Industrial Engineering and Operations Research

Course Project Step 3

Distribution, Financial Analysis and Business Plan

Group B - Solaris

Harikrishnan R
Nakul S Raj
Kanishka Varshini L P
Parth Deshpande
Vishruti Shah
Shashank Ghosh
Abstract

This report outlines a strategic plan for starting a solar panel manufacturing company with a
production goal of 10 MW per year. Important components of the plan are purchase of solar
cells, panel assembly, distribution, sales in locations with strong demand and financial analysis.

The key specifications of this plan are as follows:

Production Capacity 10 MW per year, 30k modules per year

Facility Size Requirement 8500 sq. meters per factory
Module Production Cost 33 INR/W
Module Sales Price 38 INR/W

The Mono-Si solar cells are procured from Scenergy, a reliable Chinese vendor at a price of 2.5
INR per Watt. The plan also includes information regarding the procurement of machinery from
various suppliers to optimize the manufacturing process. The total machinery cost for three
factories is approximately INR 5.1Cr.

The production strategy involves assembling 0.2 crore cells annually, distributed equally among
the factories, with a daily requirement of 2,200 cells per factory. The selected machines and
suppliers aim to ensure efficient and cost-effective solar panel production.

The chosen states, including Rajasthan, Gujarat, Karnataka, Tamil Nadu, and Telangana, align
with high solar energy consumption. The plan optimizes the manufacturing process for
long-term sustainability by leveraging Special Economic Zones, tax exemptions, and favorable
government policies.

Distribution strategies target cities with significant solar panel market demand, such as Delhi,
Mumbai, Bengaluru, and Ahmedabad, along with identified wholesale markets.

This plan presents a viable strategy for starting a cutting-edge solar panel manufacturing firm in
India.
Total Production capacity:

For total production, we have decided our target to be 10 MW per year worth of solar panels,
assuming each solar panel has an average capacity of 330 W1.

This works out to be around 30,303 solar panels assembled per year.

The total solar capacity of India is around 73 GW as of November 20232. We have chosen to
supply and produce close to 0.01% of this for our first year of operations. In 2024, around 17
GW is expected to be commissioned3. We would be assembling solar panels to produce close
to 0.02% of 2024’s total market share.

Factory Locations

The locations for setting up the manufacturing plants have been decided after taking into
consideration the supply chain logistics (proximity to ports), proximity to the market, government
regulations, renewable energy policies and special economic zones.
These special economic zones offer the following incentives:

1. Exemption from customs/excise duties for development of SEZs for authorized

operations approved by the BOA.
2. Income Tax exemption on income derived from the business of development of the SEZ
in a block of 10 years in 15 years under Section 80-IAB of the Income Tax Act. (Sunset
Clause for Developers has become effective from 01.04.2017)
3. Exemption from Minimum Alternate Tax (MAT) under Section 115 JB of the Income Tax
Act. (withdrawn w.e.f. 1.4.2012)
4. Exemption from Dividend Distribution Tax (DDT) under Section 115O of the Income Tax
Act.(withdrawn w.e.f. 1.6.2011)
5. Exemption from Central Sales Tax (CST). Exemption from Service Tax (Section 7, 26
and Second Schedule of the SEZ Act).

1
https://www.forbes.com/home-improvement/solar/how-much-power-does-a-solar-panel-produce/
2
https://www.investindia.gov.in/sector/renewable-energy
3
https://jmkresearch.com/renewable-sector-published-reports/annual-india-solar-report-card-fy2023/
Out of the top 10 states with the highest solar output, we initially aim to cover 8 of them and
then can expand further.

1. Sriperumbudur , Tamil Nadu:

Located southwest of Chennai, it has been a major industrial hub. This region is home to
various manufacturing facilities, including those in the renewable energy sector. The
industrial corridor around Sriperumbudur has attracted investments in solar and wind
energy-related projects. Also, close proximity to Chennai provides great supply chain
integration (logistical support) and access to ports for imports and exports as well we can
tap in the talent in Chennai’s best colleges.

