Transcript
Manufacturing of Solar Photovoltaic Cells and Modules
Electronics and Hardware Government of Gujarat
Contents Project Concept
3
Market Potential
5
Growth Drivers
7
Gujarat – Competitive Advantage
9
Project Information
10
- Project Location - Infrastructure Availability/ Connectivity - Raw Material/ Manpower - Key Players/ Machinery Suppliers - Key Considerations
Project Financials
16
Approvals & Incentives
17
Key Department Contacts
18
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Project Concept The concept The project envisages, setting up of Manufacturing of Solar Photovoltaic Cells and Modules Unit in Gujarat looking at the potential based on the demand and supply gap at national and state level.
Solar cells and modules
Solar cell or photovoltaic (PV) cell is a semiconductor material, which combines some properties of both metals and insulators making it uniquely capable of converting light into electricity. When light is absorbed by a semiconductor, photons of light can transfer their energy to electrons, allowing the electrons to flow through the material as electrical current. A single PV device, typically available in 12.5 cm and 15 cm square sizes, produces about 1-2 watts of power. To boost the power output of PV cells, they are connected together in chains to form larger units known as modules or panels. Modules can be used individually, or several can be connected to form arrays. PV modules are typically rated between 50W and 350W. One or more arrays are connected to the electrical grid as part of a complete PV system.
Types of solar cells
Monocrystalline
Polycrystalline
Monocrystalline panels Monocrystalline panels have been commercially developed since the 1960's. Monocrystalline panels have the best space efficiency and thus occupy lesser space. The cells in monocrystalline modules are cut from a single silicon crystal into wafers roughly 0.2mm thick making them highly efficient.
Polycrystalline panels Polycrystalline or multicrystalline panels have been in mass production since the late 1970's and have become more popular over time. Polycrystalline modules are made from cells composed of multiple small silicon crystals which makes them cheaper to produce though they are slightly less efficient than monocrystalline modules. Page 3
Thin-Film
Project Concept Thin-film panels Thin-film solar panels are the modern solar cells in production since 1980s. The layers making up thin-film modules are about 40 times thinner than a strand of human hair, at just 2 microns. The layers can be deposited on glass forming a panel similar to crystalline modules, but many other materials can also be used and flexible panels can be made. Although these panels perform better in low light, they take more space than other panels.
Comparison of solar cells Property
Monocrystalline cells Polycrystalline cells Thin film cells
Efficiency
High
Moderate
Low
Cost
High
Moderate
Low
Lowest
Moderate
High
Low
Low
High
Moderate
Moderate
High
Area occupied per KW High temperature performance Generation in diffused light
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Market Potential Global Solar PV Market Solar PV Global Capacity, 2005–2015 (in GW) 227
177 138 100
China, Germany, Japan, US, Italy, UK, France, Spain, India and Australia
70 5
7
16
9
23
Top 10 countries in terms of solar PV capacity*
40
*As on 31 March 2016
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Source: World Bank
From 1,000 MW in 1999, the global solar capacity has grown at a CAGR of 40% to reach 227 GW in 2015 and is expected to reach 310 GW by 2016.
With strong growth in solar capacities, the PV module capacity also multiplied resulting in a supply glut. The modules excess capacity ratio stood close to 50% and 60% in 2013 and 2014 respectively. Global Solar Module Price 2010–2015 (in $/W) 2.00
65% 1.20
2010
2011
0.70
0.80
0.70
0.65
2012
2013
2014
2015
Decline in global price of solar module from 2010 to 2015 Source: World Bank
The decline in the solar module prices have been intensified with the advent of mass production of solar PV modules in China. Solar Multi Module Cost for Chinese Producer 2013–2020 (in $/W) 0.69
2013 Page 5
0.64
2014
0.57
2015
0.55
0.52
0.48
22% 0.46
0.44
2016E 2017E 2018E 2019E 2020E
Expected decline in cost of multi module for Chinese producer from 2015 to 2020 Source: World Bank
Market Potential Solar PV: India scenario
Solar installations in India has grown 7 fold from 941 MW to 6,763 MW in the last 4 years.
Solar installations in Gujarat witnessed growth of 16.5% to reach 1,119 MWp in 2015-16.
