereas Vikram, Indosolar and
Waaree are cheapest with same pricing strategy. Hence intense price
competition can be bifurcated in 2 groups –
1. Competition amongst well established conglomerate brands – Consumers
of which are upper class or upper middle class of the economy. These
consumers prefer high brand personality products and are less sensitive to
price.
2. Competition amongst single business line brands – Consumers of which
are majorly lower to middle class of the economy. Concentration of these
users is high in semi urban and rural areas.
Our product will be predominantly for semi urban to urban population, offering
prices competitive to those of Vikram, Indosolar and Waaree. Hence, while our
product will be positioned to urban based middle to higher income group, our
prices will be competitive with those of Vikram, Indosolar and Waaree.
4000
3000
2000
1000
0
Luminous Tata Solar Sukam Vikram Indosolar Waaree
Price comparision of Indigenous Poly 100W
Solar Panels
7000
6000
5000
4000
3000
2000
1000
0
Luminous Tata Solar Sukam Vikram Indosolar Waaree
14000
12000
10000
8000
6000
4000
2000
0
Luminous Tata Solar Sukam Vikram Indosolar Waaree
Promotions
For promotions, we will focus on below strategies:
1. Advertise at correct timings
We will educate the customer about the cost savings inherent in solar
energy. Advertising frequency will be mapped and increased around the
time when customers will be expecting electricity bills. This can be done
with geographically targeted web-based advertising, local TV, newspaper
and radio commercials.
For example, in some areas around the 8th of every month the electricity
bill floats out, it’s the best time when customer can be contacted to make
them understand the benefits of solar power.
2. Enlighten the customer about the higher prices they are paying
because of limited supply
This can be done by educating the customer target about the long-term
costs of unstable fuel supplies. Coal, oil, natural gas, and other fossil fuels
come with a diminishing supply and an increasing demand.
7. Bloggers
Think energy auditors and organic food co-operatives. These businesses
will have access to a great, fairly well-off demographic that is
sustainability minded, and they will have built up a layer of trust that is
critical to closing a sale. Getting a referral from these companies would
go a long way to finalizing a deal.
To catch the eye of the consumer and making it easy for them to buy, the main
aim will be to create exhaustive distribution channels. These channels have to
be acquired from scratch, hence, meetings and interactions with intermediaries
is required to educate them on not only the product but also the benefits it offers
to consumers. It is of paramount importance for these intermediaries to be
convinced with product offerings to strengthen the product penetration in the
segment. Following channels have been identified to meet the purpose:
1. Well established distributers – To begin with, established distributers pre-
existing in solar panel segment will be extremely useful to ensure flow of
product. Their existing knowledge in the market can be highly beneficial
to overcome initial hiccups to introduce the product.
2. Aspiring Distributors – Given the existing competition, our distribution
strategy cannot solely rely on established distributors as they might have
their own brand preferences in order to maximise their sales. Exclusive
tie ups with aspiring distributors can help create zeal in the market
segment. Exclusive offers can be customised for such distributors to
extract extra efforts from them.
3. Dealers – The distributor is usually a wholesaler who sells to dealers and
dealers are usually retailers who sell directly to the public. Direct contact
with dealers is extremely important to establish as they usually face off
the consumers and influence their preferences to a large extent.
4. MBOs (Multi-Brand Outlets) – Our target urban populations love visiting
to MBO’s to save time and get quick real time comparison of wide range
of products that outlets exhibit. None of the solar panel brands have
presence in this channel which can be extremely beneficial for us to enter.
Our panels can be placed in these stores to ensure customers have the
look and feel of the product.
5. E-Commerce – Inhouse SEO will be required followed by introducing the
product on E Commerce platforms like Solarhippo.com. This will further
benefit sales through option of low cost EMI.
Marketing Strategy
Our strategy is basis findings of the Consumer Survey and a developing country
as our market.
Differentiation Strategy: It is seen from Consumer Survey that consumers feel
dearth of good after-sales service. 64% consumers are not satisfied with the
after sales service provided after installation.
Employee Training: After sales service does not focus solely on a product’s
technical ability to function, but also on customer satisfaction. Many employees
in solar businesses are primarily technicians. Customer-oriented thinking is
foreign to them. Along with giving them theoretical knowledge of after sales
management, practical experience in everyday life provides the best opportunity
to learn customer-oriented thinking.
Bibliography
http://ipgcl-ppcl.gov.in/documents/renewable/2016_08_03_6_Delhi_Solar_Policy.pdf
https://www.bijlibachao.com/solar
http://www.solarmango.com/ask/2016/02/11/choose-best-solar-panel/
Flash Test background : http://sinovoltaics.com/learning-center/testing/flash-test-technical-
background-and-importance/