2. Nagpur, Maharashtra:

Located in the center of the country, it is an industrial area in Maharashtra that has
witnessed growth in the renewable energy sector. The government has specifically
created Maharashtra’s first SEZ (Special Economic Zone) focused on renewable energy
near Nagpur. The talent pool and supply chain support are immense, with increased
connectivity to Mumbai port due to the recent opening of the Samruddhi Mahamarg.

3. GIDC Sanand, Gujarat:

Located almost 30 kms from Ahmedabad, GIDC Sanand is a major industrial and
manufacturing hub. Being in the center of the state, it boasts good connectivity to major
ports in Gujarat like Mundra, Hajira and Kandla as well as a broad gauge network. Major
manufacturing sectors here are automobiles, plastic and electronics, thus making it a
right fit.

Distribution and Sales

We plan to sell and distribute our solar panels in the states with the highest solar energy
consumption in the country. Based on our research, we found ten states that consume a good
amount of solar power. Keeping in mind the proximity to these markets, we have fixed our plant
locations.

As of January 2023, the following were the top five states4.

● Rajasthan: Cumulative Solar installation as 16353.07 MW.

The state has the largest solar park in the world, with 2245 MW of installed capacity. The
state government encourages solar parks and hybrid solar projects on a larger scale.

● Gujarat: Cumulative Solar installation as 8747.42 MW

4
https://www.linkedin.com/pulse/top-5-states-india-solar-installations-navitassolar/
 Gujarat has the highest rooftop solar installations in the country. In a significant move,
the Gujarat Electricity Regulatory Commission (GERC) has amended the Net Metering
Rooftop Solar PV Grid Interactive Systems Regulations 2016. This has allowed net
metering for solar rooftop systems with capacities ranging from 1 kW to 1 MW.

● Karnataka: Cumulative Solar installation as 8018.60 MW

The Karnataka State government is implementing various policies to increase solar
installations aggressively. For e.g., the famous Chinnaswamy Cricket Stadium is
completely solar-powered.

● Tamil Nadu: Cumulative Solar installation as 6497.32 MW

Tamilnadu State government is aggressive in implementing different policies to
encourage solar installations.

● Telangana: Cumulative Solar installation as 4657.18 MW

Telangana State government is implementing various policies to increase solar
installations aggressively.

Apart from these, there are five other states that consume a considerable amount of solar
energy. These include Punjab, Maharashtra, Uttar Pradesh, Madhya Pradesh, and Andhra
Pradesh5. These also come under our target locations.

In a more specific sense, we have also identified potential markets in the country to sell panels.
Some of the well-known wholesale markets for solar panels in India include Delhi, Mumbai,
Bengaluru, and Ahmedabad. Markets such as Lajpat Rai Market in Delhi, Lamington Road in
Mumbai, SP Road in Bengaluru, and Relief Road in Ahmedabad offer various solar panels and
related products at competitive wholesale prices. The demand for panels in these markets is
high.

Raw Material and Shipping Vendors and Cost

5
https://energy.economictimes.indiatimes.com/news/renewable/indias-top-10-states-by-installed-solar-po
wer-capacity/68739456
Around 90% of solar cells in the market are made from crystalline silicon (c-Si) wafers which are
sliced from large ingots grown in laboratories. Single crystals are used to create monocrystalline
solar panels and cells (mono-Si), while multiple crystals are used for polycrystalline panels and
cells (multi-Si or poly c-Si).