Solar installations in India (in MW) 6,763 3,752 2,647 3
9
941
1,684
36
Top 10 states in terms of rooftop solar installed capacity** Tamil Nadu, Gujarat, Maharashtra, Punjab, Karnataka, Rajasthan, Uttar Pradesh, Telangana, Andhra Pradesh & Haryana **As on 31 March 2016
Source: MNRE, Renewable Energy Policy Network 2016
The World Bank Board recently approved a US$625m loan with a 19.5 years grace period and maturity of 20 years to support the Government’s program to generate electricity from installation of rooftop solar PV. The project will finance the installation of at least 400 MW of grid connected rooftop solar PV across India.
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Growth Drivers
Huge solar potential
Jawaharlal Nehru Nehru Jawaharlal National Solar Solar National Mission Mission
Import and export benefits for solar PV manufacturers
Local sourcing requirements
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India receives high solar radiations in several states and the country’s solar potential is estimated at 750 GW (assuming use of 3% of wasteland area). Gujarat’s solar potential is estimated at 36 GW. Total 2 GW, with utility scale solar projects, commissioned in 2015, India plans to install 4.8 GW of utility scale solar capacity in 2016.
Announced in 2009, the Jawaharlal Nehru National Solar Mission aimed to achieve 22 GW of off-grid and on-grid solar capacity by 2022. The JNNSM target has been revised to 100 GW by 2022 (60 GW of utility scale solar; 40 GW of rooftop solar).
Basic customs duty on machinery and equipment required for setting up of solar energy production projects reduced to 5%. Full customs duty exemption on specified raw materials used in the manufacturing of solar back sheet – i.e., Ethyl Vinyl Acetate (EVA) sheet and flat copper wire. Special incentives for exports from India in renewable energy technology under renewable sector-specific SEZ.
Under the National Solar Mission (NSM), certain specific capacity of projects allocated are required to employ solar cells and modules that are manufactured locally in India. In NSM’s Phase 1, projects using crystalline technology had to source modules (Mono and Polycrystalline) from domestic manufacturers, while the thin-film technology could be imported or sourced locally. Unless a solar power producer satisfies the domestic content requirement, the government will not guarantee the purchase of the energy produced.
Growth Drivers
Promoting renewable energy
Solar Energy Purchase obligation in Gujarat
Payment Security Fund
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Government of India is promoting the adoption of renewable energy resources by offering several incentives, such as Government Based Incentives (GBI), capital and interest subsidies, viability gap funding, concessional finance, fiscal incentives etc. GoI also offers a 10-year tax holiday for solar power projects, loans at concessional rates for off-grid applications, subsidy of 30% of the project cost for off-grid PV & solar thermal projects.
The purchase obligation for solar energy in Gujarat will increase from 0.25% of total energy in 2010-11 to 1.75% of total energy in 2016-17. This is expected to increase the demand for solar PV modules in Gujarat with the producers investing in solar capacities.
Solar Energy Corporation of India, has set up a corpus of 1500 crore. The corpus shall be used by the agency to cover against possible defaults in payment by power utilities and other buyers of solar power
Gujarat - Competitive Advantage Key advantages Ease of Doing Business: Gujarat is the only state to have 100% compliance with environmental procedures. The state also fares highly in terms of allotment of land and obtaining a construction permit, obtaining infrastructure related utilities and compliance with labour regulations.
Key industries: Gujarat is the leader in key industrial sectors.
Gujarat has attracted cumulative FDI equity worth US$13.3b from April 2000 to March 2016.
Gujarat contributed around 19.1% to India’s total exports of goods in 2014-15
Easy availability of raw materials: Many key industrial clusters such as foundry & forgings, steel pipes and tubes, steel re-rolled products and fabricated metal products are located in close vicinity of industrial hubs such as Sanand industrial estate.
Gujarat is a power surplus states in the country, as a result it helps in bringing huge amount of investment from the industries and is known as preferred investment destination in the country
Gujarat contributes 7.2% of the Nation’s GDP and shows leadership in many areas of manufacturing and infrastructure sectors. Gujarat’s SDP (State Domestic Product) at current price registered a growth of 11% during the year 2014-15.
In 2013, Gujarat had about 120 engineering colleges with an intake of 61,000 students per year. 3,100 seats were added in 2013 along with four new engineering colleges. This ensures adequate pool of skilled workers in the state.
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Favourable labour policy: The Gujarat government has recently passed the Labour Laws Bill (December 2015), to give an impetus to industrialization. The key reform includes a provision for out-of-court settlement to speed up the process labour related dispute resolutions.
