How to Start a Solar Panel Manufacturing Business

The solar panel manufacturing industry in India is one of the fastest growing, having expanded by about 50% in the last decade alone. Solar energy is a renewable energy source that, unlike fossil fuels, will not deplete. It is unquestionably not just environmentally green but also cost-effective. As a result, the government has launched a number of programs and incentives, such as the PLI scheme, to stimulate the manufacturing of solar panels in India. The global solar energy industry was worth USD 59 billion in 2020 and is predicted to reach USD 230 billion by 2028. Because of environmental restrictions, some industrial firms are installing solar rooftops, creating a large market for solar panel manufacturing industry owners. Many components are required for the complete setup of a solar panel production facility, including a solar panel, DC distribution box, battery, panel stand, wire, tracking structures, and so on. Solar panels are used to capture energy from the sun and convert it into electricity using solar cells. Read this blog to learn how to start a solar panel manufacturing business step by step.

Raw Materials Required To Start Solar Panel Manufacturing Business:

- Solar cells

- Aluminum frame

- Glass sheet

- Wire

- Plexiglass

These are the raw materials required to start solar panel manufacturing plant.

Machines Required To Start Solar Panel Manufacturing Business:

- Solar stringer machine

- Solar cell layup machine

- Sun simulator

- Solar laminator

- Electroluminescence tester

- Silicone dispenser

- Automatic station for manual bussing

- Plastic cutting machines

These are the machines required to start solar panel manufacturing business.

Solar Panel Manufacturing Process:

- Polysilicon is produced from quartz using a carbon arc in an electric arc furnace.

- At high temperatures, the resulting polysilicon is combined with boron to make p-type semiconductor material.

- An ingot or silicon block is made by casting molten polysilicon in a block.

- Ingots are split into wafers using wire saws.

- Wafers should go through a solar etching procedure to create hexagonal or rectangular wafers that can be placed together in solar cells.

- The wafers are introduced to a phosphorous diffusion furnace after being cleaned to generate an N-type semiconductor layer.

- To prevent sunlight loss, an anti-reflective coating is added to the top of the cell.

- Solar cells are connected using electrical connections.

- By displacing the diffused phosphorous layer, aluminized conductive material is deposited on the rear surface of each cell.

- Each solar cell is then tested before being assembled into a solar panel structure. A 48-cell panel is suitable for small residential roofs, whereas a 60-cell panel is the common size.

Solar Panel Types: 

1) Monocrystalline solar panels:

Monocrystalline solar panels are the most traditional type of solar panel and are made out of monocrystalline solar cells made of pure silicon. These cells are more expensive since they produce more power, take up less space, and last longer. These panels will have a huge surface area for increased sunlight absorption and an efficiency of 18 to 24 percent. Monocrystalline solar panels are more heat resistant and can endure for up to 30 years. This monocrystalline solar panel production can be started by entrepreneurs wishing to start a solar panel manufacturing plant.

2) Polycrystalline solar panels: 

These panels, also known as multi-crystalline panels, are considered mid-range panels since they are less efficient than monocrystalline panels but are more cheap. Raw silicon is melted and placed into a square mold to manufacture wafers. Polycrystalline solar panels are made of poly fragments of silicon crystals and generate significantly more electricity than monocrystalline panels due to less freedom for electrons to move in poly fragments of silicon, but the process involved in solar panel manufacturing plant is extremely simple and faster.

3) Thin-film solar panels:

Thin-film solar panels are thin and flexible because the cells used in these panels are 350 times thinner than the crystalline wafers used in the other two types of solar panels. They are composed of layers of semiconducting materials such as silicon, copper indium gallium selenide, and cadmium telluride and have an efficiency of roughly 12%. They degrade faster than crystalline panels. The semiconductor layer is sandwiched between conducting layers, with glass on top to make it seem appealing and suitable for use as solar roof tiles. Customers can minimize installation expenses due to its lightweight structure, making it the most economical panel and known as a second-generation solar panel.

How to Begin a Solar Panel Manufacturing Business:

1) Comprehensive Project Report:

A full project report gives you exceptional clarity by assisting you in estimating the cost required to start a solar panel manufacturing plant, profit predictions, a description of the technology to be used, appropriate marketing tactics, components required to run a successful business, and so on.

2) Financial arrangement: 

Entrepreneurs can use government incentives and bank financing to launch a solar panel manufacturing business. DPR is essential for obtaining a bank loan as well as being eligible for subsidies.

3) Register and obtain necessary licenses and permits:

 Under the compulsory registration scheme, the PV modules must undergo testing from a NABL testing lab and must clear all testing parameters, as well as comply with all terms and conditions.

4) Infrastructure: 

Entrepreneurs can launch a solar panel manufacturing firm by leasing, purchasing, or building infrastructure. It is preferable to have an infrastructure in a convenient position for sales and marketing. Once the infrastructure is complete, the following stage is to purchase and install machines.

5) Purchase of machinery and raw materials: 

Starting a solar panel manufacturing firm necessitates a wide range of machinery, the kind of which is determined by the type and volume of production. Production processes can be manual, semi-automated, or fully automated. It is critical to consult an expert before purchasing machinery.

6) Hire Trained Workers: 

To boost output and efficiency, the solar module manufacturing business requires a trained and skilled workforce. As a result, new businesses must provide regular training sessions for laborers in order to develop their abilities and eliminate production faults in the solar panel manufacturing plant.

7) Marketing and Branding:

 Although marketing is the final phase, it determines the success of the solar panel manufacturing business. The global market for solar panels is rapidly expanding, and manufacturers must develop effective market strategies in order to gain a substantial market share. MNCs and manufacturing plants are installing solar panels on their rooftops, creating massive market prospects.

Solar Panel Manufacturing Business Plan: 

Before beginning production, it is critical to have a well-defined solar panel manufacturing business plan. A strong business plan should include your objectives, market research, target market, financial predictions, and marketing tactics. You should also consider investing in cutting-edge technology and equipment to ensure that you can efficiently generate high-quality solar panels. It is critical to develop a precise financial plan that incorporates manufacturing costs as well as predicted revenue. Before launching a solar panel manufacturing firm, it is critical to study the market size, consumer preferences, current trends, and so on. You should also consider investing in cutting-edge technology and equipment to ensure that you can efficiently generate high-quality solar panels. You must have a complete marketing and sales strategy to efficiently reach your target clients.

Future Growth of the Solar Panel Manufacturing Industry: 

The Indian government has increased import duties on solar panels by 30% in order to encourage solar panel manufacturing companies to enhance production and assist local producers. The central government is granting bank loans and subsidies to entrepreneurs who want to launch a solar panel manufacturing business, with the goal of installing 280 GW of solar power by 2030. The PLI scheme receives a total of INR 24,000 crores, including 19,500 crores allotted in Finance Minister Nirmala Sitharaman's Budget 2022. As a result, solar panel manufacturing in India is expected to increase 400% by 2025, making it one of the most profitable manufacturing company ideas in India.