We choose to use mono-Si cells for the following reasons:

● Higher Efficiency: Mono-Si cells typically exhibit higher efficiency compared to

multicrystalline silicon (mc-Si) cells. The higher efficiency means that mono-Si panels
can convert more sunlight into electricity per unit area, leading to greater power output
for a given installation size.
● Better Performance in Low-Light Conditions: Mono-Si cells generally perform better
in low-light conditions compared to mc-Si cells. This characteristic is particularly
important in regions with frequent cloud cover or where sunlight exposure varies
throughout the year. In such conditions, mono-Si panels can maintain higher power
output levels, ensuring more consistent energy generation.
● Long-Term Reliability: Monocrystalline silicon is known for its stability and longevity.
Mono-Si cells typically have a longer lifespan and degrade at a slower rate compared to
mc-Si cells. This means that solar panels made from mono-Si cells are likely to provide
reliable performance over many years, with minimal degradation in efficiency.
● Market Demand and Perception: Mono-Si panels are often perceived as higher quality
and more premium products compared to mc-Si panels. Therefore, choosing mono-Si
cells as the raw material aligns with our company's branding strategy or target market
preferences.

The vendor we have chosen to acquire our solar cells from is Scenergy, a part of Changzhou
Shichuang Energy Co.,Ltd. We have chosen this company since importing the Mono-Si cells
in bulk from China is cheaper than using locally sourced cells. Also, the company we chose is a
verified seller6 on Alibaba.com, which is one of the most reliable online platforms to buy
products from China.

With each solar panel having 72 solar cells and each cell costing ₹10.317, and a 10% surplus as
inventory, we would require around 2.474 cr INR per year, without shipping costs. Shipping
overseas costs ₹828.72 per cubic meter on average from Shanghai to Chennai or Mumbai.8
Assuming 25% of the volume is packaging material, shipping costs per year would be around
₹89,200 on average. Total cost for the solar cells is thus around 2.5 cr INR or 0.25 cr INR/W.
Effects of Irradiation
6
https://scenergy.en.alibaba.com/?spm=a2700.galleryofferlist.0.0.52796a8dcU60uh
7

https://www.alibaba.com/product-detail/Scenergy-Scenergy-12BB-High-Efficiency-Monocrystalline_16008
88109285.html?spm=a2700.galleryofferlist.p_offer.d_image.52c06a8d5aRm92&s=p
8
https://www.sino-shipping.com/country-guides-freight-from-china-to-india/
In assessing the solar panel market, the critical factor lies in the amount of irradiation a region
receives, directly influencing the economic feasibility of solar panel purchases. Regions with
higher irradiation levels prove more economical for buyers, as the increased sunlight enables
the utilization of a greater number of solar panels, maximizing energy output. Conversely, areas
with lower irradiation levels may extend the time required for buyers to break even on their solar
panel investment. The term "irradiation" indeed refers to the amount of sunlight a location
receives, making it a defining factor in shaping the solar panel market. The strategic placement
of solar panels is fundamental; careful positioning in areas with unobstructed sunlight is
essential for optimal efficiency. This consideration aligns with the broader strategy outlined in
the previous report, where manufacturing plants and distribution channels are strategically
located in regions with favorable conditions, leveraging both irradiation levels and other
logistical advantages. The success of the solar panel venture is intricately tied to understanding
and capitalizing on the irradiation dynamics, ensuring the efficient utilization of solar energy
resources for sustainable growth and market penetration. Since we’re just producing panels,
instead of generating solar power, irradiation still plays a smaller role as compared to the latter
where it would be the major driving factor for each step in the process.

Machinery Acquisition

For the assembly of a solar panel, considering the fact that each factory would have an output
of around 3.4 MW, the following machines are to be installed9 :
● Solar Cell Tester
● Solar Cell Laser Scriber
● Tabber and Stringer
● EL Defect Tester
● Laminator
● Panel Framing Machine
● Solar Simulator

The details for the various machines used, including their suppliers are shown in the table
below. The suppliers have been chosen on the basis of price, production rate as well as the
availability of information regarding the product.

