DETAILED PROJECT REPORT ON SOLAR

MODULE MANUFACTURING (60 MW)

1. Introduction
There are different energy sources available in India such as Hydro, Nuclear, Small
hydro, Wind Energy, Biomass power, Biogas co-generation, Biomass Gasification
and Solar energy, but out of all these energy, the solar energy is meritorious. Solar
energy is independent, environments friendly and pollution free. It works even at
power cut, consumes very less energy, works day-night, and works in summer,
rainy, winter means all the year along and woks programmable. Above all it does
not have electrical hazard and it has got negligible maintenance. By utilizing Solar
energy apparatus like Emergency lamps, Lanterns, Cooker, Home lights, Street
lights, Torch, Fan, Radio, T.V, Tape, Power pack, UPS for Computers/Lap-top,
Mobile charger, water heating system, Room heaters and also Power plants can be
operated successfully.

2. Market and Demand Aspects:

There are large numbers of units, manufacturing solar energy products in Small
Scale Sector in the country. Since domestic apparatus/Gadgets, equipments/
appliances and machineries are operated successfully by Solar energy, so the
market potential is tremendously high now and is also expected in the future. As
there are few MSMEs available in this sector so, the Solar products shall create a
tremendous market place in and around the state.

3. Basis and Presumptions:

i) The basis for calculation of production capacity has been taken on three shift
basis assuming 95% line up time.

ii) The maximum capacity utilization on three shift basis is for 320 days a year.
During first and second halves of the first month of operations, the capacity
utilization is 80% and 90% respectively. The unit is expected to achieve full
capacity utilization from the second month onwards.

iii) The salaries and wages cost of raw materials, utilities, are based on the
prevailing rates, in and around Delhi NCR as in 2016-17. These cost factors are
likely to vary with time and location.

iv) Interest on term loan and working capital loan has been taken at the rate of 14%
on an average. This rate may vary depending upon the policy of the financial
institutions/agencies from time to time.

v) The cost of machinery and equipment’s of a particular make/model and prices

are those prevailing in 2016-17 and are presumed as approximate.

vi) The break-even point percentage indicated is of full capacity utilization.

vii) The project preparation cost etc. whenever required could be considered under
pre-operative expenses.

viii) The essential production machinery and test equipment required for the project
have been indicated. The unit may also utilize common test facilities available at
Electronics Test and Development Centers (ETDCs) and Electronic Regional Test
Laboratories (ERTLs) set up by the State Governments and STQC Directorate of
the department of Information Technology, Ministry of Communication and
Information Technology, to manufacture products conforming to Bureau of Indian
Standards.

4. Implementation Schedule

The major activities in the implementation of the project has been listed and the
average time for implementation of the project is estimated at 14 weeks:

S.No. Name of the Activity Period(Estimated)

in weeks
1 Preparation of Project Report 1
2 Registration and other formalities 2
3 Financing by Investors 2
4 Plant and Machinery
a) Placement of orders 2
b) Procurement 4
c) Power Connection/Electrification 2
d) Installation/Erection of machinery/Test 3
Equipment
 5 Procurement of Raw Materials 3
6 Recruitment of Technical Personnel etc. 2
7 Trial Production 1
8 Commercial Production 2

Notes:

1. Many of the above activities shall be initiated concurrently.

2. Procurement of raw materials commences from the 8th week onwards.

3. When imported plant and machinery are required, the implementation period of
project may vary from 12 weeks to 15 weeks.

