Introduction:

As global electricity consumption rises, the importance of sustainable sources has also grown. In India, both State and Central Governments have introduced various schemes, incentives, and techniques to promote the adoption of solar energy. Solar energy, one of the most widely used renewable sources, has made India the third-largest solar market globally. If you're considering starting a Solar Manufacturing Company in India, this blog will serve as a comprehensive guide. Scroll down to discover essential points to consider when launching a Solar Manufacturing Company in India.

What Is Solar Business?

In this industry, companies produce various solar energy-related products like solar inverters and solar batteries. These products not only help conserve the environment but also reduce energy consumption, offering economic benefits for individuals and families. The main goal of using these products is to decrease the reliance on conventional energy sources.

There are different types of Solar Businesses, including:

  • Solar INC: Focuses on groundwork or installation work, often operating as contractors and partnering with Solar EPC companies.
  • Solar EPC: Stands for Engineering, Procurement & Construction. These businesses procure essential solar materials from manufacturers, handle the engineering work, and provide installation and post-installation services.
  • Solar Consulting Business: Offers expert advice for large solar projects. Solar Energy Consultants manage entire projects for business owners.
  • Solar Manufacturers: Produce solar products that are purchased and used by Solar EPC businesses, including materials needed for solar projects.

India currently has the capacity to produce 40,000 MW of solar energy annually, and this figure is expected to exceed 100,000 MW by 2025. The concept of sustainable development is motivating individuals to seek alternative sources of clean energy. The Indian government is also focusing on promoting these energy sources and has launched multiple schemes to support them.

The Indian market has rapidly expanded, with a CAGR of 17.33% between FY16-20. The country aims to install solar plants with a capacity of 280 GW by 2030. Recently, the Government of India increased import taxes on solar panels by 30% to encourage local manufacturers to dominate the market. Several initiatives have been taken by the Ministry of New and Renewable Energy (MNRE) to draft new plans and issue tenders, which is expected to drive the growth of Indian manufacturers during the forecast period.

What is a PV Module?

A solar cell panel, solar electric panel, photovoltaic (PV) module, or simply solar panel, is an assembly of photovoltaic cells mounted within a framework for installation. These panels harness sunlight to generate direct current electricity. A group of PV modules forms a PV panel, and a system of PV panels is known as an array. Photovoltaic system arrays provide solar electricity to electrical equipment.

Raw Materials of PV modules:

The primary raw material of a solar panel is pure silicon. The outer frame, which houses an array of solar cells, is made of highly transparent glass to allow sunlight to penetrate. For safety and maintenance, the glass used must not be brittle.

Solar panels use two types of silicon: crystalline and amorphous. Crystalline silicon, cut into disks about 1 cm thick and polished, serves as the light-absorbing material. These panels also use cooling materials to prevent damage from overheating. Amorphous silicon, on the other hand, can be continuously rolled into very thin silicon chips that can absorb different parts of the solar spectrum. It is also more resistant to damage during installation and transportation compared to crystalline silicon.

Steps in Making a Solar Panel:

  • To begin, very pure semiconductor-grade polysilicon is obtained from quartz using an electric arc furnace. The application of a carbon arc produces molten polysilicon and carbon dioxide.
  • The obtained polysilicon is heated to its melting temperature, and traces of boron are added to form a P-type semiconductor material. An ingot or silicon block is created either by using a seed crystal extracted from the molten polysilicon or by casting the molten polysilicon into a block.
  • These ingots are sliced using wire saws to produce separate wafers, which then undergo a surface etching process. Solar cells typically use hexagonal or rectangular wafers as they fit together perfectly.
  • After cleaning, the wafers are placed into a phosphorus diffusion furnace to form a thin N-type semiconductor layer on the outer surface of the cell. The top of the cell receives an anti-reflective coating to reduce sunlight loss and is equipped with thin electrical contacts to connect one solar cell to another and to a receiver.
  • The back surface of each cell is coated with an aluminized conductive material, displacing the diffused phosphorus layer to restore the P-type properties of the surface.
  • Each completed cell is then tested, sorted based on current output, and connected with other cells to form a solar panel.

Regulatory compliance for PV module:

  • In India, PV modules are regulated by the Bureau of Indian Standards and the Ministry of New and Renewable Energy under a compulsory registration scheme introduced in 2013.
  • Under this scheme, PV modules must be tested by an NABL-accredited lab according to designated standards. The product must pass all testing parameters before the manufacturer can sell it in the Indian market.
  • This registration scheme is mandatory for both foreign and Indian manufacturers, who must comply with all terms and conditions of the license to continue business in India.
  • The scheme was designed to ensure consumer safety and to guarantee that quality products reach the end user.

Steps to Start a Solar Panel Manufacturing Business:

  1. Detailed Project Report (DPR):
  • A DPR offers clarity on the estimated costs, profit projections, technology descriptions, suitable marketing strategies, and necessary components for a successful solar panel manufacturing plant.
  1. Finance Arrangement:
  • Entrepreneurs can utilize government subsidies and bank loans for financial assistance. The DPR is essential for securing bank loans and qualifying for subsidies.
  1. Register and Obtain Necessary Licenses and Permits:
  • PV modules must undergo testing from a NABL-accredited lab and comply with all terms and conditions under the compulsory registration scheme regulated by the Bureau of Indian Standards and the Ministry of New and Renewable Energy.
  1. Infrastructure:
  • Entrepreneurs can lease, buy, or build suitable infrastructure. It's advisable to choose a location convenient for sales and marketing. Once the infrastructure is ready, the next step is to procure and install the machinery.
  1. Machinery and Raw Material Procurement:
  • A wide range of machinery is required, depending on the type and scale of production. Industries can choose manual, semi-automated, or fully automated production processes. Consulting a machinery expert before selecting machinery is crucial.
  1. Hire Trained Workforce:
  • A skilled workforce is essential for increasing production and efficiency. Regular training sessions are necessary to improve skills and reduce manufacturing errors.
  1. Marketing and Branding:
  • Effective marketing strategies are critical for the success of the business. The global market for solar panels is rapidly growing, presenting significant opportunities. Manufacturers should develop efficient strategies to capture a large market share, with MNCs and manufacturing units installing solar panels on their rooftops providing significant market opportunities.

Conclusion:

Given India's growing focus on sustainable energy and its ambitious solar targets, it is a promising venture to start a solar manufacturing company in India. By carefully planning and implementing the steps outlined, you can position your business for success in this expanding market. The increasing demand for solar energy solutions, combined with supportive government policies and incentives, create a favourable environment for new entrants. With unwavering commitment, strategic planning, and a steadfast commitment to quality, your solar manufacturing company can contribute to India's green energy objectives while achieving significant growth and profitability.