Name of Machine Cost (INR / Unit) Production Rate(per hour) Supplier

Solar Cell Tester 6,64,150 - OoiTech, China
Laser scribing machine 16,60,377 1500 cells OoiTech, China
Indygreen Technologies,
Tabber Stringer 40,00,000 3600 cells Ahmedabad
EL defect tester 33,20,754 3600 cells OoiTech, China

9
https://www.solarmakingmachine.com/20MW-Full-Automatic-Solar-Panel-Production-Line/
 Indygreen Technologies,
Solar Laminator 43,00,000 1080 cells Ahmedabad
Akshar Enterprise,
Solar panel framing 45,000 - Ahmedabad
Photonik Solutions,
Solar simulator 15,00,000 - Maharashtra

To meet our production rate, we need to be able to assemble 20 lakh cells in a year with all
three factories combined. Approximating equal capacity for each factory, that works out to be
6.7 lakh cells per year per factory. This results in a daily requirement of close to 2200 cells to
be assembled per day per factory (for 310 working days per year). Assuming 8-hour shifts of
working time10, we would thus require one each of every machine per factory.

The machinery cost for each factory is thus approximately INR 1.7Cr. For three such factories,
the total machinery cost is INR 5.1Cr.

Factory Layout

To estimate the floor plan dimensions for a solar panel production plant capable of producing
10,000 panels per year, several factors need consideration:

Production Flow: The layout should facilitate a smooth production flow, from raw material
intake to finished product storage and shipping. This typically involves separate areas for each
stage like raw material storage, manufacturing, quality control, and packaging.

Machinery and Equipment: Consider the size and placement of machinery and equipment.
Solar panel production requires various machines such as panel cutting machines, soldering
equipment, testing stations, and packing machines. Each of these will have specific space
requirements and operational considerations.

Storage and Inventory: Allocate space for raw materials storage, work-in-progress inventory,
and finished goods storage. Efficient storage management is crucial for just-in-time production
and inventory control.

Utilities and Support Facilities: Factor in space for utilities such as power distribution panels,
HVAC systems, water supply, and waste management. Additionally, we provide space for
support facilities like offices, employee break rooms, restrooms, and maintenance areas.

Safety and Regulations: We ensure compliance with safety regulations, including fire safety
measures, emergency exits, and adequate spacing between machinery for safe operation and
maintenance.

10
https://labour.gov.in/sites/default/files/factories_act_1948.pdf
Future Expansion: Plan for future expansion if needed. While starting with a capacity of 10,000
panels per year, there may be a need to scale up production in the future, so leave room for
expansion within the site.

Given these considerations, a rough estimate for the floor plan dimensions could be:

Raw Material Storage: 500-1000 square meters

Manufacturing Area: 2000-3000 square meters
Quality Control and Testing: 500-1000 square meters
Finished Goods Storage: 500-1000 square meters
Utilities and Support Facilities: 1000-1500 square meters
Office and Administration: 500-1000 square meters

Taking the upper limits for area we get a conservative estimate of 8500 square meters or approx
2.2 acres for each factory.
The factory we have rented out in all three locations has a capacity of 150000 square feet or

3.44 acres for each. This is done keeping in mind the scope for further expansion.
Distribution and Transportation Strategies:

● Transportation: Considering the identified target markets and factory locations, we will
develop a transportation table to optimize the distribution process and minimize costs.
The transportation table will include the costs associated with transporting solar panels
from each factory to the respective target markets.

● Warehousing: To ensure timely delivery and efficient inventory management, we will

establish strategically located warehouses in the target markets. These warehouses will
serve as distribution hubs, facilitating the storage and distribution of solar panels to
customers and wholesale markets in the respective regions.

Proposed Warehouse Locations:

● Delhi: To serve the northern region and the Delhi wholesale market
● Mumbai: To serve the western region and the Mumbai wholesale market
● Bengaluru: To serve the southern region and the Bengaluru wholesale market
● Ahmedabad: To serve the north-western region, including Gujarat, and the Ahmedabad
wholesale market.

As these places have major wholesale markets for sales as mentioned in the report above,
these will be appropriate locations for warehouses.

