Solar laminator manufacturers paint bleak picture
Lamination of solar panels is an essential part of the photovoltaic panel manufacture process, protecting the sensitive material within solar panels from damage and the environment, as well as providing rigidity. As with all photovoltaic panel production equipment manufacturers, 2012 was a difficult year for laminator producers. As we head on into 2013, producers say there is little sign of any upturn. Manufacturers who responded to inquiries from PV Solar Magazine all reported weak demand, and in one case acknowledged capacity had been reduced, while rumours of factory closures were widespread in China and elsewhere.
However, some manufacturers are putting their faith in the on-going rapid decline in photovoltaic panel prices, which is bringing costs ever closer to grid parity, and is keeping upward pressure on solar panel demand – suggesting a rosy longer term future for laminator manufacturers, if they can remain in the market. Some suggest the consolidation among panel producers could be over as early as the end of the year, although many others who were unobtainable or chose not to comment are perhaps likely to be more pessimistic.
Whatever their perspective on the market, to compete for remaining orders laminator manufacturers are continuing to focus on cost reductions, or innovation in equipment or process that will speed production or improve automation and quality, to reduce photovoltaic panel production costs.Others are simply upgrading models in preparation for an upturn, and have little hope of selling much in the near term. In one case, innovations in lamination are claiming to have improved the quality of panels so much as to have doubled anticipated lifetime - which means an effective halving in panel costs per unit of electricity generated, which could in itself make a substantial contribution to moving solar panel costs to grid parity.
However those plans are still being developed. The bulk of today’s laminating machines makers produce basic models using established technology and are located in China, alongside the bulk of solar panel manufacturing. Researchers, ENF, estimate 70% of all laminating machines originated in China, with the bulk sold to domestic panel producers. A spokesperson for Boostsolar – the world’s largest producer, with almost a third of global installed capacity in early 2012, according to data from ENF (see table) - described current market conditions as “really terrible”.
“The Chinese home market is even worse than the export market. This is because of theU.S. sanctions. Chinese companies don’t want to produce more [panels] in China anymore,” she said, referring to the tariffs imposed by the U.S. on imports of photovoltaic solar panels from China. However, Kit Temple CEO of ENF, suggested it was overcapacity behind current Chinese problems rather than sanctions. The E.U.is considering a similar moveto the U.S., which introduced sanctions as a defence against what it claims is dumping (selling below cost) by Chinese companies in the U.S. market. The E.U. is expected to make a decision by June 2013.
“If Chinese companies want to compete in these countries they must make panels outside China,” said the Boostsolar spokesperson.However, while demand for Chinese-made panels for export had been hit by the tariffs,she said domestic demand for panels was strong, but not strong enough to require any expansion of existing manufacturing lines, which she said could easily cope with this local buying. This meant very weak demand for laminators and other panel manufacturing equipment.She was unable to comment on rumours that hundreds of workers had been laid off at Boostsolar.
A spokesperson for Hebei Yiheng, producer of the Orient brand, with almost a 25% shareof installed capacity according to ENF’s table, agreed that market conditions were bad. He acknowledged that some laminator production capacity at his company was not being used, but was unable to comment further. At least one Chinese producer –Gold Solar, based in Qinhuangdao – was said to have closed altogether, while several companies contacted for this report failed to respond or had unobtainable phone lines.
European producers were similarly negative: “No-one is replacing older machines, no-one is increasing capacity, and there are plenty [of laminators] available in the second hand market from those who’ve left the market”, said VittoreDeLeonibus, MD of Teknisolar, which he founded in 2009. Panel manufacturer bankruptcies have led to a thriving second hand market for laminators, including at specialist equipment and online auction or trading sites, such as Alibaba.com, and jvg-thoma.de. The sector is in “deep crisis”, he said, although he added that Teknisolar itself was relatively well-placed due to a new range of innovative products; its small size, low sunk costs and because its laminators (more below) are just a part of its integrated production line offerings.
The Boostsolar spokesperson said rising costs at home were also an important factor in weak Chinese demand. “Some Chinese [panel manufacturing] companies are looking for more ways to cut costs because prices keep falling,” she said. “They are moving outside China, and we are also seeing more demand for automated [laminator] machinery and less for manual.” The spokesperson was unable to comment on whether Boostsolar intended to move any laminator manufacture overseas, to follow the panel manufacturers, or whether it would close or mothball capacity in China.