Electronics and IT SEZ in Gujarat IT/ITeS and electronics regions
Gujarat Government enacted the Special investment regions (SIR) act in 2009 with the objective of creating large size investment regions in the state and develop them as global hubs of economic activity supported by world class infrastructure. The state has three SIRs for electronics manufacturing. SEZ are special duty free enclaves for the purpose of trade. These zones are self-contained and integrated, having their own infrastructure and support services. Apart from state-of-the-art infrastructure and access to a large skilled work force, the SEZ also provides enterprises with attractive incentives. The state has one electronics SEZ at Gandhinagar and 14 IT/ITeS SEZs - six at Ahmedabad, four at Gandhinagar, three at Vadodara and one at Valsad. Ahmedabad Gandhinagar Viramgam Halol-Savli Vadodara Electronics SIR IT/ITeS SEZ Electronics and IT/ITeS SEZ
Tourist flow*
Navlakhi Valsad
Promotion of IT/ITeS and electronics industries
Gujarat Government introduced a new IT policy to provide a proactive and industry-friendly climate for the IT industry. Incentives and assistance would be provided in allotment of land, development of IT/ITeS parks, stamp duty concession, electricity duty exemption and capital assistance on lease rentals. The policy also intends to establish the state as a preferred IT destination for micro, small and medium enterprises (MSMEs) by providing assistance on quality certification, technology acquisition fund, skill enhancement, patent assistance, simplification of labour laws, subsidy on bandwidth for connectivity and exemption from zoning regulations. Gujarat Government introduced new Electronics policy with the aim of establishing a self-reliant ESDM industry that caters to needs of domestic and international market. The policy includes development of human resources, creation of local demand for electronics products, creation of eco-system for innovation and R&D, and incentives such as VAT/CST subsidy, single window clearance, uninterrupted power supply, registration and stamp duty concession and interest subsidy. Gujarat Government, recognising the need for additional support for Electronics & IT/ITeS startups and keeping this at the centre of its strategy as recognized by the Government of India, through ‘Start-up India initiatives and to supplement efforts in that direction has decided to come up with a focused policy for Start-ups in Electronics & IT/ITeS sector.
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Project Information Electronic Manufacturing Clusters (EMCs) in Gujarat Ahmedabad Vithalapur Gandhinagar Sanand Halol Vadodara Jambusar Greenfield EMCs
Tourist flow*
Bharuch
Brownfield EMCs Upcoming Greenfield
Location suggested
Key highlights Talukas
4 (Mansa, Kalol, Dahegam, Gandhinagar)
Gram panchayats
302
Area
2140 sq. km
Population
13,91,753
Literacy rate
85.77%
Focus areas
Electronics, textiles, IT -ITES
Gandhinagar is a capital city of Gujarat state and has seven special economic zones and 10 industrial estates along with creative IT Park and Gujarat International Finance Tech City (GIFT) It is considered as an emerging ‘Knowledge Hub’ with the establishment of various educational institutes such as IIT and IIMs. Various computer hardware associations such as Gandhinagar Computer Hardware Association (GCHA) and Gujarat Informatics ltd (GIL) have their presence in Gandhinagar. Gandhinagar has been selected as one of the 100 Indian cities to be developed as a smart city under PM Narendra Modi’s flagship Smart Cities Mission.
Reasons for selecting Gandhinagar
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Project Information Infrastructure availability Logistics & connectivity
Rail
Road
Gandhinagar is well connected to the metropolitans of western India. Many trains with Mumbai as their destination pass through Gandhinagar, which facilitates an easy flow of tourists from all over the western India.
Air
Gandhinagar is connected to Surat, Mumbai, and Navi Mumbai through National Highway 8A. It is connected to Ahmedabad, Jaipur, Udaipur, New Delhi and Chandigarh via National Highway 8C.
Port
Sardar Vallabhbhai Patel International Airport located in Ahmedabad is 18 km away from Gandhinagar and provides connectivity with domestic flights to the metropolitan cities and other major cities of India. It also offers international flight connectivity to major countries across the world.
Below are the ports that can be leveraged (distance from Gandhinagar: Dahej – 262 Km Kandla – 306 Km Mundra – 367 Km
Utilities Water
Gujarat has a state-wide “water supply grid” spread across 1,20,769 km that aims to serve 75% of Gujarat’s population. Gujarat Industrial Development Corporation (GIDC) is responsible for ensuring consistent water supply in industrial areas.
