market research agencies in mumbai
26 Apr 2023

Key considerations for solar module manufacturing - Part 2

key-considerations-for-solar-module-manufacturing-part-2

There are distinct segments within the whole ecosystem of solar power, starting from equipment manufacturing and module production all the way to installation and operation. The key considerations for solar module manufacturing are divided into two segments: pre-production and post-production. Pre-production considerations involve factors such as module size & technology, plant capacity, BOM components sourcing, certifications, area location, and government policies & incentives. The post-production phase focuses on devising the sales strategy and creating infrastructure for the storage & transportation of solar modules.

In our last newsletter on key considerations for solar module manufacturing, we discussed in detail 3 major pre-production considerations namely: technology to be used for solar module manufacturing, plant capacity, and BOM components.
In this newsletter, we have focused on covering three other pre-production considerations namely:
  • Equipment & machinery
  • Size of module
  • Certifications for module manufacturing

Having the right equipment and machinery can make the difference between profit and loss for any company. A few major considerations while sourcing machinery to manufacture solar modules include planned plant capacity, sourcing strategy, type of technology to be used in the machinery, financing option, training & development programs for technicians/machine operators, and current as well as future module technology pipeline. 
An important element of manufacturing strategy for a firm is determining the size of solar modules to be manufactured. Available sizes for solar modules ranges between 20 Wp to 600 Wp in India. The size of solar modules affects the performance of any solar panel in terms of its efficiency and ability to perform even in partial shadow environments. Several supply (production) side considerations such as plant & machinery capacity, availability of BOM, storage & handling, production management and durability of modules play a crucial role in deciding the size of the module to be manufactured. Along with the supply side considerations, there are several demand (sales) considerations like sales strategy, ensuring global standards, target customer segment, cost per unit of energy produced, and transportation which also play a crucial role in finalizing the size of the module.

The Ministry of New & Renewable Energy (MNRE) announced a compulsory registration scheme for solar module manufacturers under the approved list of modules & manufacturers (ALMM), to reduce India’s dependence on solar-related product imports & marking India as self-reliant. MNRE also directed financial institutes to favor BIS-certified solar power devices over other devices in the market. BIS, IEC, ISO, and ALMM are the mandatory certifications required in India for solar module manufacturing. These certifications are an addition to ensure quality checks by the Indian Government.
As per the order, if the solar module doesn’t conform to the Indian Standard, it will not be allowed to store, manufacture, sell, distribute, or import products (BOM components). Hence, a manufacturer must obtain all the relevant certifications to import, manufacture, and sell solar modules in the Indian market. Consequently, the manufacturer also needs to complete the registration, documentation, examination & testing of the product by the BIS-certified laboratory.
Stay tuned for our upcoming series of newsletters on key considerations for solar module manufacturing covering the other pre-production and post-production considerations in detail.


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