What constitutes a gross margin in PV Manufacturing?

The operating margin, R&D expenses, and SG&A expenses together constitute the gross margin. Broadly speaking, the PV manufacturing environment has been challenging in terms of overall profitability.

What determines the competitiveness of the photovoltaic supply chain?

The profit margin of the photovoltaic supply chain, resulting from the reduced costs of operation, design, and maintenance of the system, represents another determining factor for the competitiveness of the sector (He et al., 2017, Lee et al., 2012, Liu et al., 2017, Liu and Lin, 2019, Wijeratne et al., 2019, H.J.J. Yu, 2018).

What is the economic analysis of the investment in solar PV farms?

The economic analysis of the investment in solar PV farms includes the calculation of the weight of each component in the total amount and the economies of scale involved in both its construction and installation.

How profitable is PV Manufacturing?

Broadly speaking, the PV manufacturing environment has been challenging in terms of overall profitability. Since 2010, gross margins have varied between 5% and 25%, while operating margins have varied between 15% and -15% (Feldman, O'Shaughnessy et al. 2020).

How do photovoltaic sales affect the supply chain?

The increase in the number of sales has a direct influence on the reduction of operating costs in the photovoltaic supply chain, which is a source of competitive advantage for the sector (Guerrero-Lemus et al., 2013, Jarach, 1989, Lee et al., 2012, Liu and Lin, 2019, Mauleón, 2019, Shuai et al., 2018, Sugandhavanija et al., 2011).

Which sector gets the highest profits in photovoltaic solar?

Concerning the global photovoltaic solar industry, the upstream sector gets the highest profits, as competition is relatively small, and the market tends to be oligopolistic (Liu and Lin, 2019). Upstream groups involve companies that have a high and specific technological level, with a high investment cost in the facilities.