5. Technical Aspects

I. Process of Manufacture

The process of solar panel manufacturing as depicted in the figure below consists
of the following stages:

a) Glass Cleaning:

The glass used in the Panel is cleaned by the glass cleaner to remove any dust
which might affect the amount of sunlight reaching the panel.

b) Tabbing Stringing:

Automatic Tabber Stringer produces a string of solar cells soldered and connected
by a ribbon soldered exactly on the bus bar of the cell by the Tabber Stringer.

c) Lay-up:

The Gantry Lay-up machine puts the string of cells in between sheets of Ethyl
Vinyl Acetate (EVA) after manual interconnection of the strings by soldering of the
bus bars of the strings together and are subsequently arrayed.

d) Lamination:
Sealed into ethylene vinyl acetate, the strings are put into a frame that is sealed
with silicon glue and covered with a mylar back on the backside and a glass plate
on the frontside. This is the so called lamination process and is an important step in
the solar panel manufacturing process.

5. IEC Certifications:

a) IEC 61215: It covers the parameters which are responsible for ageing of PV
modules. It includes all the forces of nature (Sunlight, climate & mechanical
load). The objective of this test sequence is to determine the electrical and
thermal characteristics of the module and to show within reasonable
constraints of cost and time that the module is capable of withstanding
prolonged exposure in general open air climate.

b) IEC 61730: This standard has been issued to examine the safety
qualification of the module against electrical shock hazard, fire hazard,
mechanical and structural safety.

c) IEC 61701: This standard has been issued for testing the module with salt
mist corrosion with sodium chloride moisture. The salt spray test is a
standardized test method used to check corrosion resistance of coated
samples. Salt spray test is an accelerated corrosion test that produces a
corrosive attack to the coated samples in order to predict its suitability in use
as a protective finish.

6. Plant capacity per annum:

a) Quantity: (1,87,500 Panels of 320 Watt each or 2,40,000 Panels or 250 Watts
each)

b) Value : Rs. 24/Watt

Total Value = (a)*(b) = Rs. 1,44,00,00,000

7. Quality Control, Certifications and Standards

As maintaining quality is one of the major challenges for any organization,

following quality control checks have been put in place to ensure the end product
complies with all the laid down norms by the regulatory bodies.

(i) The solar cells used in the production of the Panel are Class-A cells to ensure
quality and stated efficiency.

(ii) The Plant consists of 2 Electroluminescence Testers, 2 Peel Testers, 1 Cell

Tester and 1 Solar Simulator which checks for microcracks, bad sectors (areas that
do not generate electricity) and efficiency parameters. Any cell/module whose
output does not fall in the acceptable range is not used.

(iii) The output cell would comply with IEC 61215 Edition 2, IEC 61730 (Part-I
and Part-II) and all the requirements laid down in the FY 2012-13 by Ministry of
New and Renewable Energy (MNRE).

Energy conservation
With the growing energy needs and shortage coupled with rising energy cost a
greater thrust in energy efficiency in industrial sector has been given by govt. of
India since 1980. The energy conservation act 2001 has been enacted on 18th
August 2001, which provides for efficient use of energy, its conservation
& capacity building of Bureau of Energy Efficiency created under the act. The
following steps may help for conservation of energy:

i. Adoption of Energy conserving technologies, production aids and testing

facilities.

ii. Efficient managements of process/manufacturing machineries and systems QC

and testing equipments for yielding maximum energy conservation.

iii. Using efficient temperature controlled soldering and disordering stations can
obtain optimum use of electrical energy for heating, during soldering process.

iv. Periodical maintenance of motors, compressors etc.

v. Use of power factor correction capacitors, proper selection and layout of lighting
System, timely switching on off of the lights use of CFLs wherever Possible.

8. Marketing Plan:

We intend to focus on three different target segment for sales with different
margins as per the segment.

a) OEM: We plan to tap manufacturers for OEM which require their

customized modules as per their need. We plan to keep a margin of Re.1 to
Rs. 1.50 per watt in this segment. We calculate our 20 MW of annual
production dedicated for this segment. It will include a mix of smaller and
medium sized modules.

b) Retail: We plan to create a channel for retail sales which will include a mix
of dealers and distributors. The rural areas will be tapped by this segment.
The margin would be Rs. 4 to Rs. 5 per watt and we plan to push 15 MW of
our annual production into this segment. The modules would be mostly
medium sized modules.

c) EPC: The EPC segment is one of the most competitive segments in the solar
industry. The requirement mostly consists of polycrystalline 250 Wp and 320
Wp modules. We intend to keep a margin of Rs. 2 per watt and we plan to
push 20 MW of our production into this segment.

