Академический Документы
Профессиональный Документы
Культура Документы
AnalysisofSolarMarketThenewsourceofenergy!
HAVE A VERY CLEAR UNDERSTANDING OF WHAT YOU WANT, SWATI DAS NMIMS MUMBAI 2016-18
About LatestPosts
A PGDM graduate from BIMM, Pune who is currently working with HCL Technologies in Chenn
Digital Marketing enthusiast; a Social Worker and Traveler by soul.
(http://ideasmakemarket.com/members/Achira_Banerji/)
Globally, the solar power industry has been growing rapidly in recent years. In 2010, an estimated total capacity of
17,000MWwasinstalledglobally.SolarradiationoverIndiais5000trillionKWH/yearinmostpartsofIndia,clear
sunnyweatherisexperienced250to300daysayear.Thecountryreceivesmorethan4kWh/m2/day.Majorstatesput
together then 979.4MWp is the total amount of energy derived in form of solar. Thus this puts India amongst the highes
receivingcountriesoftheworld.
FavorablepolicysupportfromthegovernmentismakingIndiaahotspotforsolargeneration.Governmentregulatesthesola
MNRE (Ministry of Renewable Energy) and financial assistance is provided by IREDA (Indian Renewable Energy Deve
Limited.
SolarpowerfromSPV(SolarPhotoVoltaic)systemandsolarconcentratingsystemisproducedinenvironmentalfriendlym
generateanywasteorpollution,andmeetstheenergyrequirementindomesticsectorindecentralizedmannerquiteefficiently
TheexhibitbelowcapturestheirestimatesaboutsolarmarketinIndiawhichshowsthatthereisasteadygrowthinthes
201718.
http://ideasmakemarket.com/2013/09/augentry12analysisofsolarmarketthenewsourceofenergy.html
1/8
5/31/2016
AnalysisofSolarMarketThenewsourceofenergy!
KeyDrivers:
Costreductionisachievementofeconomiesofscale,
Technologicaladvancements
Emergenceoflowcostmanufacturinglocations.
ThekeydriverofthegrowthofthissectoristheconceptofGridParity.Thisreferstothepointwhenthecostofthesolarpow
ofconventionalpower.Intheexhibitbelow,itshowsabandrepresentingsolarrooftopcosts.Thebandvariationsignifies
thedifferencebetweencostandprice(includesmarginsacrossthevaluechain).Itisexpectedthatthesolartarifftolieanyw
banddependingonthebargainingpowerofthedevelopers.AndIndiawillreachitsgridparityby201920.
Consumercategories:
Domestic
Agricultural
Solarpoweredequipmentismoreenvironmentallyfriendlyandeconomicalinitsoperationcomparedtoequipmentspower
combustionengine(ICE)ornuclearpower.ForirrigationanddrinkingwatersolarPVwaterpumpingsystemsareusedinI
pumpingsystemworksonpowergeneratedusingsolarphotovoltaicsystem.Thesolarenergyisconvertedintoelectricity
voltaicarray.
The residential consumer category contributes to about 29 percent of the total Indian Power requirement this is expected
percentby202122,accordingtoKPMGreport.Itisexpectedthathighendresidentialconsumerswillbeproactiveinadopt
given their higher power tariffs. A large number of these consumers are likely to start adopting solar power from 20
governmentinvolvementwillberequiredinencouragingnonhighendresidentialandagricultureconsumerstousesolarpow
SolarMarketSegment:
GridConnectedSolarPotential
OffGridConnectedSolarApplicationPotential
SolarWaterHeater(SWH)
Grid Connected Solar Potential includes Residential Rooftops and Utility Scale Solar power (CSP and PV). And Offgrid
ApplicationPotentialincludesSolarPoweredAgriculturalPumpsetsandSolarpoweredTelecomtowers.
http://ideasmakemarket.com/2013/09/augentry12analysisofsolarmarketthenewsourceofenergy.html
2/8
5/31/2016
AnalysisofSolarMarketThenewsourceofenergy!
In the offgrid space, solar power is already cost competitive with alternatives in certain applications. For example, teleco
attractivemarket(http://ideasmakemarket.com/iiftinterviewexperienceayushsethia)forsolarPVinstallations.AndSola
(SWH)applicationscouldbeusedinresidential,commercialaswellasindustrialsectors
Thewholeindustrycanbeanalyzedusing:
PESTAnalysisand
PotersFiveForceModel
The industry can be analyzed into the following four categories using PEST analysis which is Political, Econom
Technological.
Political:
ThegovernmenthashugepresenceintheSolarEnergymarket.ItregulatesthemarketthroughMNRE(MinistryofRenew
financial assistance is provided by IREDA (Indian Renewable Energy Development Agency Limited). One of the eight mi
NAPCCistheJawarlalNehruNationalSolarMission(JNNSM)whichwaslaunchedinlate2009.Themissiontargets22,0
powergeneration.
Therearetwomajorfinancingmechanismsprovidedbygovernment,i.e.
Debt:ProjectFinance
Equity:PrivateEquityandVentureCapital.
