European Journal of Scientific Research

ISSN 1450-216X Vol.24 No.2 (2008), pp.263-269

© EuroJournals Publishing, Inc. 2008
http://www.eurojournals.com/ejsr.htm

Can a High-Tech Silicon Photovoltaic (PV) be a

Cottage Industry?

Kamaruzzaman Sopian
Solar Energy Research Institute, Universiti kebangsaan Malaysia
(National University of Malaysia), 43600 angi, Selangor Malaysia

Abdul Latif Ibrahim

Solartif Sdn. Bhd., Terengganu, Malaysia

Nilofar Asim
Solar Energy Research Institute, Universiti kebangsaan Malaysia
(National University of Malaysia) 43600 angi, Selangor Malaysia
E-mail: n_asim2001@yahoo.com
Tel: +60-3-89214592; Fax: +60-3-89214593

Nowshad Amin
Solar Energy Research Institute, Universiti kebangsaan Malaysia
(National University of Malaysia), 43600 angi, Selangor Malaysia

Saleem H. Zaidi
Gratings, Incorporated, Albuquerque, NM 87107

Abstract

In this study we investigate an alternate approach aimed at solar photovoltaic (PV)

cost reduction by tailoring the technology to the socio-economic culture of the society.
Such an approach must stress development of photovoltaic-based cottage industry. As the
first step in this direction, we developed cottage-industry based business model aimed at
manufacturing of 110 W PV modules in a pilot plan in Terengganu, Malaysia with an
estimated capacity of ~ 1 MW/year. Almost entire equipment and manufacturing processes
were developed with process and performance yields comparable to any automated
operation. Further work is in progress.

Keywords: Silicon Photovoltaic, Cottage Industry, Malaysia

1. Introduction
Solar photovoltaic (PV) industry has maintained sustained growth rates over last 15 years [1], and the
future outlook appears to be even brighter considering continuously increasing oil prices and ensuing
environmental concerns [2]. Most of this growth has been confined to economically advanced
countries (Germany, Japan, and US), and has been tied to grid-connected applications [3]. The growth
of PV industry can, in large part, be attributed to subsidies and tax incentives provided by governments
[3]. In order to meet rising demands, the PV manufacturing sector has increasingly adopted automation
Can a High-Tech Silicon Photovoltaic (PV) be a Cottage Industry? 264

to increase throughputs [4]. This has come at the expense of very high capital equipment costs. The
cost of solar PV is still more than an order of magnitude higher than that produced by conventional
fossil-fuel based sources.
At the other end of the spectrum, the need for PV energy in poor, and developing countries is
real, and urgent. However, the technology is not cost-effective unless some creative mechanisms to
offset costs can be developed. The lack of grid-network in most of these countries can actually be
considered as a plus [5], since it can potentially lead to electricity generation at the point of need, and
thus stimulate the accelerated development of micro grid models [6]. Several economic analyses have
shown that de-centralized energy distribution using small power generators is both environmentally
and economically feasible [7]. In order for this to happen, the solar PV generation must be drastically
reduced. We investigate an alternate approach aimed at solar PV cost reduction by tailoring the
technology to the socio-economic culture of the society. Such an approach must include some of the
elements listed below:
• Creation of a PV-based cottage/community industry,
• Manufacturing processes tailored to the specific environment, and
• Creation of educational and technical infrastructure to support PV technology.
In the work presented here, almost entire equipment and manufacturing processes were based
on low-cost, simple, manual operation.
The Solar PV industry encompasses a wide range of technologies; only some of which are
suited for cottage industry environment. Fig. 1 shows a simplified drawing of the principal PV
technology sectors from starting point of Si purification to the end product in system integration. The
creation of solar-quality Si feedstock from raw quartz represents the most complex, and expensive
technology sector. Most multi-national solar companies are vertically integrated from crystal growth to
module fabrication. The processing and equipment costs become increasingly simpler and less
expensive as we move from left-to-right in the PV technology sectors described in Fig. 1. In this paper,
we examine the feasibility of the module manufacturing process conversion into a simplified, cost-
effective cottage-industry model.

Figure 1: Principal solar PV technology sectors from raw material to system integration.

2. Experimental Work
Fig. 2 describes a simplified diagram of the solar module manufacturing process. Equipment
manufacturing companies have developed completely automated systems to do almost all of the
processes outlined in Fig. 2. Such systems, although highly effective, are expensive. We focused on a
low-cost, manually-oriented approach to perform almost all of the processes described in Fig. 2.
Figures 3-7 show pictures of various simple layout stations for tabbing, stringing, pre-lamination
assembly, testing, framing, and final characterization. All the equipment was designed and fabricated at
our own facility except for the NPC vacuum laminator that had to be purchases, and proved to be the
most expensive equipment of the manufacturing process. The solar cell and modules were purchased
from vendors.
265 Kamaruzzaman Sopian, Abdul Latif Ibrahim, Nilofar Asim, Nowshad Amin and
Saleem H. Zaidi

Figure 2: A simplified diagram of solar module manufacturing process.

