March 9, 2006 4:00 AM PST
Solar industry chases a cheaper kilowatt
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Solar equipment manufacturers have been chasing the same goal for decades: producing a cheaper kilowatt of electricity. Now, after years of unfulfilled hopes, experts say that the solar picture is finally improving.
New technology is being developed in solar photovoltaic (PV) systems. And, more important, investors seem to be taking the advice of none other than Thomas Edison, the legendary inventor who famously exclaimed: "I'd put my money on the sun and solar energy."
Many decades later, venture capitalists are heeding that call.
"Conditions have never been better because electricity prices are going up. The basic challenges with solar energy haven't gone away (since the 1970s) but clearly advances in material science, the economic conditions we're facing, and environmental mandates are all making solar much more attractive," said William Lese, managing director of venture capital firm Braemar Energy Ventures.
The surge in venture capital activity dovetails with the growing interest overall in so-called clean technologies. "It's not like the Internet boom of the late 1990s, but there's a clear understanding that this is a market that is about to take off," said Steve Chadima, chief marketing officer at Energy Innovations, a manufacturer of energy systems spun off from incubator Idealab.
Although still a fraction of overall energy industry, use of solar PV goods--products that convert light to electricity--saw rapid growth last year. The total market, which includes components and installation services, grew more than 50 percent in 2005, according to Clean Edge, a clean energy research firm.
Brighter economic prospects for clean energy have set off a race to manufacture more efficient solar panels, which will improve the cost per kilowatt for consumers. Solar PV systems are still substantially more expensive than purchasing electricity generated from fossil fuels or nuclear power, according to industry experts.
The high cost of silicon, the material that converts light to electricity in most solar panels today, is one of the biggest barriers to lowering the cost of solar PV systems, said solar company executives.
"The industry is capacity constrained for the foreseeable future," said Richard Chleboski, vice president of worldwide expansion at Evergreen Solar, who spoke at a recent Piper Jaffray conference on the solar industry. "Technology is really key in this industry because it's a necessary component to create cost reductions."
Going beyond silicon
Established solar providers are betting that increased silicon capacity and improved manufacturing will make solar electricity more affordable and stoke more demand. But several smaller companies are taking widely varying routes with the same goal in mind.
Many companies are investing in advanced manufacturing techniques that cut down on the amount of silicon required to make a panel. Evergreen Solar, for example, has devised a "string ribbon" production method which it says reduces silicon waste and boosts the efficiency of panels, thus lowering the overall system costs.
Silicon-based solar panels dominate the market. But several smaller companies are challenging the incumbents with solar cells built from materials other than silicon.
Start-ups Miasole, Nanosolar and DayStar Technologies are using so-called thin film solar cell processing and nanotechnology in an effort to boost efficiency and lower costs.
"There are questions marks around the type of efficiency (thin film technology) can get and the longevity of the cells. But these companies are moving forward rapidly, beyond the R&D stage and into production," said Ron Pernick, principal of Clean Edge.
Another approach is solar concentrators, where solar panels are equipped with mirrors to focus the sun rays on a photovoltaic cell to make them more productive at creating electricity. These products could be used to supplement the power of a large warehouse or retail outlet, for example.
Energy Innovations, SolFocus, Solaria and Pacific SolarTech are working on concentrators. These systems are being pilot-tested, and the companies are expected to commercialize their products over the next year.
Another notable nonsilicon solar company is Stirling Energy Systems. It is constructing huge farms of mirrored dishes in the California desert to generate electricity. It expects to deliver on its contracts to build facilities that generate hundreds of megawatts of power in late 2008, said Stirling CEO Bruce Osborn.
Konarka, which recently raised an additional $20 million in venture funding, is pursuing organic photovoltaics, where solar cells are made from plastics.
Although still in development, this process of "printing" organic solar cells results in flexible strips which can be used for a wide range of applications, from solar-powered cell phones to portable Army structures covered in photovoltaic material, according to the company.
"If you want to dramatically lower the price of PV, it's not about scavenging the last piece of silicon. It's about changing the manufacturing process," Konarka CEO Howard Berke said at the Piper Jaffray conference earlier this month.
See more CNET content tagged:
photovoltaics,
solar energy,
electricity,
silicon,
venture capital
However, one should keep in mind that 10 Megawatts (shown in one of the pictures here) is still too low compared to other power generation plants (which often generate a few hundred or even over a thousand megawatts of power)
I guess the key here would be using this technology to produce power in your own backyard. That way, we'd (hopefully) be able to produce enough power for ourselves and (hopefully) cut the costs down.
I also think that more and more people and companies should be made aware of this opportunity. If a good number of homes/companies install them, more and more people would start installing them as it would work out as social marketing.
That's just my 2 cents though.
Mahurshi Akilla
They use the durable and rugged panels from Unisolar, and bond them directly to their roofing membranes for a 25 year warranty roof that produces electricity from early morning to evening. The Unisolar panels do not use crystalline silicone, so are immune from the shortage, and are made by the mile on a stainless steel substrate.
Del
Any ideas?
enthusiastic supporters of widespread solar energy
developments if I asked for some cost and production numbers?
How much power can a roof sized solar system produce at its
peak?
How much power does the building underneath the solar system
need?
How long will the solar panel operate?
How often does the system need maintenance in order to keep
its output within advertised capabilities?
How much does it cost to clean?
How large are the taxpayer costs per unit of delivered power in
subsidies?
How much do electric utility customers pay for the mandated
uses of the technology?
I have been reading about solar breakthroughs since 1973. Little
has changed except for the cost of the competition and the
quantity of dollars flowing from taxpayers and monopoly utility
companies.
I believe that there is a very good reason why BP spends a tiny
portion of its annual revenue on solar energy and then spends
even more promoting its resulting image as a company that is
"beyond petroleum".
enthusiastic supporters of widespread solar energy
developments if I asked for some cost and production numbers?
How much power can a roof sized solar system produce at its
peak?
How much power does the building underneath the solar system
need?
How long will the solar panel operate?
How often does the system need maintenance in order to keep
its output within advertised capabilities?
How much does it cost to clean?
How large are the taxpayer costs per unit of delivered power in
subsidies?
How much do electric utility customers pay for the mandated
uses of the technology?
I have been reading about solar breakthroughs since 1973. Little
has changed except for the cost of the competition and the
quantity of dollars flowing from taxpayers and monopoly utility
companies.
I believe that there is a very good reason why BP spends a tiny
portion of its annual revenue on solar energy and then spends
even more promoting its resulting image as a company that is
"beyond petroleum".
Go Ostriches!
owlafaye
949.722.8704. You can also watch the video featuring Morgan
Freeman and Ed Bagel jr, at this url
www.jointhesolution.com/kevinbirch
WHAT A HUGE WASTE OF MONEY ALL BECAUSE ENVIROMENTALISTS CAN NOT ADMIT THEY WERE WRONG ABOUT NUCLEAR POWER. Even the French figured it out.
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by JRJHOME
June 14, 2008 3:28 PM PDT
- I am living in a place that cost .50 cents a kilowatt!!! New energy solutions need to be made affordable so people can switch from using the utility companies.. I do a lot of research but the utility company is still cheaper per kilowatt, than me investing in products that cost a small fortune. I don't plan on being here long time but I would make purchase's that would lower my kilowatt usage.
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