GeneraleligibilitycriteriaforSolarenergyloans:
Applicants:
Public,PrivateLimitedCompanies,NBFCsandregisteredsocieties.
Individuals,ProprietaryandPartnershipfirms(withapplicableconditions)
StateElectricityBoardsandeligibletoborrowloansfromPowerFinanceCorporation(PFC)orRuralElectrificationCorporati
Governmentalsoprovides30%subsidyforinstallationofSolarPanelathome.
Economical:
IntherecentroundofreverseauctioningprocessforthesolarprojectsundertheNationalSolarMission,thepricediscovery
was in the range of INR 10.49/kWh to INR 12.24/kWh for solarthermal and between INR 10.59/ kWh to INR 12.76/ k
projects.
Thebudgetshasalsoencouragedprivatesolarcompaniesbyreducingcustomsdutyonsolarpanelsby5%andexemptingexc
photovoltaicpanels.ThegovernmenthasinitiatedaRenewableEnergyCertificate(REC)scheme,whichisdesignedtodri
lowcarbonenergyprojects.
Social:
AccordingtotheKPMGreport,thegridparityfortheconsumercategorydomesticandagriculturein201920,basedonspe
specificcosteconomics,theadoptionforsolarislikelytohappenearlier.Certainstateswillreachthispointearlier.Forexam
Rajasthan,GujaratandTamilNaduareexpectedtoreachthispointearliernotonlybecausetheyhavehighersolarinsulation
Technological:
http://ideasmakemarket.com/2013/09/augentry12analysisofsolarmarketthenewsourceofenergy.html
3/8
5/31/2016
AnalysisofSolarMarketThenewsourceofenergy!
Itisexpectedthatthesolarpricestodeclineattherateof57percentperannumoverthenextdecade,thisisbecauseglob
SolarPVsystemshavedroppedsignificantly
Thesolartechnologyhasoligopolycharacteristicsdominatedbyasmallnumberofplayers.
TheSolarmarketcanbebestexplainedwiththeMichaelPortersFiveForceModel,whichcanbeexplainedwiththefollowin
SuppliersPower:
Solar technology has oligopoly characteristics dominated by a small number of players, but then with government interve
awarenessthepriceofsolarenergyiscomingdown.Thetimetakentoreachgridpartywouldalsodependonthebargain
developers.Degreeofinfluenceexertedovertheindustrybythesuppliers:
Productisuniqueandscarce,
SuppliersaremoreconcentratedintheEuropeanmarketbecauseofbettertechnology.
Highswitchingcostsforthefirmintheindustryishigh.
21
TheSuppliersofthesolarenergysuppliesalsotoomanyindustrieslikerural,agriculture,hospitals,hotels,etc.
9
http://ideasmakemarket.com/2013/09/augentry12analysisofsolarmarketthenewsourceofenergy.html
4/8
5/31/2016
AnalysisofSolarMarketThenewsourceofenergy!
Thereisnosubstituteproductforsolar.
Theproductiscriticalforthecompany.
2
BuyersPower:
Theindustrysmajorpowerlieswithinthebuyersside.Sincetheawarenessinthemarketisverylow,onlyasmallpartofres
i.e. high end residential consumers is the proactive group. But for the nonhigh end residential consumers governme
important.Degreeofinfluenceexertedovertheindustrybythebuyers:
Forcingdowntheprices,sincetheconsumersarepricesensitive
Consumersaredemandingintermsofvalueadded,higherquality
Lowswitchingcostsforthebuyers
Substituteproductsareavailable
Threatofnewentrance:
Thethreatofnewentranceisnotthatprominentnowbutitwillbehighassoonasgridparityisreached.Sincethesolarp
downandthesupportfromthegovernmentwillbethemajordriverinthisregard.Nowthesegmenthashighentrybarrierbut
barriersothesegmentisattractive.Theexitbarrierisexpectedtogodownafterthegridparityisreached.Degreeofinfluenc
industrybythethreatofnewentrance,are:
Lowscaleofeconomiesbeforethegridparity.
Thetechnologyisnotprotected.
Productisnotdifferentiated.
Governmentpolicymakestheentrybarrierlowerbutafterthegridparityitisexpectedtogodown.
Themajorbarriertoentryisthedistributionchannel.
Threatofsubstituteproduct:Anotherprominentpowerintheindustryisthethreatofsubstitute.Thesubstitutei.e.conv
ofenergyarealreadypresentinthemarket(http://ideasmakemarket.com/ximborganisestalkonagriinputmarketing)
bythem.Degreeofinfluenceexertedovertheindustrybythethreatofsubstituteproduct,are:
Therearemanysubstituteproductsavailable
Customersswitchingcostislowastheycaneasilyswitchovertothemastherepriceisless.
IndustryRivalry:Theintensityofrivalryfromthedirectcompetitioni.e.companiesdealinginsolarequipment,islowbut
competition i.e. companies dealing in conventional residential pump it is very high. Degree of influence exerted over th
industryrivalry,are:
Marketiscrowdedwithindirectcompetitionfromindirectcompetitionbutwithsomedirectcompetition.
