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 two newsletters on key considerations for solar module manufacturing, we discussed in detail 6 major pre-production considerations namely:

• Technology to be used for solar module manufacturing

• Plant capacity

• BOM components

• Equipment & machinery

• Size of module

• Certifications required for module manufacturing  

In this newsletter, we have focused on covering the other pre-production considerations namely:

• Government policies & incentives

• The area & location of the plant

• Plant operations

• Reinsurance

Solar energy has been growing in popularity around the world, and India is no exception. In fact, India was one of the few countries that began manufacturing solar cells and modules in the late 1970s. The Indian government has since set ambitious targets for renewable energy production, including solar, and is actively promoting solar manufacturing in the country. The Ministry of New & Renewable Energy (MNRE), Government of India, has been consistently bringing out policies for developing and facilitating domestic solar manufacturing capabilities in the country. The government has set an ambitious target of 500 gigawatts of renewable capacity by 2030. Favorable government incentive schemes such as BCD, PLI, SPECS, M-SIPS, CSPU, and MOOWR aim to achieve higher domestic manufacturing capacity in India.

The selection of a region or area in which the plant is to be installed requires several considerations. An ideal location is one where the cost of the module is kept to a minimum, with a large market reach, the least risk, and maximum gain. Every renewable energy company is faced with the problem of deciding the best site for setting up solar module manufacturing units. The proximity of ports/roadways for logistics, availability of green/brownfield land, installation of machinery & other utilities, competitive land lease for factory, state government subsidies on land cost, and government permits & approval to manufacture solar modules are the key considerations while deciding the location of solar module manufacturing plant. As of now, West Bengal and Gujarat are the preferred locations for setting up solar module manufacturing units in India.

Plant operations management is a plan of the optimum arrangement of facilities including personnel, operating equipment, storage space, material handling equipment, and all other supporting services along with the design of the best structure to contain all these facilities. A few of the major considerations while managing solar module manufacturing plant operations include deciding on a number of production shifts, managing the module production cycle, availability of seamless power connection, planned maintenance, safety, and availability of engineers/technicians & skilled labor. For a ~500 MW module manufacturing capacity, a manufacturer requires 100-150 unskilled workers and 50-100 skilled workers with 3 shifts per day. The plant also requires 30-40K units of electricity to fulfill the production requirements.

Solar panel warranty insurance protects against solar module performance degradation and manufacturing defects that are covered by the manufacturer's warranty. Solar power projects' viability is largely determined by the performance of solar modules. A comprehensive solar panel insurance product would help in the coverage of various risks associated with the development, construction, operation, ownership, and investment in solar power projects. The New Solar Panel Code and Practice (SPCoP) helps all stakeholders such as producers, buyers, investors, etc. to better assess the long-term quality and reliability of solar panels in the context of insurance.

Stay tuned for our upcoming series of newsletters on key considerations for solar module manufacturing covering the post-production considerations in detail.