Value Chain Activity: Manufacturing Solar Glass
Photovoltaic modules use solar glass for protection, performance enhancement and as a substrate for thin film modules.
Market Size and Growth
in 2007, 138 million tons of glass were produced. Of this, 50 million tons were flat glass, which is used in solar modules and reflectors. The flat glass market is worth €21bn annually. Some glass is further processed by laminating, tempering, coating and silvering, making this a market of $60bn annually. Growth has generally outpaced real GDP growth, boosted by demand from automotive and construction sectors in China, but also by extending the use of glass to new, innovative applications. The flat glass market alone is predicted to grow by 5% annually. |

|
Supply & Demand of Flat Glass
There is a regional imbalance between demand and supply for flat glass. While China produces more glass than it consumes, Europe and the Middle East, and to a lesser extent North America are net importers of glass, despite the relative high transport costs for glass.
This imbalance stems probably from the high cost of energy, which is a large part of glass manufacturing, in Europe. |
The Solar Glass Segment
Bright clear glass is needed for all photovoltaic applications. The properties of this glass are different from standard glass, requiring specific designs for the plant to cater for higher melting temperatures and prevent contamination by iron particles. Standard glass may be adequate for some thin-film modules, but for all others, solar grade glass is essential.
Yet, Solar Glass accounts for only 0.7% of the flat glass market, even though this share is set to grow to 1.1% by 2012.
|
Industry Dynamics
Barriers to entry
A production line for float glass requires significant investment. In addition, access to low cost energy is essential. However, due to high transport costs, vicinity to customers is key in the solar market, lowering the barriers for new entrants.
|
|
Upstream: Non-differentiated supply prices set by market
The input materials are widely available oxides. However, the resources for low iron raw materials needed for ultra bright solar glass are limited and expensive.
|
|
 |
 |
Conclusion
The solar glass business is very profitable, boosted by growth in the solar market. As traditional companies do not offer a business model that is suitable to PV companies, we will see more new entrants to this competitive market, solely dedicated to solar glass and mirrors. |
 |
Competition
Competitors
60% of the world's high quality float glass is produced by four companies: Asahi, NSG Group (Pilkington),
Saint Gobain and Guardian. For most glass companies, the solar glass segment is only a very small part of their business. At current production levels, it is difficult for factories to have dedicated solar float lines. Typical glass lines produce a variety of different thicknesses and grades. Requirements of large stock to achieve economies of scale and set-up times make production of solar glass often inefficient.Hence, traditional glass manufactures are more focused on automotive and construction glass.
Product Differentiation
With high transport costs, there is need for "fresh" glass, i.e. glass that is produced in the vicinity of the module manufacturer. Quality differentiation is more important for crystalline silicon modules. Thin-film modules may more likely accept lower grade float glass with competition on price.
|
 |
|
 |
 |
Substitution
While there are alternative technologies around for mirrors, the only alternative to ultra-clear solar glass for PV modules is standard construction glass. |
|
Downstream
Increasing demand from module manufacturers worldwide puts pressure on the supply of solar glass, which is only a small part of the business of large glass manufacturers.
With high transportation costs for glass, glass production should be close to module manufacturers. |
|
Cost Structure
For the production of float glass, energy and raw materials make up more than 70% of the cost of goods sold.
At 30 €/m2, pv-glass is already a substantial cost of a module, especially thin-film modules. In addition, transportation costs can be up to 25% of the total cost for glass. This puts enormous cost pressure on logstics and favours therefore glass manufacturers that are close to their customers.
Hence, despite huge production capabilities in China, that output may be too expensive for solar manufacturers due to transport costs. |
Company Details
Name |
Solar Glass Pureplay? |
Country |
Comments |
Top 4 Companies |
|
|
|
AGC Solar |
x |
Belgium |
Global glass manufacturer supplying front glass for pv modules as well as mirrors for concentrating devices. |
Pilkington |
|
UK |
Pilkington is the flat glass business of the NSG group. It has developed self-cleaning solar glass. |
Saint Gobain Solar |
|
Germany |
Part of the construction group Saint Gobain, produces solar glass. |
Guardian |
|
USA |
One of the largest glass manufacturers. Has its own "EcoGuard" line including pattern and float glass as well as mirrors for solar applications. |
Other Glass Manufacturers |
|
|
|
CentroSolar Group AG |
x |
Germany |
Manufacturer of solar glass, but also integrated into multi-crystalline cells. The glass business was sold to Ducatt, which filed for bankgruptcy in 2017 |
Guangdong Golden Glass Technologies Ltd |
|
China |
Guangdong Golden Glass specialises in glass for BIPV modules: flat, curve, exposed frame or frameless. |
Gujarat Borosil Ltd |
x |
India |
Specialty glass manufacturer, produces low-iron solar glass with a light transmission factor of > 91.5%, cut to customer's size requirements. |
Hangzhou AMD PV Glass Co Ltd |
|
China |
Manufacturer of PV front glass, and thermal collector glass. Exclusive supplier to Suntech and Canadian Solar. |
Hecker Glastechnik |
x |
Germany |
Manufacturer that specialises in solar glass for PV modules and solar collectors. |
Interfloat |
x |
Liechtenstein |
Manufacturer of solar glass - transmission factor 91.8% +/- 0.5% |
Targray Solar |
|
Canada |
Supplies all raw materials for solar cell / thin film processing. Supplies poly-silicon, but does not produce it. Also manufactures solar glass. |
Sisecam Flat Glass |
|
Turkey |
Manufacturer of glass for solar, automotive and construction industries. It serves PV and solar thermal applications. |
Reflector Manufacturers |
|
|
|
Alanod-Solar |
x |
Germany |
Reflector Surfaces |
Almeco |
x |
Italy |
Produces Vegaflex reflectors for CST power plants |
Flabeg |
|
Germany |
Manufacturer of parabolic glass mirrors, but now more focused on cosmetic and automotive industry. |
|