Switchingcostfortheconsumersfortheconventionalmarketislow.
Solarpowerhastremendouspotentialtomeetalmost7percentofourpowerneedsby2022,mitigate2.6percentofourcarb
thatyearandsaveover71MTPAofimportedcoalinthatyear(equaltoUSD5.5bnofimports).Theimperativeforactionto
therefore is the case for persistence and consistency on part of the Government. For the industry, this represents a signif
opportunity.InvestmentopportunitiesacrossthevaluechainfrommanufacturingtoEPCtoprojectdevelopmentoverthenext
Related Post
http://ideasmakemarket.com/2013/09/augentry12analysisofsolarmarketthenewsourceofenergy.html
5/8
5/31/2016
AnalysisofSolarMarketThenewsourceofenergy!
Energy Security :
Global Energy
Power sector in
Coal Block DePerspectives,
Prices: Will It Fuel
India- An overview allocations: The
Problems and
Growth?
!
Implications &...
Prosp...
(http://ideasmakemarket.com/2015/02/global(http://ideasmakemarket.com/2013/06/power(http://ideasmakemarket.com/2014/11/coal(http://ideasmakemarket.com/2014/12/energyenergy-prices-will- sector-in-india-an- block-de-
Post Views:
IdeasMakeMarket Comments
Google+ Comments
0Comments
Sortb
Addacomment...
FacebookCommentsPlugin
Events
iCal (webcal://ideasmakemarket.com/wp-content/plugins/dpProEventCalendar/includes/ical.php?calendar_id=1)
RSS (http://ideasmakemarket.com/wp-content/plugins/dpProEventCalendar/includes/rss.php?calendar_id=1)
May2016
Search...
NoEventswerefound.
Members
Newest (http://ideasmakemarket.com/members/) | Active (http://ideasmakemarket.com/members/) | Popular
(http://ideasmakemarket.com/members/)
http://ideasmakemarket.com/2013/09/augentry12analysisofsolarmarketthenewsourceofenergy.html
6/8
5/31/2016
AnalysisofSolarMarketThenewsourceofenergy!
(http://ideasmakemarket.com/members/somya-arora/)
Somya Arora (http://ideasmakemarket.com/members/somya-arora/)
active 2 hours, 10 minutes ago
(http://ideasmakemarket.com/members/abhirup_bhattacharya/)
Abhirup Bhattacharya (http://ideasmakemarket.com/members/abhirup_bhattacharya/)
active 12 hours, 53 minutes ago
(http://ideasmakemarket.com/members/aksh_bhardwaj123/)
Aksh Bhardwaj (http://ideasmakemarket.com/members/aksh_bhardwaj123/)
active 1 week, 5 days ago
(http://ideasmakemarket.com/members/anuradha_srivastava/)
Anuradha Srivastava (http://ideasmakemarket.com/members/anuradha_srivastava/)
active 2 weeks ago
(http://ideasmakemarket.com/members/sanju-rani/)
Sanju Rani (http://ideasmakemarket.com/members/sanju-rani/)
active 2 weeks, 1 day ago
Groups
Newest (http://ideasmakemarket.com/groups/) | Active (http://ideasmakemarket.com/groups/) | Popular
(http://ideasmakemarket.com/groups/)
(http://ideasmakemarket.com/groups/iim-raipur/)
IIM Raipur (http://ideasmakemarket.com/groups/iim-raipur/)
active 4 months ago
(http://ideasmakemarket.com/groups/mba-readers-group/)
MBA Readers Group (http://ideasmakemarket.com/groups/mba-readers-group/)
active 5 months ago
(http://ideasmakemarket.com/groups/mba-iit-kanpur/)
MBA IIT Kanpur (http://ideasmakemarket.com/groups/mba-iit-kanpur/)
active 5 months ago
(http://ideasmakemarket.com/groups/sp-jain-school-of-global-management/)
SP Jain School of Global Management (http://ideasmakemarket.com/groups/sp-jain-school-of-global-management/)
http://ideasmakemarket.com/2013/09/augentry12analysisofsolarmarketthenewsourceofenergy.html
7/8
5/31/2016
AnalysisofSolarMarketThenewsourceofenergy!
Latest Discussions
Best certications for MBA students / aspirants
May 31, 2016
(http://ideasmakemarket.com/forums/topic/best-certications-for-mba-students-aspirants)
rural marketing
January 31, 2016
(http://ideasmakemarket.com/forums/topic/rural-marketing)
Open Case Discussion 3, NMIMS 2016-18 Rebuilding Brand Hockey
January 27, 2016
(http://ideasmakemarket.com/forums/topic/open-case-discussion-3-nmims-2016-18-rebuilding-brandhockey)
2016 IdeasMakeMarket.com India's Finest Management Portal. IdeasMakeMarket and its logo are registered
trademarks.
http://ideasmakemarket.com/2013/09/augentry12analysisofsolarmarketthenewsourceofenergy.html
8/8