Disclaimer of Warranties and Limitation of Liability This report is provided by ISA on an "as is" and "as available" basis. ISA and PricewaterhouseCoopers have provided information that is provided by market participants, survey respondents and secondary research of publicly available information. ISA and PricewaterhouseCoopers take no responsibility for any incorrect information supplied to us by market participants (manufacturers or users). Quantitative market information is based primarily on interviews and therefore is subject to fluctuation. No claims are made for the accuracy or applicability of the information to any specific sit uation. ISA and PricewaterhouseCoopers make no representations or warranties of any kind, express or implied, as to the information, content, materials, etc., included in this report. The user of the report shall do so at the user’s sole risk. In the event the user intends taking any steps that could have an adverse effect on the user’s business, ISA expressly states that the user should consult its legal, tax or other advisors, in order to protect the interests of the user, which may be specific from case to case. It is emphasized that ISA has participated in preparation of this report with PricewaterhouseCoopers in an independent manner and should not be construed as necessarily being reflective of the views or position of any individual member company of ISA or of the representatives of such member companies that may serve on the ISA's executive council or other member forums. To the full extent permissible by applicable law, ISA and PricewaterhouseCoopers disclaim all warranties, express or implied, including, but not limited to, implied warranties of merchantability and fitness for a particular purpose. ISA will not be liable for any damages of any kind arising from the use of this report, includin includin , but but not limited limited to to direct, indirect, indirect, incidental incidental,, unitive, unitive, and conse uential uential dama es.
Study on Solar Photovoltaic Industry: ISA-NMCC 2008
Disclaimer of Warranties and Limitation of Liability This report is provided by ISA on an "as is" and "as available" basis. ISA and PricewaterhouseCoopers have provided information that is provided by market participants, survey respondents and secondary research of publicly available information. ISA and PricewaterhouseCoopers take no responsibility for any incorrect information supplied to us by market participants (manufacturers or users). Quantitative market information is based primarily on interviews and therefore is subject to fluctuation. No claims are made for the accuracy or applicability of the information to any specific sit uation. ISA and PricewaterhouseCoopers make no representations or warranties of any kind, express or implied, as to the information, content, materials, etc., included in this report. The user of the report shall do so at the user’s sole risk. In the event the user intends taking any steps that could have an adverse effect on the user’s business, ISA expressly states that the user should consult its legal, tax or other advisors, in order to protect the interests of the user, which may be specific from case to case. It is emphasized that ISA has participated in preparation of this report with PricewaterhouseCoopers in an independent manner and should not be construed as necessarily being reflective of the views or position of any individual member company of ISA or of the representatives of such member companies that may serve on the ISA's executive council or other member forums. To the full extent permissible by applicable law, ISA and PricewaterhouseCoopers disclaim all warranties, express or implied, including, but not limited to, implied warranties of merchantability and fitness for a particular purpose. ISA will not be liable for any damages of any kind arising from the use of this report, includin includin , but but not limited limited to to direct, indirect, indirect, incidental incidental,, unitive, unitive, and conse uential uential dama es.
Study on Solar Photovoltaic Industry: ISA-NMCC 2008
PREFACE Solar photovoltaic (PV) based electricity generation costs are declining and expected to become economically attractive as technologies improve and the cost of electricity generated by fossil fuels rises. In the years to come, increasing investment capital will probably boost global solar PV capacity 20 to 40 times higher than its current level. The incentives offered by the Government of India India for Solar PV manufacturing as part of the Semiconductor Policy 2007 and deployment towards grid-connected power under the Generation-Based Incentives (GBI) have acted as catalysts for growing interest among investors in this space. Domestic solar PV manufacturing will complement and support the deployment of solar energy. This will make India competitive and a preferred global destination for this industry. Further, generation of power through solar will give India the energy security requirements and another source for energy. This will boost economic growth and industrialization. This report is the first comprehensive one on the Indian solar PV industry. The analysis is based on a comprehensive review of secondary literature and extensive fieldwork. This has allowed us to make specific recommendations which, if implemented, could contribute to India’s emergence as one of the major solar hubs in the world. Given our domestic demand and the entrepreneurial talent, this would be a natural outcome. The report has been supported by the National Manufacturing Competitiveness Council (NMCC). We are grateful to NMCC for their generous support, involvement and for the inputs of their members in the t he study. The concerted efforts of the ISA solar PV subcommittee on industry research and PricewaterhouseCoopers teams are greatly appreciated. We would also like to acknowledge the support of several individuals and organizations from within and outside the industry for this study. We take this opportunity to thank each one of them for sharing their valuable insights. Poornima Shenoy President, ISA
Study on Solar Photovoltaic Industry: ISA-NMCC 2008
Jaswinder Ahuja Chairman, ISA
Table of Contents Page No Abbreviations 1 Executive summary 4 A1: Mapping the solar PV manufacturing and production supply chain - Global and India review 11 Background 11 Global scenario 12 Indian scenario 27 A2: Technology status and future trends 39 Introduction 39 Background 39 Development of solar cell technologies 40 Solar cell manufacturing 44 Solar PV technologies – Present trends, challenges, future roadmap 57 A3: Identification of market segments for solar PV in India 73 Prevailing energy and power scenario 73 Solar PV market in india 73 Market segment analysis 78 A4: Assessment of policy support mechanism and benchmarking of global solar PV industry 96 Germany 96 Japan 109 United States of America 118 Benchmarking of global solar PV industry 134 A5: Policy framework of solar PV in India 141 Introduction 141 National level manufacturing linked incentives 141 Special incentive package scheme (SIPS) 141 SEZ policy 142 Generation based incentives (GBI) 142 Solar PV incentives in different states 143 A6: Economics of solar PV manufacturing in India and need for government support 146 Investment requirements in solar PV manufacturing 147 Cost structures 148 Profitability of solar PV sector 150 Impact of vertical integration on selling price 153 China –India comparison in solar PV manufacturing 153 Power generation from grid connected solar PV system 155
Study on Solar Photovoltaic Industry: ISA-NMCC 2008