Transportation costs:
We will be using road transportation through trucks as our primary mode of transportation. We
came up with the costs to transport our products from the factory locations to the warehouse
locations. We used the following assumptions to come up with the costs:

● Average fuel efficiency: 3 km/liter for a fully loaded truck.

● Average diesel price: ₹90 per liter (as of April 2024, subject to change).
● Average toll charges: ₹2 per km (approximate, may vary based on routes and vehicle
type).
● Average labor cost: ₹5 per km (including driver, helper, and other operational costs).
● Additional costs: 20% of the total cost to account for miscellaneous expenses, handling
charges, and potential delays or route-specific challenges.

Transportation cost = (Distance × Fuel Cost) + (Distance × Toll Charges) + (Distance × Labor
Cost) + Additional Costs

For example,

Sriperumbudur, Tamil Nadu to Delhi (2,200 km):

Fuel Cost = (2,200 km / 3 km/liter) × ₹90 per liter = ₹66,000
Toll Charges = 2,200 km × ₹2 per km = ₹4,400
Labor Cost = 2,200 km × ₹5 per km = ₹11,000
Subtotal = ₹66,000 + ₹4,400 + ₹11,000 = ₹81,400
Additional Costs = ₹81,400 × 0.2 = ₹16,280
Total Transportation Cost = ₹81,400 + ₹16,280 = ₹97,680

Similarly, we calculated the costs for each of the locations and have formulated the table as
shown:

Factory location Delhi Mumbai Bengaluru Ahmedabad

Sriperumbudur 97680 57720 15540 79920
Nagpur 48840 31080 48840 31080
GIDC Sanand 39960 26640 71040 1332

The demand and supply information is derived as follows:

For supply, we have assumed that each of the three factories produce equal amounts of panels,
thus making them to be around 10,000/year/factory.

For the demand at each location:

Delhi:

Cumulative Solar Installation in Delhi (as of January 2023): 16,353.07 MW

Assuming an average solar panel capacity of 330 W
Number of solar panels installed = (16,353.07 MW × 1,000,000 W/MW) / 330 W = 49,545,636
panels
Demand at Delhi = 49,545,636 × 0.02% = 9,909 panels/year

Mumbai:

Cumulative Solar Installation in Maharashtra (as of January 2023): 8,747.42 MW

Assuming an average solar panel capacity of 330 W
Number of solar panels installed = (8,747.42 MW × 1,000,000 W/MW) / 330 W = 26,503,939
panels
Demand at Mumbai = 26,503,939 × 0.02% = 5,301 panels/year

Bengaluru:

Cumulative Solar Installation in Karnataka (as of January 2023): 8,018.60 MW

Assuming an average solar panel capacity of 330 W
Number of solar panels installed = (8,018.60 MW × 1,000,000 W/MW) / 330 W = 24,293,333
panels
Demand at Bengaluru = 24,293,333 × 0.02% = 4,859 panels/year

Ahmedabad:

Cumulative Solar Installation in Gujarat (as of January 2023): 8,747.42 MW

Assuming an average solar panel capacity of 330 W
Number of solar panels installed = (8,747.42 MW × 1,000,000 W/MW) / 330 W = 26,503,939
panels
Demand at Ahmedabad = 26,503,939 × 0.02% = 5,301 panels/year

Assuming linear demand, we divided the no. of panels by 12 for monthly demand to be used in
calculations for the transportation problem.

These are the costs for one way trip for an average truck; we shall use this as the basis to solve
the transportation problem further.

An average truck of volume 14x6x6.5 ft^3 can transport around 193 of the 330W solar panels
(taking the packing material into account), each panel having the dimensions 1.97x0.99x0.04
m^3.