The additional prospects would come up by our participation in various

expositions, seminars, conferences, etc. We will use all the available platforms
intended to encourage a buyer-seller meet to gradually create a brand name. This of
course will take some time.

Our USPs will include:

a) The highest quality manufacturing equipments to be used in the production.
b) A high grade testing environment to maintain quality testing of all the
modules before shipment.
c) Will include professionals with 15 years plus experience in solar industry.

9. Financial Aspects

A. Fixed Capital
(i) Land & Building: Leased Land

Cost for constructing of the Shed & Partition Cabins: Rs. 9,00,00,000/-

Total Buildup Area 3000 Square Metres

Office and Store 500 Square Metres
Factory Shed 1500 Square Metres
Lab & Packaging 200 Square Metres
Open Space 800 Square Metres

(ii) Machinery and Equipment’s:

PRE LAMINATION

S.No. Equipment Description Qty

Auto Stringer (Model: AUSTR 2200)
1 1
Automatic Layup
2 1
(Model:ALM-2537H01-JGM)

3 Glass Loading and EVA layup 1

4 Bussing Conveyor 4
5 EVA/TPT Rack with 2 axis conveyor 1
6 Reject IN 1
7 EVA/TPT layup CV 1
8 Inline Visual Inspection 1
EL tester Pre lamination
9 1
(Model:EL-MILS-2760)

10 2-axis sorting conveyor 1

11 Reject Conveyor 1
 12 Alignment CV with Passage 1
13,14 Auto Lifter 1
15 Alignment CV with Passage 1

LAMINATION

16 Auto Laminator JCCY2345-T 1

POST
LAMINATION

17 Manual Trimming Conveyor 1

18 2 Axis CV 1
19 1 Axis CV with passage 1
20 2 Axis CV 1
21 1 AXIS CV with Alignment 1
22 Framing Machine (In-Line) 1
22 JBOX mounting CV 1
23 JBOX soldering/potting CV 1
FINAL
TESTING
25 Cleaning Conveyor 1
26 Hipot CV with Alignment 1
27 Sun Simulator with Automation 1
28 EL tester Post lamination ((Model: 1
EL- MI3S-690)
29 Labeling CV 1
30 Unloading CV 1

Control Unit 1
 OFFLINE
EQUIPMENT
1 Cell tester 1
2 Bus Bar Cutting Machine 1
3 Manual EVA/TPT cutting 1
4 Automatic JBOX Glue Dispenser 1

5 Laser Scriber Machine 1

6 Module transfer cart 2
7 Glass transfer cart 2
8 EVA&TPT transfer cart 2
9 Repair Table 1
10 Hipot Tester 1

Total Cost of Machines = INR 5,00,00,000/-

(iii) Pre-operative Expenses and Facilities: INR 2,00,00,000/-

Total Fixed Costs (CAPEX) = (i) + (ii) + (iii) = INR 16,00,00,000/-

B. Working Capital (per month)

(i) Staff and Labour

S.No Designation Strength Salary(INR) Total(INR)

1 Production Executive 60 15,000 9,00,000
2 Senior Production Executive 10 20,000 2,00,000
3 Supervisor 3 25,000 75,000
4 Production Manager 1 50,000 50,000
5 Store Manager 2 20,000 40,000
6 Sales Coordinator 2 25,000 50,000
 7 Sales Executive 5 25,000 1,25,000
8 Sales Manager 1 1,00,000 1,00,000
9 Logistics Manager 1 40,000 40,000
10 Office Boys 5 10,000 50,000
11 Security 3 10,000 30,000
Total 16,60,000
Add Perquisites @ 15% of the salaries 2,49,000
TOTAL 19,09,000

