Periodic Reporting for period 1 - SoHo3X (Introducing a novel concept of solar photovoltaic module in the market)
Période du rapport: 2015-07-01 au 2015-10-31
Résumé du contexte et des objectifs généraux du projet
In March 2015, IHT successfully presented the novel concept’s idea of SoHo3X to the Phase 1 of SME Instrument call to drive its launch to the market. The acting lines of the current feasibility plan were based on the excellence of SoHo3X, still prototype at that time, against its competitor’s (conventional flat silicon PV solar module):
• With respect to conventional PV, the new product has the potential to reduce manufacturing costs by 38% through cheaper material (made completely in plastics except for the silicon cell) and reduction of solar cell area (one of the main cost drivers of solar modules).
• It also increases performance ratio of a PV plant up to 91% due to the higher light trapping in the morning and the evening.
Making of SoHo3X, already at that time, a serious opponent to substitute traditional PV and rapidly reaching an important market share.
On the basis of these reasons, since March IHT has been deeply involved in many different activities to materialize the good results obtained from our prototypes built and lab-tested under industry relevant conditions (sun simulator) by the University of Cadiz (UCA) last February.
To study how to best implement all of the above, the main objective of the present project was to carry out a feasibility study of the introduction in the market of product SoHo3X.
On the technical side, the final feasibility study focuses on the following main objectives:
- Determine the PV market’s technical trends and how SoHo3X fulfils them.
- Having found an alternative for IEC certificate.
- Confirm good results of SoHo3X by other institutions of international relevance.
- Expand list of suppliers for key raw materials.
- Define the ideal dimensions of SoHo3X’s final commercial version.
- Analyse technical risks of the product and define strategies to overcome them.
- Define appropriate Intellectual Property (IP) strategy.
- Identify potential industrial partners and define strategy to co-operate with them.
On the economic side, the main objectives of the feasibility study were:
- Define which market segments within the PV market are more appropriate for initial deployment.
- Analyse potential customers within those segments and define a list of “best targets”.
- Identify potential business partners (investors) and business strategy to follow with them.
- Gather more information to decide whether to manufacture modules or sub-license patent.
- Analyse risks of the market and define strategies to overcome them.
• With respect to conventional PV, the new product has the potential to reduce manufacturing costs by 38% through cheaper material (made completely in plastics except for the silicon cell) and reduction of solar cell area (one of the main cost drivers of solar modules).
• It also increases performance ratio of a PV plant up to 91% due to the higher light trapping in the morning and the evening.
Making of SoHo3X, already at that time, a serious opponent to substitute traditional PV and rapidly reaching an important market share.
On the basis of these reasons, since March IHT has been deeply involved in many different activities to materialize the good results obtained from our prototypes built and lab-tested under industry relevant conditions (sun simulator) by the University of Cadiz (UCA) last February.
To study how to best implement all of the above, the main objective of the present project was to carry out a feasibility study of the introduction in the market of product SoHo3X.
On the technical side, the final feasibility study focuses on the following main objectives:
- Determine the PV market’s technical trends and how SoHo3X fulfils them.
- Having found an alternative for IEC certificate.
- Confirm good results of SoHo3X by other institutions of international relevance.
- Expand list of suppliers for key raw materials.
- Define the ideal dimensions of SoHo3X’s final commercial version.
- Analyse technical risks of the product and define strategies to overcome them.
- Define appropriate Intellectual Property (IP) strategy.
- Identify potential industrial partners and define strategy to co-operate with them.
On the economic side, the main objectives of the feasibility study were:
- Define which market segments within the PV market are more appropriate for initial deployment.
- Analyse potential customers within those segments and define a list of “best targets”.
- Identify potential business partners (investors) and business strategy to follow with them.
- Gather more information to decide whether to manufacture modules or sub-license patent.
- Analyse risks of the market and define strategies to overcome them.
Travail effectué depuis le début du projet jusqu’à la fin de la période considérée dans le rapport et principaux résultats atteints jusqu’à présent
If we look back to the objectives planned in Phase 1, we would be able to summarize the experience and where we are with respect to each of them right after our feasibility plan realization:
- Objective: Start-up of a semi-manual module assembly process during 2015. 100 kWp are expected during this period. IHT has already searched for an industrial ally, the multinational industrial company Rubanox.