To optimize the distribution strategy using the VAM (Vogel's Approximation Method) approach,
we aim to minimize transportation costs while efficiently allocating resources. Given the
transportation constraints and costs per panel, we create a cost matrix (in italics) representing
the transportation costs from each source to each destination.
 Factory location Delhi Mumbai Bengaluru Ahmedabad Supply
Sriperumbudur 507 299 81 414 835
Nagpur 253 161 253 161 835
GIDC Sanand 207 138 368 7 835
Demand 825 442 405 442

On solving using TORA, we obtain the following result:

Destination Location
Factory location Delhi Mumbai Bengaluru Ahmedabad Supply
Sriperumbudur 0 39 405 0 835
Nagpur 432 403 0 0 835
GIDC Sanand 393 0 0 442 835
Demand 825 442 405 442

This table gives us an estimate of the number of trips per month from the factories to the
warehouses. Using the number of trips to the various warehouses we get the estimated total
transportation cost to be around 4.95 lakh INR per month. Then, the total annual transportation
cost is 59.4 lakh INR or 5.94 Lakh INR/W.

Financial Analysis

We broke the expenses of our operations into various categories like manufacturing,
warehousing, transportation, labor, etc, and contemplated the cost of production. We then
projected the potential sales from which we would generate our revenue. These are the major
financials that we have generated.
 EXPENSE HEADS COST
Warehouse Expenses
Manufacturing Expenses
Warehouse Rent ₹3,200,000
Raw Material ( Other than cells) ₹52,200,000
Warehouse Equipment & Supplies ₹200,000
Raw Material (Cells) ₹24,740,000
Warehouse Maintenence ₹240,000
Shipping of Raw Materials ₹300,000
Warehouse Overheads ₹200,000
Transportation to Warehouse ₹6,000,000
Factory Equipment & Supplies ₹30,000,000 SALARIES

Solar Cell Tester ₹1,992,450 Contract Labour ₹10,080,000

Laser scribing machine ₹9,962,262 Office Support Staff ₹384,000
Tabber Stringer ₹12,000,000 A -level employees ₹6,000,000
EL defect tester ₹9,962,262 B -level employees ₹5,400,000
Solar Laminator ₹12,900,000
OFFICE EXPENSES
Solar panel framing ₹135,000
Office Furniture and Overheads ₹9,000,000
Solar simulator ₹4,500,000
Office Rent ₹600,000
Factory Rent ₹108,000,000
Marketing ₹1,000,000
Factory Maintenence ₹12,000,000
Factory Overheads ₹10,000,000

REVENUE
Residential customers
Commercial customers
Government entities
Solar installers ₹362,500,000
 Cost of Production ₹330,995,974
Profit ₹31,504,026
Profit Margin 8.69%
Cost Price of Each Panel ₹10,923
Selling Price of Each Panel ₹12,500
Cost Price/W ₹33
Selling Price/W ₹38

The above sales plan is considering that we sell 29000 out of the 30300 panels that we
produce. We get a profit margin of 8.7% in the very first year. The industry average ranges from
5 - 15%. So, this is a great start, financially speaking.

The Business Plan

1. Customer Segments:

● Residential customers: Homeowners looking to adopt solar energy for their homes.
● Commercial customers: Small businesses, schools, hospitals, and other organizations
interested in reducing their energy costs through solar power.
● Government entities: Municipalities, local governments, and government agencies
seeking renewable energy solutions for public buildings and infrastructure.
● Solar installers: Companies or individuals who purchase solar panels in bulk for
installation projects.

2. Value Proposition:

● High-quality solar panels: Solaris offers durable, efficient solar panels manufactured
using advanced technology.
● Cost-effective solutions: Solaris provides affordable solar panels to make solar energy
accessible to a wide range of customers.
● Reliable energy production: Solaris panels are designed to deliver consistent
performance and long-term energy savings.
● Sustainable energy: Solaris helps customers reduce their carbon footprint and contribute
to environmental sustainability through solar power.

3. Sales Channels:
 ● Direct sales: Solaris sells solar panels directly to customers through its website, sales
team, and, in the long run, a showroom.
● Distributors: Solaris partners with local distributors to reach customers in specific regions
or markets.
● Online platforms: Solaris utilizes e-commerce platforms and online marketplaces to
expand its reach and accessibility, this can also be done by collaborating with the local
distributors.
● Partnerships: Collaborates with solar installers and contractors for bulk purchases and
installation services.

