J Rajaraman
Managing Director Canadian Solar Energy Private Limited
Adoption of solar energy is reasonably high in the textile industry
Founded in 2001 in Ontario Canada, Canadian Solar is as a global energy provider with successful business subsidiaries in 20 countries and regions on six continents. Canadian Solar is both a leading manufacturer of solar PV modules and a provider of solar energy solutions, with over 14,000 employees globally. In a chat with Fibre2Fashion, Canadian Solar’s Managing Director J Rajaram talks about global solar energy market, and adoption of solar energy by the textile industry in India.
What is the size of the solar energy market globally? At what rate is it growing?
According to IHS Markit, in 2022, 253 GW of solar photovoltaic (PV) systems were installed globally, which was 43 per cent more than the previous year. More than 360 GW of PV additions are expected in 2023, which would mean two consecutive years with 43 per cent year-over-year growth. Had it not been for labour shortages and other local factors that delayed some installations, the installed capacity would have been even greater.
What is your share in the global market?
In 2022, Canadian Solar shipped 21 GW solar modules worldwide, accounting for around 8.3 per cent of global market share.
What is your annual production capacity?
By the end of 2022, our ingot, wafer, cell and module capacities are 20.4GW, 20GW, 19.8GW, 32.2GW respectively. We are expanding production capacity to satisfy the fast-growing market need. By the end of 2023, we expect to expand our wafer, cell and module capacities to 35GW, 50GW and 50GW respectively.
Which are your major markets? Where are the prospects growing?
Our major markets are Europe, the US, Latin America, China, Japan, Southeast Asia, India, Australia, Middle East and Africa. All these areas are growing fast in recent years. For example, Wood Mackenzie forecasts 416 GWdc of new solar PV capacity to be installed between 2022 and 2031 in Europe, reaching 615 GWdc of cumulative capacity. Nearly all countries in the region will exceed their solar targets, largely driven by policy support and favourable solar economics.
Which industries are harnessing solar power to be more sustainable?
PV solar can be installed on factory building rooftop, and many industries can use the rooftop solar system to make their factories more sustainable. Rooftop PV installations represented 41 per cent of all additions in 2022. As the demand for distributed generation stayed strong, the rooftop PV installation will witness stable growth in 2023.
How is the adoption within the textile industry?
The textile industry, especially in Tamil Nadu, has been harnessing more solar power as it saves almost 50 per cent of the electricity cost. Five years on, there would not be a single textile company without solar energy. Compared to any other industry, adoption of solar energy is reasonably high in the textile industry.
What kind of solar products are used to power operations by some of your clients in the textile realm?
Most of the textile companies utilise their rooftop space, and also develop projects in remote location. They adjust solar power generation with their consumption requirements.
What benefits does using solar power provide to textile manufacturers?
By shifting to solar power, textile manufacturers can save on their electricity costs, and also avail accelerated depreciation benefit for any investment made.
What would be your suggestions to the government to improve the solar ecosystem in India?
In India rooftop potential is very huge. The government should allow net metering policy for all residential users, without specifying the cap on the capacity. Tax benefits also need to be extended for residential rooftop segment, and it will create opportunity for solar rooftop investment throughout India. However, the government should not allow setting up of solar projects on fertile lands, and suitable policy needs to be implemented.
What are the future plans at Canadian Solar?
For the first quarter of 2023, Canadian Solar expects total revenue to be in the range of $1.6 billion to $1.8 billion. Gross margin is expected to be between 18 per cent to 20 per cent. Total module shipments recognised as revenues by CSI Solar are expected to be in the range of 5.9 GW to 6.2 GW, including approximately 133 MW to the company’s own projects.
For the full year of 2023, we reiterate the prior outlook for total module shipments to be in the range of 30 GW to 35 GW. Battery storage shipments are expected to be in the range of 1.8 GWh to 2.0 GWh, representing this year’s transition from white label to own manufactured product. Our total revenue is expected to be in the range of $8.5 billion to $9.5 billion.
Interviewer: Shilpi Panjabi
Published on: 14/04/2023
DISCLAIMER: All views and opinions expressed in this column are solely of the interviewee, and they do not reflect in any way the opinion of Fibre2Fashion.com.