We, ourselves, have successfully implemented a semi industrial production line to manufacture SoHo3X production line in Sondika (North of Spain), as a better alternative, in order to define the most efficient production line for our new concept along with Mondragon Assembly and be able to transfer to other players, including our alliance with Rubanox. As we experienced during the EU PVSEC Congress, SoHo3X raised interest among several prestigious solar panel manufactures in the market (REC, Panasonic).
The first manufacturing objective in this line would be the 100kWp for the reference plants, planned before the end of the year. The delay in finishing the 100kWp before, according to the Phase 1 SME document, is due to the PMMA extrusion since we did not take into account the water-tightness problems that we have faced during last months. Nowadays, those extrusion problems have been resolved and we are continuing with our plans for delivering to the customers and CENER the rest of the devices.
- Objective: Certification of SoHo3X by IEC standards, in order to obtain bankability.
Certification is in progress. First, we have to end the 100kWp, to provide random samples for the test. In spite of the above, we consider that the objective is fulfilled with the good results obtained from the international lab results and the field results.
- Objective: Optimize production process together with Rubanox to have a 40 MWp production line during 2016.
Optimization of the production process is currently the main aim for IHT. We are investing own resources along with Mondragon Assembly and IHT Desarrollo, S.A. (our industrial lab in Sondika). A semi-manual process is already up and running, which has already given us enough information to optimize a production process.
- Objective: Increase in capacity and production up to 60 MWp in 2017, increasing employment to 80 people.
We have already increased our team in the past 4 months in 6 people and plan in growing 80 new employments for the next 2 years.
On the technical side, the feasibility study has focused on the following main objectives:
- Objective: Determine the PV market’s technical trends and how SoHo3X fulfils them.
BIPV has been contrasted as a new trend, and also isolated, off-grid systems and residential systems are increasingly wanted. This confirms that our business plan is on the right track.
- Objective: Confirm good results of SoHo3X by other institutions of international relevance.
We have successful results on our SoHo3X from the following renowned solar entities: CENER in Spain, the Spanish Institute for Solar Energy (IES) at the Polytechnic University in Madrid, French National Institute for Solar Energy (INES), TÜV Rheinland in Germany and the Autonomous University of Madrid (UAM) in laboratory reports. Apart from that we have received a report from our outdoor test in Abengoa and it confirms the lab results as well.
- Objective: Expand list of suppliers for key raw materials.
We have established strategical alliances with strong companies in their fields, as per the example of Evonik, Plasticos Alai, Kodak, Zink, Innoviscoat, Juncà, TOPSKY Electronics Technology, as main suppliers for the SoHo3X production. Due the expected growth, we have expanded list of supplier for each key account.
- Objective: Define the ideal dimensions of SoHo3X’s final commercial version.
As exposed above, we have defined ideal dimensions of SoHo3X and final commercial version based on the market study. Willing to reach all the different segments with just one product and the modularity offered by SoHo3X. Therefore, the final optimal dimensions are lengths of 1 and 2 meters.
- Objective: Analyse technical risks of the product and define strategies to overcome them.
A constant technical exchange with manufacturers and end-users, along with years of research in the world’s solar market have had a good harvest: SoHo3X incorporates numerous technological novelties responding to the main technical risks and making it a unique and versatile product, adaptable to any type of installation.
• Structure system: the base of SoHo3X (both aluminium and plastic) integrates a self-structured design. This concept incorporates rails that only need simple screws to be fixed to rooftops or vertical walls. The additional weight and cost of a mounting system are thus avoided, and the BoS proportionally reduced. In addition, infinite building integration (BIPV) possibilities are suddenly opened (https://vimeo.com/138843687(s’ouvre dans une nouvelle fenêtre)).
• Soiling: at the design stage, the technical team of IHT also took into account the higher soiling expected from a V-shaped structure. To that end, SoHo3X integrates novelties both in the device fixing and in the materials in which it is built. Furthermore, standard automatic cleaners can clean the devices only by using specific heads.
• Weathering: SoHo3X is built in materials with very high perspectives for technological evolution, cost reduction by scale economies and easy recyclability at the end of their lifetime. On top of that, SoHo3X is IEC compatible, which warrants the device a good performance in all latitudes.
