Introduction

• Valerie Horein

• Zach Kromkowski

• Jake Robinson

• Kaitlyn Tappenden

• Liu Wang

• We are here to report our research on the solar panel industry.

Summary Of Peer-Reviewed Research On Solar Energy and

Power Generation

Solar Winery

• The winegrowing industry requires a significant amount of energy in order to power their facilities

• A movement towards using solar renewables, such as photovolatics (PVs), in the winegrowing process has begun

• There are an estimated 184,300 facilities in the world, with only 293 reported to have active solar installation (Smyth)

Tolosa Winery installed about 2,500 solar panels that are capable of delivering 539 kW of power, enough to supply 95% of their facility.

Leasing PV Systems

• The demand for leased residential solar panel systems is growing significantly, as it financially attractive to homeowners

• With the solar lease, the homeowner does not own the system, but pays to use it for a determined period of time

• The “zero-down fee structure option” is a major draw, as customers get to start saving money on their utility bills right away (Rutberg)

Organic Solar Cells

• While solar cells are environmentally friendly, they tend to be on the expensive side, a cost that a company would love to decrease

• Solar cells built from organic material would be cheaper, less hazardous and not as heavy as traditional solar cells (Thilmany)

• Scientists at Harvard University are currently using a supercomputer to create the updated organic cells

Market Size

• Revenue 1.0bn• 39 Solar Panel Businesses

• Size is Falling

– 6.2% drop between 08-13

– Predicted to drop 15.6%

more 13-18

Market Share

• Top two

– SolarWorld AG 10.6%

– First Solar Inc. 9.7%

Demand

• Industrial building construction

• Commercial building construction

• Khols immersed in solar panel industry

• Increase use of 25%, 20 total locations in 2010, 30 total locations in 2012

• Housing developers

• Solar power

Trends in the Marketplace

Revenue ($m) IVA ($m) Domestic Demand ($m)Solar Electricity Generation (Million kilowatt

hours)

20102,873.10 1,267.60 3,811.80 3,804

20112,340.90 695.7 5,590.60 7,260

20121,793.30 616.9 5,504.50 12,632

20131,038.90 409.3 3,947.50 19,084

2014896.6 334.4 3,848.60 24,080

2015888.60 320.00 4,296.50 28,990.00

2016806.2 306.7 4,310.40 32,569

2017598.8 217.7 4,298.30 33,476

2018446.2 161.7 4,245.00 33,690

Key Statistics

Trends in the Marketplace

• The solar market is currently facing rapidly falling prices, both for its raw material and its finished product.

• The U.S government keeps increasing the financial benefits for companies to make use of renewable energy sources.

• The consolidation and specialization of the industry will increase.

Major Companies in the Solar Panel Industry

SolarWorld AG.

• 10.6% of the market share

• One of the largest manufacturers

SolarWorld AG History

• Founded in 1998

• Currently has around 2,500 employees

• $109.9 million in revenue in 2013

• Revenues have begun to decrease because of overseas manufacturers selling solar panels inexpensively

SolarWorld AG Products

• Sunmodule solar panels

• Made in the USA

• Textured glass and salt mist resistance

SolarWorld AG Products (cont.)

• Design Service

• Ability to design for commercial and residential customers

First Solar Inc.

• 9.7% of the market

• Over 6,500 employees

• 3 locations

– Germany

– Malaysia

– United States

First Solar Inc. (Financial)

• $108.9 million in 2012

• 100.9 million in 2013

First Solar Inc.

• Competitive advantage with their innovative thin-film modules on their solar panels

• First Solar Inc. also sells the mounting equipment

Other Companies in the Market

• Sunvia: 4.5%

• SunPower: 2.0%

Our Approach

• Invest in a smaller company

• Learn from the larger companies

– Research innovative technology like First Solar Inc.

– Find ways to compete with the overseas market

• Turn small company into a large competitor

Final Recommendation

• Invest in one of the smaller companies

• The future looks bright with new technological advances

• Government subsidies stimulate the industry

• Significant barriers to entry

Works Cited

• Domanic, M. (n.d.). Major companies. Unpublished raw data, Purdue University, West Lafayette, IN, , Available from IBISworld. Retrieved from http://sites.lib.purdue.edu/guides/tutorial/getting-started-with-ibisworld

• First Solar. (2014). Structured energy products. Retrieved from http://www.firstsolar.com/en/products/structured-energy-products

• IBISWorld. (2014). Solar Panel Manufacturing in the US. Retrieved from http://clients1.ibisworld.com.ezproxy.lib.purdue.edu/reports/us/industry/default.aspx?entid=754

• Khol's uses solar initiative in 30 new locations. (2012, 06 21). Retrieved 2.23. 2014, Retrieved from http://sites.lib.purdue.edu/guides/tutorial/mintel

• Renzema, A. (2013) Trends in Solar Energy and the Solar Energy Industry. Retrieved from https://www.greenlancer.com/trends-in-solar-energy/

Works Cited (cont.)

• Rutberg, M., & Bouza, A. (2013). Leasing residential PV systems. ASHRAE Journal, 55(12), 132-132,134,136. Retrieved from http://search.proquest.com/docview/1491274266?accountid=13360

• Smyth, Mervyn. "Solar Photovoltaic Installations In American And European Winemaking Facilities." Journal Of Cleaner Production 31.(2012): 22-29. Business Source Premier. Web. 22 Feb. 2014.

• SolarWorld, A. (2013). Products and services. Retrieved from http://www.solarworld-usa.com/products-and-services/sunmodule-solar-panels

• Thilmany, J. (2012). Organic solar cells. Mechanical Engineering, 134(7), 20-21. Retrieved from http://search.proquest.com/docview/ 1023246875?accountid=13360