Strategic Insights Report: EVA and Backsheet for solar panels

INDEX

Executive Summary
Introduction to EVA & Backsheets
Technical Differentiation
Why this Segment Matters?
Global & Indian Market Landscape
Demand Drivers
Technology Landscape
Cost Structure & Unit Economics
Competitive Landscape
Risks & Mitigation
Call to Action

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EXECUTIVE SUMMARY

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INTRODUCTION TO EVA & BACKSHEETS

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TECHNICAL DIFFERENTIATION

Aspect	EVA (Encapsulant)	Backsheet
Position	Inside the module – wraps around the solar cells	Rear outer layer of the panel
Function	Binds cells to glass, protects from moisture and shocks	Provides insulation, UV & weather protection
Material	Ethylene-Vinyl Acetate (with additives for curing/stability)	Multi-layer: PET/PVDF/TPT or fluorine-free polymer structures
Transparency	High – must allow >90% light transmission	Opaque or reflective, sometimes transparent (for bifacial)
Thermal Role	Undergoes cross linking during lamination (cures with heat)	Remains stable under temperature variation
Failure Risks	Delamination, yellowing, acetic acid release	Cracking, chalking, loss of adhesion, moisture ingress

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WHY THIS SEGMENT MATTERS?

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GLOBAL & INDIAN MARKET LANDSCAPE

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DEMAND DRIVERS

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EVA ENCAPSULANTS

Type	Key Features	Benefits	Use Case
Standard EVA	~28–33% Vinyl Acetate, thermal crosslinking during lamination	Cost-effective, reliable	Mono PERC, standard modules
UV-Cut EVA	Absorbs UV rays, reduces yellowing and degradation of backsheet	Enhances long-term optical stability	Modules in high-UV regions
Fast-Cure EVA	Crosslinks faster (shorter lamination cycle)	Higher throughput, reduced process time	High-volume manufacturing lines
EVA + POE Hybrid	Blend of EVA and Polyolefin Elastomer	Better PID resistance, low moisture ingress	Bifacial & TOPCon modules
High-Transparency EVA	Increased light transmission (>91%) with better optical clarity	Higher efficiency output	Bifacial & high-efficiency modules

TECHNOLOGY LANDSCAPE

BACKSHEETS

Type	Key Features	Benefits	Use Case
TPT (Tedlar–PET–Tedlar)	Fluoropolymer outer layers with PET core; durable	Best UV/weather resistance, long field life	Utility-scale & high-reliability modules
PET-Based (Standard)	PET core with coatings	Economical, easy to laminate	Mass-produced modules
PVDF-Coated Backsheet	PVDF layer + PET; strong adhesion, good UV resistance	Enhanced durability over plain PET	Indian and Southeast Asian markets
Fluorine-Free Backsheet	Fully recyclable; no fluoropolymers	Eco-friendly, ALMM-compliant	ESG-focused developers, green buildings
Transparent Backsheet	Allows sunlight to enter from rear side	Enables bifacial output, reduces LCOE	Bifacial modules, agrivoltaics
Co-extruded Backsheet	Single-step extrusion of all layers	Lower defects, reduced delamination risk	Automation-driven high-capacity plants

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COST STRUCTURE

EVA Encapsulant

Component	Cost (₹/kg)	% of Total	Details
Raw Materials (VAM, additives)	₹115–130	~65%	Vinyl acetate monomer, stabilizers, UV blockers
Compounding & Extrusion	₹25–30	~15%	Film formation, calendaring, thickness control
Packaging & Logistics	₹10–15	~8%	Roll storage, bulk transport
Overheads & Utilities	₹10–12	~7%	Energy, labor, plant maintenance
Profit Margin (before tax)	₹10–15	~5%	Can scale with capacity & automation

Total Cost : ₹170 – 200/kg → ₹12 – 14/sqm

Sale price in India: ₹220 – 250/kg → Gross Margin ~20-25%

Component	Cost (₹/sqm)	% of Total	Details
PET / PVDF / Fluoropolymer	₹30–35	~50%	Outer/inner films, adhesives
Coating / Lamination	₹10–15	~20%	UV, moisture barriers, insulation layers
Machinery & Energy	₹6–8	~12%	Film handling, line-speed, temperature control
QC, Packaging & Wastage	₹4–5	~8%	Multi-roll QC, scrap loss
Profit Margin	₹4–6	~10%	Dependent on scale & buyer contract

Total Cost : ₹55 – 65 / sqm

Sale Price in India : ₹70 – 85 / sqm → Gross Margin ~15 – 20%

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UNIT ECONOMICS

Metric	EVA	Backsheet
CapEx (10,000 TPA / 10M sqm/year)	₹60–70 Cr	₹45–50 Cr
O&M per year	₹12–15 Cr	₹8–10 Cr
EBITDA Margins	18–25%	15–20%
Payback Period	~3.5–4 years	~4–4.5 years
IRR (Post-tax)	18–22%	16–20%

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COMPETITIVE LANDSCAPE

Investor	Technology	Investment	Capacity	Location
RenewSys	EVA, POE encapsulant & backsheets	(multiple expansions; part of ₹6000 Cr broader module investment)	30 GW encapsulant, 4 GW backsheet	Bengaluru, Maharashtra, Hyderabad
Grew Energy (Chiripal Group)	EVA sheets & solar glass	₹567 Cr PLI incentive	Modules: 2.8 GW; planned EVA/backsheets plant	Jaipur, Rajasthan; Dholera
Navitas Alpha Renewables	EVA encapsulant films	₹70 M seed round (~₹7 Cr)	0.6 GW/year	Hojiwala, Surat, Gujarat
Knack Energy	EVA, POE, backsheets; module Mfg	Not disclosed	Module: 0.8 GW initial; +1.2 GW planned	Gujarat (likely Surat region)
Vishakha Renewables	PET/PVDF backsheets	Not disclosed	6 GW backsheets, 6 GW encapsulant	Not specified

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RISKS

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MITIGATION

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MOVING FORWARD

Capitalize on India’s push for solar localization by entering a segment with >₹1,000 Cr annual import substitution potential
Partner with module manufacturers seeking reliable domestic EVA and backsheet suppliers under ALMM and PLI mandates
Invest early in backward integration to gain cost leadership and secure long-term offtake contracts
Leverage green product innovation (fluorine-free backsheets, POE blends) to tap premium ESG-conscious customers
Establish manufacturing units in policy-friendly states like Gujarat or Telangana to benefit from state subsidies and infra
Align with India’s 500 GW clean energy target by becoming a critical supply chain enabler in the solar ecosystem

Wish to have industry or market research support from specialists for climate & environment? Talk to EAI team – Call Muthu at +91-9952910083 or send a note to consult@eai.in

India EVA & Backsheet for Solar Panels Strategy for the CEO – Market Size, Project Costs, Technology, Policies