• Device interconnection: the modularity of SoHo3X allows covering a gap detected in the current world market: nowadays, no single product addresses all applications in solar energy. SoHo3X are light, low power, modulable devices, easy to install and interconnect. This also empowers the end-users to reach their desired voltage and current, not those imposed by the manufacturer. The product also offers the possibility of pre-assembled devices at higher, currently standard powers.
• Assembly parts: building integration (BIPV) is one of the key challenges of solar energy. Due to its higher energy harvesting by light trapping, SoHo3X can be installed either vertically or horizontally without the big production losses associated to a conventional module in such orientations. This allows adapting our devices to the most diverse architectural applications by means of specifically designed assembly parts.
- Ojective: Define appropriate Intellectual Property (IP) strategy.
Along with PONS Patentes y Marcas Internacional, S.L. in the past few months, we have worked in SoHo3X´s IP strategy. They elaborated a valuation opinion for the corresponding patent with successful results. That reveals: high competitive advantage of IHT versus potential alternative competitors in relation to price, efficiency, eco-sustainability, raw materials and optical elements and technology. In economical terms, the valuation of IHT technology is $7.420.000.
- Objective: Identify potential industrial partners and define strategy to co-operate with them.
As mentioned above, we are defining the optimum production process on our own with the intention to materialize the production plant on 2016 for a capacity of 40MWp. Higher capacities shall be carried out along with potential industrial partners, as it is the case of the multinational industrial company Rubanox as well as manufacturing companies like REC, Kaneka or Panasonic.
On the economic side, the main objectives of the feasibility study were:
- Objective: Define which market segments within the PV market are more appropriate for initial deployment.
When it comes to define market segments into solar PV industry, we can get deeper than off-grid, rooftop and utility installations. According to international agencies and new trends in solar PV market, we can define segments as follow:
· Pico PV systems: typical small kits for small consumption (radio, etc…)
· Off-grid domestic: households and villages not connected to the grid.
· Off-grid non-domestic: provide energy to telecommunications, etc.
· Hybrid systems: combination of diesel and PV installations.
· Grid connected distributed: formerly known as rooftop.
· Grid connected centralized: formerly known as utility plants.
As part of the commercial plan, after large and exhaustive market study, we conclude to initially deploy SoHo3X in the international markets of USA, Mexico and Japan for grid connected distributed installations. We base this decision in both the large scale of this segment of the market and how the device improves the annual performance ratio as compared to a fix flat PV panel. Also, in Europe, we will launch in a first stage our SoHo3X to the German and UK markets.
We are developing commercial strategies with distributors already consolidated in several markets, supported by IHT’s commercial team.
Inside the off-grid segment (mainly pico PV systems), we will use the retailing channel and non-governmental organizations to market our product. Also SoHo3X website, www.soho3x.com is expected to be a complementary selling channel in this segment.
- Objective: Analyse potential customers within those segments and define a list of “best targets”.
Depending on the market segment, we can enumerate several potential customers which have already been or will be contacted:
· Pico PV systems: Decathlon, Leroy Merlin, Wal-Mart, UNDP, etc…
· Off-grid domestic: Local distributors and fitters.
· Off-grid non-domestic: Telecommunications, water pumps, etc…
· Hybrid systems: Local distributors and fitters.
· Grid connected distributed: Solar City, Vivint Solar, Lark Energy, etc…
· Grid connected centralized: GDF, Enel GP, GDP, FRV, etc…
- Objective: Identify potential business partners (investors) and business strategy to follow with them.
After SoHo3X presentation at the EU PVSEC 2015, we have established a good relationship with several key players in the solar PV market. All of them confirm our vision of the SoHo3X potential growth in the PV industry and they will help us to develop our product in the solar sector.
We have divided the partners in four different levels, depending on the task that we can develop with them: Big Accounts; Manufacturing; Distribution & Dissemination; Innovation.
- Objective: Gather more information to decide whether to manufacture modules or sub-license patent.
In June, we took the decision to start a new industrial lab in the North of Spain (Sondika), in order to develop the first industrial prototypes of SoHo3X by ourselves and learn about the manufacturing problems, and then prevent them for a bigger solar module manufacturer (Rubanox for instance). After this experience, we can state that we are going to combine those two scenarios in the future.