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Power
The state is self-sufficient in power with its present generating capacity of 23,973 MW (including about 4,385 MW of renewable energy). Gujarat boasts of 24 hour – 3-phase uninterrupted power supply.
Project Information Solar photovoltaic cell manufacturing process1 1. Loading The wafers are loaded on the load cell line (LCL). They are then analysed through cameras to detect the geometry of the wafer and micro-cracks.
2. Etching This process textures the surface of the wafer so that the sunlight gets reflected rather than trapped. Wafers are rinsed with a strong base then like potassium hydroxide followed by acids like nitric acid.
3. Doping
Layer of diluted phosphoric acid is applied on the wafer through the phosphorous mist. Phosphorus doping is responsible to form the P-N junction on the wafer.
4. Diffusion Diffusion is usually performed with using a gas/paste dopant. Cells are introduced in the diffusion furnace/conveyor furnace with a common Phosphorus dopant (such as POCl3), to create the N junction.
5. PECVD Anti reflective coating is applied on the wafer through the Plasma Enhanced Chemical Vapour Deposition (PECVD) machine to minimise the reflection of the sunlight.
1 The
6. Co-firing The PV cells go through the printing cycle in which pastes of silver and aluminium are applied to the back side of the cell while another silver composition is printed on the front to serve as the collector grid to help the flow of electrons.
7. Sorting
The cells are finally sorted based on efficiency, colour, voltage/current into various categories.
process depicted is indicative and may involve further sub-steps and other processes as well
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Project Information Solar photovoltaic module manufacturing process2 1. Testing Cells are tested on different parameters like open circuit voltage, short circuit current and maximum power point current and voltage to evaluate their performance.
2. Cell Cutter Laser cutter machine cuts cells according to the size of the module being produced.
3. Tabber & Stringer
Tabber & stringer assembles and welds the PV cells together. Tabber connects ribbon on cells whereas the stringer interconnects the cells in a series by soldering the ribbon on the bus bar of the cell.
4. Bussing Soldering In this process, several PV cell clusters are joined together to produce a complete PV module. There are typically 20–80 PV cells in a module.
5. Lamination The process joins the layers forming the module ensuring protection to the cell against dust, moisture, humidity, and other environmental conditions.
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6. Framing Aluminium frame is applied around the PV module with tape applied directly on the laminate or silicon. The frame increases mechanical strength of the module making installation easier.
7. Testing
Series of tests measure the electrical output of the module usually by a sun simulator. The sun simulator is able to reproduce some specific light conditions that measure the peak power of the module.
Manpower required for 1 MW plant: 7
The process depicted is indicative and may involve further sub-steps and other processes as well
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Project Information Prominent solar panel manufacturers – India
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Tata Power Solar Systems Limited
Euromultivision
Bharat Heavy Electricals LimitedElectronics Division
Indosolar
Bharat Electronics Limited
PLG solar
XL Energy Limited
Websol
Moser Baer Photovoltaic Limited
Udhaya Energy Photovoltaics
Surana Solar
Solar Semiconductor
Microsol Power P Limited
USL Photovoltaics Limited
Central Electronics Limited
Ammini
NEPC India Limited
Kotak Urja
Vikram Solar
Emmvee Photovoltaics
Titan Energy
Waaree
Project Information Key considerations
As part of the National Solar Mission, India imposed a stipulation that solar cells and solar modules be locally sourced. Following this, the US filed a case against India at the WTO demanding a level-playing field for Indian and foreign solar component manufacturers. WTO’s panel found that the domestic content requirement imposed under India’s National Solar Programme is inconsistent with its treaty obligations under the global trading regime. India appealed against the WTO ruling in April 2016 and the decision is expected in September 2016.
In 2012, Indian solar cell manufacturers filed an application with the Directorate General of Anti-dumping and Allied duties (DGAD) at the Ministry of Commerce and Industry. In 2014, DGAD proposed duties of $0.48-0.81 per unit on the cells imported from US, China, Malaysia and Taiwan. With the Ministry of Finance not enforcing the duty, Indian solar cell manufacturers again approached the government for imposing anti-dumping duties citing that they are unable to compete on cost with Chinese manufacturers, who had captured the majority share of the market.
Land acquisition remains one of the key considerations. Finding suitable land with good solar irradiance, free from undulations and trees is challenging.
