CELL & MODULE Interview china
Photo by InterPV
Upsolar:
Excellence
at Each Step
With vertically-integrated manufacturing platforms and
an R&D-supported quality control system, Upsolar’s
premium mono- and polycrystalline modules are reputed
to be peak-performance modules in the PV industry.
It’s a result of the company’s ‘Excellence at Each Step’
approach, Zhe Jiang, CEO of Upsolar, emphasized.
Reported by Stella Lee ([email protected])
Upsolar has a very special position within the PV industry with its unique business model. Can you describe it briefly?
Two main categories of module suppliers
dominate the PV landscape: the traditional
manufacturer model and the Original Equipment Manufacturer (OEM) model, each
own distinct and well-known advantages as
well as disadvantages. Upsolar’s business
model is essentially a hybrid of the two, taking the best that each model has to offer and
fusing them together to create an ‘assetlight’ manufacturing model. We outsource
our production while maintaining tight control over our cost and quality, and the result
is─at any given time─the best solar solution
on the market today.
A common misconception is that Upsolar
is an OEM manufacturer. The reality is that
we lease our manufacturing tools, and then
we focus resources on what we consider to
be most important. We emphasize component quality and end-user-oriented product
design, ultimately integrating technologies
that optimize performance both at the module as well as the system level. That is the
key to how we achieve our high quality-tocost ratio.
What motivated you to take this route?
This industry moves very quickly. In the
face of frequent policy changes, constantly
emerging new technologies and fluctuating
80
Zhe Jiang, CEO, Upsolar
November, 2011
prices of products and raw materials, we envisioned a business model that would fare well
under all types of market conditions. For example, when a new technology is introduced,
manufacturers with most of their investment
tied to production often have to write off their
capital expenditures. With our asset-light approach, Upsolar is able to adapt this technology in a very short time frame without extra
capital expenditure, maintaining flexibility in
product development, the ability to scale manufacturing to respond to demand, and up-todate production technology.
From the very beginning, we wanted to
function in a way that allowed us to constantly identify and work with the most
competitive partners at each step of the manufacturing process. This has helped us develop a product that, on closer examination into
any given component, it is easy to recognize
its added value. This is done through our
‘Excellence at Each Step’ quality assurance
process. We designate dedicated teams to vet
technological innovations and test them in
the lab, who then follow the process from
beginning to end-streamlining it to integrate
only the technologies that meet our high
standard of quality and performance. These
teams then monitor the quality of the production processes at every stage to ensure
durability.
How has Upsolar been doing this year?
We are on track to reach our target of 300
MW in shipments this year, and we’re looking to expand our shipment capacity to 500
MW in 2012. Compared to last year, our
compound growth rate is up 80%. In addition, we are building up our local teams,
with on-site and on-the-ground support in
over 15 countries worldwide.
What are some new developments at
Upsolar?
The company is undertaking a groundbreaking sustainability initiative with a cradle-to-grave approach. Upsolar recently
began a voluntary study to determine our
impact via a comprehensive Life Cycle Assessment (LCA) of our manufacturing platforms. We are one of the first to do such a
thorough assessment of the impact of our
manufacturing processes on the environment. Given increasingly strict environmental standards and demands of end-users
themselves, we are certain that our efforts
have been well directed, and it is our hope
that others will soon follow suit.
What role do you believe China will have
in the coming years, and how do new
policy developments in China affect your
business/strategy?
In the short term, our strategy will not experience any drastic changes. As with all
global emerging markets, we believe it is
critical to have a deep understanding of the
market. As the Chinese government increases its support for the development of the
solar PV industry on the consumption side
to match with its current position as a supplier of modules, its role as a major PV market
November, 2011
“In the face of frequent policy changes,
constantly emerging new technologies and
fluctuating prices of products and raw materials,
we envisioned a business model that would fare
well under all types of market conditions.”
- Zhe Jiang, CEO, Upsolar
will continue to increase. The policy developments certainly work in our favor by
opening up massive potential, and by following it closely as the regulatory environment stabilizes, we will be on track to reap
the advantages of the Chinese market.
Upsolar has impressive performance in
European markets. What do you attribute your success to, and how will you
continue to meet the needs of your global customer base?
Our customers have expressed satisfaction
in our continual product development, the
quality of our product, our diverse package
offerings and our comprehensive array of
module warranty and insurance coverage.
We are able to perform strongly on these
fronts because of the strength of our local offices and the commitment of our employees
to the Upsolar cause.
Without feedback from our sales teams on
the ground, we would never be able to identify or meet the needs of local markets.
These needs―as well as challenges―are
communicated and responded to in a timely
manner, allowing the company as a whole to
be among the first to really adapt to the market structure and the demands of our global
customers.
Tell us more about Upsolar’s EU-made
product.
In the PV industry, supporting local economic development is a key and often drives
incentives and policies. Upsolar has a ‘Made
in Europe’ certified product that will qualify
end-users to reap additional benefits on the
Italian FiT policy. These modules are produced using German-sourced solar cells and
certified by Italian PV certification authority,
ICIM. By using locally sourced components
as well as diversifying the locations of our
manufacturing platforms, we are ensuring
that our customers worldwide are able to
benefit from an array of features marked by
quality-driven performance and reliability.
Can you describe your own vision and
long-term strategy for Upsolar?
A successful PV module company is in
tune with and responsive to the state of the
industry, which has always been a challenge
because of the differences across international and regional markets. Though largescale projects will continue to be built and
remain an integral percentage of total installed PV worldwide, distributed generation
will become increasingly more popular, especially with trends in regional incentive
policies. We are developing our sales and
distribution channels accordingly─in addition to the structure necessary to keep up
with such a dynamic and unpredictable policy environment, we are working on several
business packages that cater to the needs of
different types of customers.
From a product development perspective,
we will also continue our commitment to
continuous innovation. We focus on creating
synergies between Upsolar and strategic
partners in the industry, attracting new technologies and presenting the customers with
best-in-class PV solutions.
A lot of companies talk about innovation. How does Upsolar define ‘innovation’, and how does it manifest itself in
your products?
Our business model is the embodiment of
innovation. We refuse to believe that all
modules are the same, the needs of every
customer are the same, and that the only
room left for improvement is through reducing the cost. By way of the technologies integrated into our products and the flexibility
of our manufacturing process to implement
them, we have refocused our resources and
our efforts to design a new take on a familiar
product that is embedded with the newest
and best technological innovations. The result is the highest quality-to-cost ratio, and a
product that can truly be considered innovative.
What are the greatest challenges you
anticipate for the PV industry, and how
does Upsolar plan to overcome them?
There is no question that grid parity will
be reached, either through decreasing product or system cost. One challenge that we
are really focused on currently is the storage
of excess energy. We know that there are
companies actively searching for solutions
to this problem, and we are always looking
for partners. This is part of what excites us at
Upsolar-when you see the product rapidly
changing and efficiency improving, you can
adapt your product offering and even your
business model to meet the needs of the dynamic industry.
Stella Lee is Editor of InterPV. Send your comments to [email protected].
81