The first step is to build up a 40MWp factory in 2016 in Spain, then increase its production capacity by 20MWp during 2017. To this purpose, we have requested support to the experienced company Mondragon Assembly. It means that we expect to have a 60MWp capacity production running in two years.
At this point, i.e. the 40-60MWp factory running plus the SoHo3X in the market, we will be ready to show the rest of solar module manufacturers how to build a bigger factory. Both parties, collaborating together, will construct the proportional SoHo3X factory plant affordable by those new customers wanting to sub-licence SoHo3X.
With this diagram, we try to demonstrate our bet for the SoHo3X manufacturing in first step and giving confidence to the potential customers for sub-licencing the patent and manufacturing know-how.
- Objective: Analyse risks of the market and define strategies to overcome them.
The solar PV market is constantly growing; in the last years with annual increments of more than 30%. The evolution of the technology applied to PV (like holography applications in SoHo3X), the reduction of manufacturing and installation costs for economies of scale and the fact that solar energy reaches any place in the world (not depending on transmission lines or big power plants) lead us to the idea that a decrement of the demand in the market is quite unlikely. Most of the experts also affirm that the solar PV market will be the biggest energy market in the forthcoming future.
The major risk SoHo3X faces is a reduction of conventional solar PV panel sale price, forced by manufacturing cost reduction at a faster rate that our cost reduction. It could imply a disadvantage of SoHo3X in terms of sale price but our higher annual performance ratio will compensate the sale price by energy production enhancement.
- Objective: Start-up of a semi-manual module assembly process during 2015. 100 kWp are expected during this period. IHT has already searched for an industrial ally, the multinational industrial company Rubanox.
We, ourselves, have successfully implemented a semi industrial production line to manufacture SoHo3X production line in Sondika (North of Spain), as a better alternative, in order to define the most efficient production line for our new concept along with Mondragon Assembly and be able to transfer to other players, including our alliance with Rubanox. As we experienced during the EU PVSEC Congress, SoHo3X raised interest among several prestigious solar panel manufactures in the market (REC, Panasonic).
The first manufacturing objective in this line would be the 100kWp for the reference plants, planned before the end of the year. The delay in finishing the 100kWp before, according to the Phase 1 SME document, is due to the PMMA extrusion since we did not take into account the water-tightness problems that we have faced during last months. Nowadays, those extrusion problems have been resolved and we are continuing with our plans for delivering to the customers and CENER the rest of the devices.
- Objective: Certification of SoHo3X by IEC standards, in order to obtain bankability.
Certification is in progress. First, we have to end the 100kWp, to provide random samples for the test. In spite of the above, we consider that the objective is fulfilled with the good results obtained from the international lab results and the field results.
- Objective: Optimize production process together with Rubanox to have a 40 MWp production line during 2016.
Optimization of the production process is currently the main aim for IHT. We are investing own resources along with Mondragon Assembly and IHT Desarrollo, S.A. (our industrial lab in Sondika). A semi-manual process is already up and running, which has already given us enough information to optimize a production process.
- Objective: Increase in capacity and production up to 60 MWp in 2017, increasing employment to 80 people.
We have already increased our team in the past 4 months in 6 people and plan in growing 80 new employments for the next 2 years.
On the technical side, the feasibility study has focused on the following main objectives:
- Objective: Determine the PV market’s technical trends and how SoHo3X fulfils them.
BIPV has been contrasted as a new trend, and also isolated, off-grid systems and residential systems are increasingly wanted. This confirms that our business plan is on the right track.
- Objective: Confirm good results of SoHo3X by other institutions of international relevance.
We have successful results on our SoHo3X from the following renowned solar entities: CENER in Spain, the Spanish Institute for Solar Energy (IES) at the Polytechnic University in Madrid, French National Institute for Solar Energy (INES), TÜV Rheinland in Germany and the Autonomous University of Madrid (UAM) in laboratory reports. Apart from that we have received a report from our outdoor test in Abengoa and it confirms the lab results as well.
- Objective: Expand list of suppliers for key raw materials.
We have established strategical alliances with strong companies in their fields, as per the example of Evonik, Plasticos Alai, Kodak, Zink, Innoviscoat, Juncà, TOPSKY Electronics Technology, as main suppliers for the SoHo3X production. Due the expected growth, we have expanded list of supplier for each key account.