Spirecorp, a U.S.producer of panels and laminator machines, has already announced moves to expand panel manufacture in new “turn-key factories” in the lowest cost production centers it can find outside the U.S. Speaking in a webcast, Spirecorp founder Roger Little said it was targeting production in Bangladesh, India, Africa and South America to ensure low cost and local supply, which is being encouraged by local governments eager to build a domestic solar industry. The panel factories help provide some demand for its laminators.Spirecorp was unable to comment for this article despite repeated attempts at contact.
While Europe used to dominate the world panel market with over two thirds of global demand as recently as 2011, growth in developing nations, including India and south-east Asia, as well as China and Japan, should lead to further opportunities – not necessarily linked to cost savings - for panel and laminator manufacturers to expand globally as countries seek to attract a solar manufacturing base.This could be good news for non-Chinese laminator producers, who have sold little in China, with companies like P.EnergySpA. – a major producer with 15 products, mainly catering to the relatively small 10-30MW/year production range – admitting recently that it had never made a commercial sale in China.However the reverse is also true according to ENF’s Kit Temple: “Chinese companies will happily take Chinese brand laminators – but Chinese brands will find it hard to sell to European and U.S. manufacturers”, he said in an email.
While closures and exits were widely rumoured, one company at least is considering entering the market. A spokesperson for Hanwha in the U.S. confirmed that it was preparing for such a move, with a range of new products, but said it was too early to comment on product specifics or on where the machines would be manufactured.
Competing for remaining demand and preparing for the upturn
To compete for remaining demand laminator manufacturers can reduce prices, speed up or improve panel production rates and/or improve the lamination processes and quality. Low cost traditional single panel laminator production is now dominated by producers such as Boostsolar, Yiheng Hebei and,as Indian demand takes off,Hindivac -built on supply to their domestic panel manufacturers. Some companies have slashed prices, with China’sBaixin Machinery, cutting by as much as 40% in 2012, and EETS of the UK by 28%, according to Mr DeLeonibus. Such cuts may be the last resort for producers in trouble, depending on leverage and other factors.
Other companies such as Meyer Burger,Teknisolar, Burkle, NPC Meier and Spire appear to be relying more on innovation to maintain market share. Mr Deleonibussaid new efficient and advanced laminators, like the ones Teknisolarhad developed, could reduce the number of people required to produce 150MW/year of photovoltaic panels from 256 to 26, with the additional costs of its’ advanced models taking cost savings from as little as seven months full operation to pay back investment.
Most revolutionary among the list of innovators, at least among those who responded to a widely circulated inquiry from PV Magazine, was Meyer Burger, which has designed new models that include the soldering part of the photovoltaic panel production line, as well as lamination – an all in one product. Speaking for the company, Chief Technical Officer Herr Leu, said the company had developed a new product range with major innovations in response to the trends seen by Meyer Burger towards demand for lower panel production cost and higher laminating quality.
He said the new laminating machines actually encompass three major technological advances – the soldering component or Smart Wire Concept (SMT), Full Glass Modulization and the use of TPO polythene as a laminating material, rather than the more traditional EVA polymer. EVA (ethylene venyl acetate) materials cover about 85 to 90% of the worldwide market today.
Smart Wire Concept incorporates the entire soldering process stage of manufacture into the lamination process, which saves substantial time and money. This is a fundamental development that shrinks the production line. At the same time the soldering is upgraded to give up to 7,000 soldered points on cross-wires laid on the panel, which produces a fine electrical grid that enables the panel to work even if it becomes damaged.
The quality of the panel depends on those cross linked soldered points, said Herr Leu. The effectiveness of the cross-linking is measured by the GEL content. If manufacturers can lift the GEL to 80%, which Meyer Burger’s new laminating machine models are designed to achieve, the panels’ average lifetime can be doubled to 40 years, from typical existing lifetimes of 20 years. In order to reach these levels, feedback from the panels during the manufacturing process is necessary, so fine adjustment can be made during cooling and after the actual lamination. This feedback and adjustment takes place in the temperature range 100-120c, after the panel has been heated to a lamination temperature of 150c.
Full Glass Modualization (FGM) encases the whole panel in glass rather than just one side, as in most existing laminator models. Application of glass also helps extend panel life towards 40 years and beyond, enabling a halving in the price of panels per KWh generated. However, if glass is used to coat both sides, EVA polymer laminating materials cannot be used within the panel, as EVA emits gases during its lifetime, which impermeable glass does not allow to escape.
In its’ place Meyer Burger’s technicians have turned to TPO – a type of polythene that does not emit gases and also improves transmission, durability and lifetime. In the past TPO had been rejected as a laminating material as it had not passed rigorous E.U. full fire tests, but that testing has now been successfully completed, said Herr Leu. The use of glass encapsulation and TPO combined means that a frame is no longer needed, saving an additional Euro20 per module, he added.