(ii) Raw Material required (per month)

S.No. Description Quantity Rate Total

1 Solar Cell 11,52,000 52 5,99,04,000
2 Solar Glass 19,200 450 86,40,000
3 EVA Sheets 64,320 85 54,67,200
4 Tedlar Back sheet 31,680 184 58,29,120
5 Solar Ribbon 5,184 742 38,46,528
6 Flux 192 600 1,15,200
7 Solder Wire 384 1200 4,60,800
9 Inner Label with Barcode 19,200 2 38,400
10 RFID 19,200 8 1,53,600
11 Aluminum Channel 19,200 600 1,15,20,000
12 Junction Box 19,200 260 49,92,000
13 Back Label 19,200 2 38,400
14 Earthing & QC Pass Sticker 19,200 1 19,200
15 Packing Items 19,200 200 38,40,000
TOTAL 10,48,64,448
(iii) Utilities required (per month)

S.No. Utility Required Cost(INR)

1 Air 1,00,000
2 Water 10,000
3 Electricity 20,00,000
TOTAL 21,10,000

(iv) Other Contingent Expenses (per month)

S.No. Description of the Expenses Value (INR)

1 Postage and Stationery 5,000
2 Telephone 35,000
3 Consumable Stores 20,000
4 Repair and Maintenance 30,000
5 Transport and Conveyance 20,000
6 Advertisement, Publicity and Marketing 5,00,000
7 Insurance 1,00,000
8 Miscellaneous Expenses 25,000
TOTAL 7,35,000

(v) Total Recurring Expenditure (per month) = (i) + (ii) + (iii) + (iv)

= INR 10,96,18,448

C. Total Capital Investment

S.No Type of Capital Value

1 Fixed Capital (CAPEX) 16,00,00,000
2 Working Capital (1 Month) 10,96,18,448
 TOTAL 26,96,18,448

D. Financial Analysis

(i) Cost of Production (per annum)

S.No Items Value

1 Total Recurring Expenditure 1,31,54,21,376
2 Depreciation on Machinery and Equipment @14% 70,00,000
3 Depreciation on tools, jigs, dies and fixtures 9,00,000
@25%
4 Depreciation of office equipment and furniture 7,50,000
@20%
TOTAL 1,32,40,71,376

(ii) rnover (per annum)

a) Annual Production = 60 MW

b) Rate per Unit = Rs. 24 per Watt

c) Turnover = (a)*(b) = 1,44,00,00,000

(iii) Net Profit (EBIT)

= Turnover - Cost of Production = Rs. 1,44,00,00,000 - Rs. 1,32,40,71,376

= INR 11,59,28,624

(iv) Net Profit Ratio = 0.08

(v) Profit after Tax (PAT) = INR 8,11,50,036

(vi) Internal Rate of Return = 23%

(vii) Break Even Point

Break Even Point in Units = Fixed Costs / Contribution Margin per unit

= 369685 units

Break Even Achievement time = 23 months

Additional Information

(a) The Project Profile may be modified/tailored to suit the individual

entrepreneurship qualities/capacity, production programme and also to suit the
locational characteristics, wherever applicable.

(b) The Electronics Technology is undergoing rapid strides of change and there is
need for regular monitoring of the national and international technology scenario.
The unit may, therefore, keep abreast with the new technologies in order to keep
them in pace with the developments for global competition.

(c) Quality today is not only confined to the product or service alone. It also
extends to the process and environment in which they are generated. The ISO 9000
defines standards for Quality Management Systems and ISO 14001 defines
standards for Environmental Management System for acceptability at international
level. The unit may therefore adopt these standards for global competition.

(d) The margin money recommended is 25% of the working capital requirement at
an average. However, the percentage of margin money may vary as per bank's
discretion.