- Objective: Define the ideal dimensions of SoHo3X’s final commercial version.
As exposed above, we have defined ideal dimensions of SoHo3X and final commercial version based on the market study. Willing to reach all the different segments with just one product and the modularity offered by SoHo3X. Therefore, the final optimal dimensions are lengths of 1 and 2 meters.
- Objective: Analyse technical risks of the product and define strategies to overcome them.
A constant technical exchange with manufacturers and end-users, along with years of research in the world’s solar market have had a good harvest: SoHo3X incorporates numerous technological novelties responding to the main technical risks and making it a unique and versatile product, adaptable to any type of installation.
• Structure system: the base of SoHo3X (both aluminium and plastic) integrates a self-structured design. This concept incorporates rails that only need simple screws to be fixed to rooftops or vertical walls. The additional weight and cost of a mounting system are thus avoided, and the BoS proportionally reduced. In addition, infinite building integration (BIPV) possibilities are suddenly opened (https://vimeo.com/138843687(s’ouvre dans une nouvelle fenêtre)).
• Soiling: at the design stage, the technical team of IHT also took into account the higher soiling expected from a V-shaped structure. To that end, SoHo3X integrates novelties both in the device fixing and in the materials in which it is built. Furthermore, standard automatic cleaners can clean the devices only by using specific heads.
• Weathering: SoHo3X is built in materials with very high perspectives for technological evolution, cost reduction by scale economies and easy recyclability at the end of their lifetime. On top of that, SoHo3X is IEC compatible, which warrants the device a good performance in all latitudes.
• Device interconnection: the modularity of SoHo3X allows covering a gap detected in the current world market: nowadays, no single product addresses all applications in solar energy. SoHo3X are light, low power, modulable devices, easy to install and interconnect. This also empowers the end-users to reach their desired voltage and current, not those imposed by the manufacturer. The product also offers the possibility of pre-assembled devices at higher, currently standard powers.
• Assembly parts: building integration (BIPV) is one of the key challenges of solar energy. Due to its higher energy harvesting by light trapping, SoHo3X can be installed either vertically or horizontally without the big production losses associated to a conventional module in such orientations. This allows adapting our devices to the most diverse architectural applications by means of specifically designed assembly parts.
- Ojective: Define appropriate Intellectual Property (IP) strategy.
Along with PONS Patentes y Marcas Internacional, S.L. in the past few months, we have worked in SoHo3X´s IP strategy. They elaborated a valuation opinion for the corresponding patent with successful results. That reveals: high competitive advantage of IHT versus potential alternative competitors in relation to price, efficiency, eco-sustainability, raw materials and optical elements and technology. In economical terms, the valuation of IHT technology is $7.420.000.
- Objective: Identify potential industrial partners and define strategy to co-operate with them.
As mentioned above, we are defining the optimum production process on our own with the intention to materialize the production plant on 2016 for a capacity of 40MWp. Higher capacities shall be carried out along with potential industrial partners, as it is the case of the multinational industrial company Rubanox as well as manufacturing companies like REC, Kaneka or Panasonic.
On the economic side, the main objectives of the feasibility study were:
- Objective: Define which market segments within the PV market are more appropriate for initial deployment.
When it comes to define market segments into solar PV industry, we can get deeper than off-grid, rooftop and utility installations. According to international agencies and new trends in solar PV market, we can define segments as follow:
· Pico PV systems: typical small kits for small consumption (radio, etc…)
· Off-grid domestic: households and villages not connected to the grid.
· Off-grid non-domestic: provide energy to telecommunications, etc.
· Hybrid systems: combination of diesel and PV installations.
· Grid connected distributed: formerly known as rooftop.
· Grid connected centralized: formerly known as utility plants.
As part of the commercial plan, after large and exhaustive market study, we conclude to initially deploy SoHo3X in the international markets of USA, Mexico and Japan for grid connected distributed installations. We base this decision in both the large scale of this segment of the market and how the device improves the annual performance ratio as compared to a fix flat PV panel. Also, in Europe, we will launch in a first stage our SoHo3X to the German and UK markets.
