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FOCUS ON O&M
Optimizing Solar Panel
Manufacturing Efficiency
and Reliability
Whether you're a longtime solar panel
maker or just embarking on a business
plan, it's easy to overlook some key business
considerations. Perhaps you need
to design a new warehouse and develop
support systems infrastructure but don't
know where to start. Or you are unaware
of technologies that will enhance your
operations. Or, even more frustrating,
you discover afterward you missed out
on some key tax provisions.
Given the rapid rise in the solar market,
solar panel manufacturers would
do well to stay apprised of the latest
trends. According to the Solar Energy
Industries Association, the U.S. solar
market has experienced an average annual
growth rate of 24% during the past
10 years. To realize continued growth,
solar panel makers need to consider a
host of issues to remain vital in a competitive
marketplace. They should pay
attention to best practices for running a
plant smoothly, consider a range of new
technologies available, and take advantage
of tax provisions that will lead to
enhanced business operations.
Creating Efficiencies
To thrive as solar panel makers, operators
should follow planning steps
focusing on proper preparation, specifications,
qualifications and certifications,
production,
and
sustaining
processes.
In many cases, solar panel
makers have yet to consider these areas,
which can lead to operating losses
and a lack of customers.
At the outset of manufacturing, solar
operators need to consider process
design and equipment design, as well
as specifications and characterization.
This includes selection and sourcing of
the proper materials. Operators must
be trained and certified. Additionally, operators
must be mindful of the software
they plan to use, whether using enterprise
resource planning (ERP), manufacturing
execution system (MES), or some
other support system.
In rounding out the to-do list, Noel R.
Cena, vice president of Operations at
PANASOL USA, recommends following
the Advance Product Quality Planning,
or APQP methodology, which covers
23 activities to be monitored. These are
divided into five milestones: planning,
product approval, prototyping, pilot run,
and production launch.
12
minimizing recombination losses.
2. A worker inspects the framing of a solar
panel, part of the process as the panel enters
its final stage of production. Courtesy: PANASOL
USA
Solar panel makers should also consider
implementing a sustainable quality
control program (Figure 2) such as a
Six Sigma set of methodologies, a root
cause analysis, or an eight-discipline
(8D) model for problem-solving. By following
an overall assessment, operators
can create a solid foundation for
the company.
Explore Top Technologies
Most manufacturers supply what the
market
demands
regarding technologies
around solar panel manufacturing.
The most common technologies include
Monocrystalline Passivated Emitter and
Rear Contact, or Mono-PERC; bifacial
(glass-glass or glass-back sheet); and halfcut
solar panels. These technologies are
not exclusive to each other, though; the differentiation
of each type of module manufactured
is based on your clients' needs.
For instance, if you're servicing the
roof-top sector, whether residential or
commercial and industrial, the size of
the panels does matter. In the case of
residential customers, the aesthetics are
also important, and hence, the selection
of materials, whether the modules are
silver-framed or black-framed.
Solar panel makers should also consider
introducing new technologies to
boost their operations in terms of differentiation
and seeking to enhance
efficiencies. Some of the forthcoming
technologies include:
■ Heterojunction (HJT) Cells. HJT cells
offer improved efficiency by combining
different semiconductor materials.
According to MIT Technology Review,
they can reduce energy losses at the
cell surface, which results in better
performance.
■ TOPCon (Tunnel Oxide Passivated
Contact). TOPCon cells use a thin tunnel
oxide layer to enhance electron
transport. Industry leader SunRun
says they achieve high efficiency by
www.powermag.com
■ Perovskite Tandem Solar Cells. These
cells combine traditional silicon with
perovskite materials with a unique
crystal structure. Perovskite tandem
cells can utilize a broader spectrum of
sunlight, resulting in higher efficiency.
While silicon-based cells top out at
about 23% efficiency, perovskite tandem
cells have already exceeded 33%
efficiency in the lab.
Exploring top technologies is a big-ticket
item in this industry. It can come with a
hefty (but potentially worthwhile) price for
those who mean business. An aggressive
and proactive research and development
effort must form part of the strategy, not
just for the long term, but also for competitive
survival. New product introductions
focused on new methods, materials,
and cost reductions are vital for making
inroads to leadership in this industry.
Don't Forget Tax Provisions
When President Biden signed the Inflation
Reduction Act (IRA) into law nearly
two years ago, it spurred a host of significant
tax provisions for solar panel
manufacturers in the U.S. The IRA has a
provision called Section 45X, a tax credit
for businesses that manufacture and sell
energy components. To qualify for the
45X production tax credit, U.S. makers
need to sell their production to non-related
clients based in the U.S.
Solar makers can cash or trade their tax
credits set at 7¢ per watt. That means a
1-GW factory can generate a non-taxable
$70 million per year on the tax credits
alone. This is a hefty return on investment,
allowing manufacturers to lower
their tariffs to attract more consumers.
The tax credits will impact the production
of solar panels in the U.S. Solar
operators are seeing a sizeable flow of
investment in the industry, which will
increase competition and help to reduce
prices, leveling the field. The past year
has seen an increase in announcements
of new factories nationwide, increasing
the supply to an estimated 62 GW by
2025, according to industry data.
There is no doubt that creating and
maintaining an effective solar panel operation
can be challenging. But in the end,
solar panel makers who create and follow
an efficient business model, invest in top
technology, and take advantage of tax
provisions will thrive for years to come. ■
-Ricardo Jimenez is the founder and
chairman of PANASOL USA LLC.
POWER | July 2024
http://www.powermag.com
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