Essay on Solar Module case

931 WordsApr 29, 20144 Pages
Nanosolar Inc. Case Study Analysis Nanosolar is a start-up company and expects to be one of the first manufacturers to produce thin-film solar panels using copper indium gallium (di)selenide (CIGS) technology. Nanosolar is focused on selling a single type of thin-film Photovoltaic (PV) module called the “Nanosolar Utility Panel”. The utility panel is 50% less energy efficient than c-Si modules, but being 90% less expensive to produce. Strategic Options: (1) Continue to invest in European and Asian markets. (2) Enter US Utilities and Commercial Market Immediately. (3) Launch an industrial scale pilot project in the US. And based on the results, decide whether to and when to enter the US Market (recommended). Opportunities The…show more content…
Nanosolar’s value proposition is its lower cost per watt to purchase and install (see Case page 5). Because thin-film PVs require 43% more roof space per watt generated, it is more valuable to larger commercial and utility customers than residential customers. Nanosolar’s focus should remain on industrial scale projects that benefit most from its lower installation costs. In order to approach residential market, significant investment is required to establish installer relationships (eg. In the US). Nanosolar should also focus on production efficiency (see delay of the 2007 Beck’s project (Case page 6.) and hire, train sales staff (has only 1 person in the US and 1 person in Switzerland). Worldwide Solar Market and Incentives By having its final assembly in Germany, Nanosolar is geographically positioned to meet the needs of developing countries such as India and China while distributing its panels throughout Europe. Shipping completed modules to the US would require additional cost and put it at a disadvantage compared to First Solar which has a manufacturing plant in Ohio (Exhibit 9). Incentives (governmental regulations require utilities to purchase renewable electricity at higher rates), can only help the business to become established in the market, so are important in the short and mid-term only. Because European incentives diminish over time, in the long term all PV technologies will compete based on price and performance therefore cost

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