4. Customer Relationships:

● Personalized support: Solaris offers personalized assistance to customers throughout

the purchasing process, including product selection, installation guidance, and
after-sales support.
● Educational resources: Provides information and resources to educate customers about
solar energy benefits, installation, and maintenance.
● Feedback and engagement: Actively seeks feedback from customers to improve
products and services and maintains regular communication through newsletters, social
media, and other channels.

5. Revenue Streams:

● Solar panel sales: Revenue generated from the sale of solar panels to residential,
commercial, and government customers.
● Installation services: Additional revenue from providing installation services directly or
through partnerships with installers.
● Maintenance contracts: Recurring revenue from offering maintenance contracts for
ongoing support and upkeep of solar panel systems.

6. Key Resources:

● Manufacturing facilities: Solaris invests in manufacturing facilities equipped with the

latest technology for solar panel production.
● Skilled workforce: Employs engineers, technicians, and other professionals with
expertise in solar panel manufacturing and technology.
● Raw materials: Secures a stable supply chain of high-quality raw materials required for
solar panel production.
● Brand reputation: Builds a strong brand reputation based on product quality, reliability,
and customer satisfaction.

7. Key Activities:
 ● Manufacturing: Produces solar panels efficiently while maintaining high quality
standards.
● Sales and marketing: Promotes Solaris products through various channels to reach
target customers and increase brand awareness.
● Customer support: Provides pre-sales and post-sales support to ensure customer
satisfaction and repeat business.
● Research and development: Invests in R&D to improve solar panel efficiency, durability,
and cost-effectiveness.

8. Key Partnerships:

● Suppliers: Partners with suppliers of raw materials, components, and equipment for solar
panel manufacturing.
● Distributors: Collaborates with distributors to expand market reach and distribution
channels.
● Installers: Forms partnerships with solar installers to offer bundled products and services
to customers. These partnerships can also be extended to maintenance services for
installed panels.
● Financing institutions: Partners with banks or financial institutions to provide financing
options for customers interested in purchasing solar panels.

9. Cost Structure:

● Manufacturing costs: Expenses associated with raw materials, equipment maintenance,

labor, and overhead costs for solar panel production.
● Marketing and sales expenses: Costs related to advertising, promotions, sales
commissions, and marketing campaigns.
● Research and development: Investment in R&D activities to innovate and improve solar
panel technology.
● Operational costs: General administrative expenses, rent, utilities, insurance, and other
overhead costs.
● Distribution costs: Expenses for distribution, logistics, and warehousing of solar panels
and related products.

By adopting this business model, Solaris can effectively position itself in the market, differentiate
its offerings, and capitalize on the growing demand for solar energy solutions. Additionally,
continuous innovation, strategic partnerships, and a customer-centric approach will be crucial
for its success and growth in the renewable energy sector.

10. Market positioning

● Solar power production guarantees: Solar power prospects are becoming savvier every
day. They do their research, get multiple estimates, and make sure they compare
apples-to-apples with all those estimates. In a market like this, separating your offer from
 the others can be difficult. One strategy companies are turning to — and customers are
increasingly asking about — is production guarantees.
● Gain a competitive edge with exceptional customer service: Focusing too much on the
sale and failing to prioritize quality at all stages of the customer’s experience after they
sign on the dotted line is a costly mistake. Delivering excellence beyond the sale will
lead to satisfied customers who can’t wait to tell their friends and neighbors about going
solar with your company.
● Why solar panel recycling matters: The end-of-life management of panels is the only
negative environmental impact of photovoltaics. Tackling this issue is very important from
a marketing and public relations standpoint. By integrating recycling practices into the
business operations, we also ensure a huge marketing advantage over the competitors.

Market Analysis

At the end of 2024 the solar market would be at USD 50 billion and with a capacity of 79.07GW
and would reach USD 230 billion, 195.11GW after five years.