Figure 3: Simple, manually-based tabbing (left) and stringing (right) processes.

Figure 4: Module assembly (left) and pre-lamination testing (right).

Can a High-Tech Silicon Photovoltaic (PV) be a Cottage Industry? 266
Figure 5: Module framing after lamination.

Figure 6: Module testing after framing.

3. Results and Discussions

In order to evaluate this concept, a total of 20 modules were manufactured. The module performance
was calibrated against independently measured, commercially available 110 W Photo Watt and BP
Solar modules. The output from our custom-designed and manufactured module tester was at ~ 60 %
of the peak sunlight illumination. Fig. 7 plots the power output of the twenty modules using both the
sunlight and lamp light. Both the He lamp and sunlight outputs were normalized to unity ease of
comparison. As depicted in Fig. 7 measurements show that there is very close match between module
performance under the sun and lamps. The lower output from module number 13 may be attributed to
bad cells.
267 Kamaruzzaman Sopian, Abdul Latif Ibrahim, Nilofar Asim, Nowshad Amin and
Saleem H. Zaidi

Figure 7: Module output comparison under sunlight and lamps.

3.1. Module Manufacturing Analysis

We carried out a simple analysis aimed at determining economic potential of the proposed approach.
As much as is possible, we have made realistic estimates of the incurred costs during panel
manufacturing and marketing. Some of the assumptions made are listed below.
(I) Solar cell cost was assumed to be independent of manufacturing output,
(II) Solar Module materials cost was also assumed to be independent of manufacturing output,
(III) Minimal education for most of the employees would be needed, and
(IV) All the materials, labor, and manufacturing costs were realistic based on our experience of
running a large module manufacturing facility.

Figure 8: Profit/loss analysis for module manufacturing operation in developing and advanced countries.

Based on these assumptions, we have plotted in Fig. 8 a profit/loss comparison in developing

and advanced countries as a function of production level. This analysis shows that:
• Breakeven point is reached for ~ 0.75 MW/year production for a manually-operated facility,
and
• Breakeven point in an advanced country is at ~ 2 MW/year capacity assuming a fully-
automated manufacturing facility.
Can a High-Tech Silicon Photovoltaic (PV) be a Cottage Industry? 268

Considering that the startup equipment costs for a manually-operated system are estimated to
be ~ 10-15 times lower than a fully automated manufacturing facility, we expect manual/cottage
industry approach to be economically beneficial.

3.2. PV Status in Malaysia

A solar photovoltaic installation in Malaysia would produce energy of about 900 – 1400 kWh/kWp per
year depending on the locations. The potential of Building Integrated Photovoltaics (BIPV) in the
residential, commercial and industrial sector is huge: areas of ~ 2.5 x 106 x 10 m2 , ~ 4.0 x104 x 1000
m2 , and ~ 2.1 x 104 x 2000 m2 for residential , commercial and Industry sectors respectively translate
to ~ 11,000 MWp or 11 GWp. Today this would cover 20% of the national energy demand, and
assuming current prices of ~ RM 25,000/KWp (or RM 25 million/MW) the total BIPV potential of
11GWp presents a total business potential of RM 265 billion.
Several strategies to promote PV are being pursued including: (a) Establishment of photovoltaic
Information Services, Awareness and Capacity Building Programs, (b) Development of photovoltaic
Market Enhancement and Infrastructure Development, (c) Improvement of Policy and Financial
Frameworks Supportive for Market Sustainability, and (d) Establishment of competitive local
manufacturing industries and R&D are being implemented in an integrated manner. The successful
outcome of these strategic initiatives is instrumental in the future growth of BIPV programs as well
micro-grids for non-grid-connected regions.
We have just completed the first phase of operations during which a low-cost module
manufacturing capability was conceived, designed, and demonstrated. The next phase will see transfer
of manufacturing operations to a factory located in the state of Terengganu. Terengganu is one of the
three east coast states in the Peninsular Malaysia covering an area of 12,995 sq km. Currently; the
Terengganu State Government is diversifying the economy's base away from basic industries towards
more value-added, resource like manufacturing. Results on 1 MW pilot plan installation, operation, and
technology transfer to Terengganu will be reported in future.

4. Conclusion
In this study, based on some assumption, profit/loss analysis for module manufacturing operation in
developing and advanced countries showed that breakeven point is reached for ~ 0.75 MW/year
productions for a manually-operated facility, while in an advanced country it is reached at ~ 2
MW/year capacities assuming a fully-automated manufacturing facility. These results revealed
considering that the startup equipment costs for a manually-operated system is estimated to be ~ 10-15
times lower than a fully automated manufacturing facility, we expect manual/cottage industry approach
to be economically beneficial. Further work is in progress.
269 Kamaruzzaman Sopian, Abdul Latif Ibrahim, Nilofar Asim, Nowshad Amin and
Saleem H. Zaidi

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