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Project Financials Project cost of manufacturing facility for solar cells and panels3 Project phases
Cost4 (INR/W)
Polysilicon*
22
Wafer*
17
Cell*
20
Module*
9
Total
68
The cost of manufacturing facility will differ as per the production inputs. For instance, the cost for an integrated plant (from Polysilicon to Module) will be INR66/W while the cost for manufacturing Solar Modules (with input as solar cells) will be INR13/W.
Basic infrastructure requirements
Power source: 3 phase line (more than 45 KW);
Air source: 0.8-1.2MP compressed air;
Environment: Enclosed, dust-proof and anti-skid.
* Includes
cost of equipment and facility. benchmark, project cost estimation for c-Si PV manufacturing in the US. 4 Conversion factor: 1USD = INR66. 3 International
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Approvals & Incentives Gujarat Industrial Policy 2015 Government of Gujarat has announced an ambitious Industrial Policy, in January 2015, with the objective of creating a healthy and conducive climate for conducting business and augmenting the industrial development of the state.
Approvals • • • •
Registration of the industrial undertaking Industrial Entrepreneur Memorandum or Udyog Aadhar Non-agriculture land permission and purchase deed registration Consent to Establish from Gujarat Pollution Control Board
Quantum of incentives % of eligible fixed % of Net VAT % of Net VAT to be Category of capital investment Incentive period Project Location reimbursement to paid to (no. of years) entitled for (Taluka) the unit Government Incentive 1 100 90 10 10 2 80 80 20 10 3 70 70 30 10
Net VAT incentives Net VAT incentive will be reimbursed to the industrial undertaking in one financial year will not exceed one-tenth of the total amount of eligible incentive. Classification of the Project Amount (in INR crore) Ultra Mega Industrial Unit 500 Mega lndustrial Unit 400 Large Industrial Unit 150 Micro, Small or Medium Industrial Unit 50
Electronics & IT/ITeS Start-up Policy 2016-21, GoG: Incentives Particulars Stamp Duty & Registration Fee Reimbursement Lease Rental Subsidy Interest Subsidy Patent Assistance Bandwidth Subsidy Skill Certification Grant
Details 100% 50 sqft per employee at the rate of INR15 per sqft per month 9% per annum (ceiling of INR 2 lakhs per year) 75% of cost of obtaining patent (ceiling of INR 2 lakhs Domestic Patent and INR 5 lakhs international patent) 70% of annual charges (ceiling of INR 20000 for 2 years) INR5000 per skill certification per person (INR 1 lakhper annum)
Marketing & Product Development Assistance
Onetime assistance of INR 1 lakh and INR 1 lakh for marketing
Matching Equity Support
25% of raised equity capital from Gujarat Venture Finance Limited (GVFL) (ceiling of INR 5 crores)
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Approvals & Incentives Approvals Industrial approval
Secretariat For Industrial Approval(SIA), New Delhi
Land for project
Allotment of plot/shed in the Industrial Estate from GIDC
Environment clearance
‘No Objection Certificate’ from the Gujarat Pollution Control Board
Environmental Clearance (EC) from Ministry of Environment and Forest (MOEF)
Incentives from Government of India
Excise duty exemption in respect of machinery and equipment required for setting up of solar energy production projects. Full excise duty exemption for solar tempered glass, solar back sheet, EVA and flat copper wire used in the manufacture of solar PV cells and modules.
Basic customs duty on machinery and equipment required for setting up of solar energy production projects reduced to 5%. Full customs duty exemption on specified raw materials used in the manufacture of solar back sheet % EVA sheet and flat copper wire used in the manufacture of solar PV modules.
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Ministry of New and Renewable Energy, Government of India http://mnre.gov.in/ Gujarat Power Corporation Ltd. http://gpcl.gujarat.gov.in/ Solar Energy Corporation of India http://www.seci.gov.in/ Gujarat Energy Development Agency, Government of Gujarat http://geda.gujarat.gov.in/ Department of Science & Technology, Government of Gujarat
http://www.dst.gujarat.gov.in Gujarat Industrial Development Corporation www.gidc.gov.in Office of Industries Commissioner www.ic.gujarat.gov.in Industrial Extension Bureau
www.indextb.com This project profile is based on preliminary study to facilitate prospective entrepreneurs to assess a prima facie scope. It is, however, advisable to get a detailed feasibility study prepared before taking a final investment decision.
Department of Science and Technology Block No.7, 5th Floor, New Sachivalaya, Gandhinagar Phone / Fax : 079-23259999 Email:
[email protected] https://dst.gujarat.gov.in/index.htm