Finally Meyer Burger’s new laminating machine will also integrate bypass diodes into the solar module between the glass and edges, enabling a reduction in module cabling from 2m down to 20cm. The end product’s bypass diodes and associated junction box is much smaller than in current designs. Herr Leu said these attributes would draw buyers seeking lower cost per panel and higher quality, switching demand from Chinese manufacturers who tended to focus on reducing cost of existing technology rather than innovation.
Other examples of recent developments include a new solar PV lamination system model from Burklein late 2011, which uses its new SL technology. The three-step single-opening laminators (e.a.sy-Lam SL) can produce 110 MW of panels per year (MWp). At full production, it is claimed a 10-opening laminator can produce 265 MWp, representing a doubling of capacity from the current standard process, according to Burkle.
Burkle says its can cut laminating times from 11 to 7 minutes for some of its SL series and newly-launched VVV and VFF series machines, cutting operating costs per panel by as much as a quarter. Other manufacturers, including U.S. Komax Solarhave also managed to cut process times sharply - to 7 minutes in the case of Komax’s new two-step laminator, the XLam 21/34E-2st. 3S Swiss Solar Systems has halved its process time to 7.5 minutes for its XL series, by combining the laminator with a preheating section. NCP-Meier has reduced the process time for its standard German-made machines from 16 minutes to 12 minutes. Its TSL series, which employees a two-step process for laminating, has reportedly cut process times to 6 minutes, and a new concept called SPRINT claims to cut times to just 3 minutes.
Lower panel prices have increased the importance of raw material costs, such as EVA. Teknisolar’s Mr DeLeonibus said it that although EVA was the most widely used material, PVB was better due to its structural resistance. He said the company was researching a number of materials including Dupont’sionomer. PVB is mainly used in thin film production, but process times are currently much longer than that required for EVA, with higher pressure and heat.
Another way of lowering panel makers’ operating costs is to source parts that need replacing on a regular basis from China. This includes the membranes, which need to be replaced every 3,000 cycles, and transport belts, which wear out after 5,000 cycles. The sourcingof components where most laminators operate brings down costs down, although it may complicate logistics.
Another approach, followed by Italy’s Teknisolar and initiated by Germany's Schimd, is to remove the membrane altogether. The technology allows savings in operation and maintenance costs, including extra outlays for the membranes. Teknisolar’s Mr DeLeonibus, said the new product range it launched in 2012 did not have membranes. As well as avoiding the need for costly replacements altogether, the new range also avoids the risk of panel damage caused if the membrane breaks while in use, which can be costly with multi-panel laminators, he said. However, other producers have cautioned that laminators without a membrane are suitable only for customers that do not change their product specifications.
Mr DeLeonibus said Teknisolar was focusing on multi-panel laminators which can handle 3 to 12 panels of 60-72 cells each simultaneously to facilitate cost savings among panel producers. “There are plenty of single level laminators, multi-level saves time and space”, he said. Although multi-stack products are gaining market share – despite disadvantages with maintenance and servicing -Teknisolar and others still also offer less expensive single-stack products for smaller panel makers, some of which have low overheads and borrowing and are still able to buy.
The Teknisolar models also have pincers for lifting, which helps the panel heat and cool evenly with radiated energy rather than direct contact, avoiding the “butterfly effect” where uneven heat causes the panel to bend up at the edges. There has also been development in the process of nip rollers for lamination, in contrast to the flat-press process. However, nip rollers are mostly used for thin-film applications with glass-glass module configurations, and this market is currently all but non-existent.
Across the globe, laminator suppliers are struggling to keep their heads above water as they continue to look forward to a market upturn. In the meantime,most are tailoring their products to better meet the needs of squeezed panel makers, and those best able to do so will be ready to ride the next wave of solar expansion, when it comes – as it surely will.
Top Ten Laminator Manufacturers (by total installed capacity)
1 / / Qinhuangdao Boostsolar Photovoltaic Equipment Co., Ltd. / 32%2 / / Hebei Yiheng Solar Energy Science & Technology Co., Ltd. / 24%
3 / / Shanghai Senco Technology Co., Ltd. / 16%
4 / / Qinhuangdao Rising Solar Energy Science & Technology Co., Ltd." / 4%
5 / / Wuxi Jinda Solar Technology Co., Ltd. / 4%
6 / / Meier Solar Solutions GmbH / 2%