We are developing commercial strategies with distributors already consolidated in several markets, supported by IHT’s commercial team.
Inside the off-grid segment (mainly pico PV systems), we will use the retailing channel and non-governmental organizations to market our product. Also SoHo3X website, www.soho3x.com is expected to be a complementary selling channel in this segment.
- Objective: Analyse potential customers within those segments and define a list of “best targets”.
Depending on the market segment, we can enumerate several potential customers which have already been or will be contacted:
· Pico PV systems: Decathlon, Leroy Merlin, Wal-Mart, UNDP, etc…
· Off-grid domestic: Local distributors and fitters.
· Off-grid non-domestic: Telecommunications, water pumps, etc…
· Hybrid systems: Local distributors and fitters.
· Grid connected distributed: Solar City, Vivint Solar, Lark Energy, etc…
· Grid connected centralized: GDF, Enel GP, GDP, FRV, etc…
- Objective: Identify potential business partners (investors) and business strategy to follow with them.
After SoHo3X presentation at the EU PVSEC 2015, we have established a good relationship with several key players in the solar PV market. All of them confirm our vision of the SoHo3X potential growth in the PV industry and they will help us to develop our product in the solar sector.
We have divided the partners in four different levels, depending on the task that we can develop with them: Big Accounts; Manufacturing; Distribution & Dissemination; Innovation.
- Objective: Gather more information to decide whether to manufacture modules or sub-license patent.
In June, we took the decision to start a new industrial lab in the North of Spain (Sondika), in order to develop the first industrial prototypes of SoHo3X by ourselves and learn about the manufacturing problems, and then prevent them for a bigger solar module manufacturer (Rubanox for instance). After this experience, we can state that we are going to combine those two scenarios in the future.
The first step is to build up a 40MWp factory in 2016 in Spain, then increase its production capacity by 20MWp during 2017. To this purpose, we have requested support to the experienced company Mondragon Assembly. It means that we expect to have a 60MWp capacity production running in two years.
At this point, i.e. the 40-60MWp factory running plus the SoHo3X in the market, we will be ready to show the rest of solar module manufacturers how to build a bigger factory. Both parties, collaborating together, will construct the proportional SoHo3X factory plant affordable by those new customers wanting to sub-licence SoHo3X.
With this diagram, we try to demonstrate our bet for the SoHo3X manufacturing in first step and giving confidence to the potential customers for sub-licencing the patent and manufacturing know-how.
- Objective: Analyse risks of the market and define strategies to overcome them.
The solar PV market is constantly growing; in the last years with annual increments of more than 30%. The evolution of the technology applied to PV (like holography applications in SoHo3X), the reduction of manufacturing and installation costs for economies of scale and the fact that solar energy reaches any place in the world (not depending on transmission lines or big power plants) lead us to the idea that a decrement of the demand in the market is quite unlikely. Most of the experts also affirm that the solar PV market will be the biggest energy market in the forthcoming future.
The major risk SoHo3X faces is a reduction of conventional solar PV panel sale price, forced by manufacturing cost reduction at a faster rate that our cost reduction. It could imply a disadvantage of SoHo3X in terms of sale price but our higher annual performance ratio will compensate the sale price by energy production enhancement.
Progrès au-delà de l’état des connaissances et impact potentiel prévu (y compris l’impact socio-économique et les conséquences sociétales plus larges du projet jusqu’à présent)
The final results have already been presented: the product has shown a high potential to be well accepted in different PV market segments, which have been studied. Key partners have been identified and contacted for many levels, including manufacturing, sales channels and innovation possibilities. Trends in the PV sector indicate that the product, only one format for all segments, will be very welcome, especially in the BIPV, residential and off-grid segments. Also, Japan and the US have been identified as the first market targets.
The action is framed within the low-carbon energy sources, reaches cost reduction potential from already existing solutions, and new solutions where current solar products are flurry to use (for instance, pico-PV). The societal impact is therefore expected to be important especially for these new solutions. Also, 4 direct employments have been created within the action.
The action is framed within the low-carbon energy sources, reaches cost reduction potential from already existing solutions, and new solutions where current solar products are flurry to use (for instance, pico-PV). The societal impact is therefore expected to be important especially for these new solutions. Also, 4 direct employments have been created within the action.