Introduction to Solar Energy

Technologies and Companies

For Strategy Managers, Investors & Entrepreneurs

Two main ways to harness Solar Power

• Concentrated Solar Power Technology – Solar energy is concentrated and used to produce thermal energy. – Thermal energy is then converted to electricity.

• Photovoltaic (PV) Technology – Electricity is produced directly from solar radiation.

• Concentrated Solar Power Technology – Solar energy is concentrated and used to produce thermal energy. – Thermal energy is then converted to electricity.

• Photovoltaic (PV) Technology – Electricity is produced directly from solar radiation.

Two ways to harness solar power

Solar Power is concentrated and converted to thermal energy which is converted to electric energy

P N P N

Solar Power is converted to electricity using PV (Photovoltaic) effect

How do PhotoVoltaics work? How is electricity generated?

When light shines on a PV cell, the energy of the absorbed light is transferred to electrons in the atoms of the PV cell.

These electrons escape from their normal positions in the atoms of the semiconductor PV material and become part of the electrical flow, or current, in an electrical circuit.

This is called the photoelectric effect.

What is a PV cell?

A PV cell consists of two thin layers of semi-conducting material. Each layer is "doped" or infused with a small amount of another material. One layer is doped (usually with phosphorus) so that it has slightly too many electrons. This is the “n-layer”. The other layer is doped (usually with boron) so that it has slightly too few electrons. This is the “p-type” layer.

This difference produces a small electric field between the two layers, which gives the “escaped” electrons (from the photoelectric effect) a direction to flow when they get knocked out of place.

Source: Abengoa Website

Silicon has been the traditional semiconductor used in PV applications

PV Efficiency

• Bandgap Energy– Amount of energy required to dislodge an electron. – The PV material bandgap energy is tuned to convert as much sunlight as

possible into electricity.– Crystalline silicon has a bandgap energy of 1.1 electron-volts (eV). – Bandgap energies of other PV semiconductors range from 1.0 to 1.6 eV.

• Other ways to increase PV efficiences:– Using multiple p/n junctions (multi-junction cells)– Use antireflective coating to capture as much light as possible.– Maximize the photons that are absorbed in the p-layer. – Minimize the electrons from meeting up with holes and recombining with

them before they can escape from the PV cell.

• Bandgap Energy– Amount of energy required to dislodge an electron. – The PV material bandgap energy is tuned to convert as much sunlight as

possible into electricity.– Crystalline silicon has a bandgap energy of 1.1 electron-volts (eV). – Bandgap energies of other PV semiconductors range from 1.0 to 1.6 eV.

• Other ways to increase PV efficiences:– Using multiple p/n junctions (multi-junction cells)– Use antireflective coating to capture as much light as possible.– Maximize the photons that are absorbed in the p-layer. – Minimize the electrons from meeting up with holes and recombining with

them before they can escape from the PV cell.

Semi Conductors used in PV Cells

• Crystalline Silicon - most common (1st generation) • Involves sawing wafers (~200 µm) from ingots– Single-Crystalline Si: highly purified silicon– Poly-Crystalline Si: silicon is of less purity– Ribbon Si: grown from molten silicon instead of an ingot.

• Thin film material (< 5 µm) – 2nd generation– The advantages are light weight and low cost and that they can be deposited

over large areas by chemical vapor deposition.

• Third Generation. Current research ongoing: – dye-sensitized titania solar cells – organic photovoltaics – Solar tandem cells– and …

• Crystalline Silicon - most common (1st generation) • Involves sawing wafers (~200 µm) from ingots– Single-Crystalline Si: highly purified silicon– Poly-Crystalline Si: silicon is of less purity– Ribbon Si: grown from molten silicon instead of an ingot.

• Thin film material (< 5 µm) – 2nd generation– The advantages are light weight and low cost and that they can be deposited

over large areas by chemical vapor deposition.

• Third Generation. Current research ongoing: – dye-sensitized titania solar cells – organic photovoltaics – Solar tandem cells– and …

Silicon PV: Value Chain

Solar ModulesSolar Cells Silicon Ingot Silicon Wafers

This part of the chain is Oligopolistic. Increase in the poly-silicon prices (200% in 2 years) has been a key issue in the industry.

Thin film PV material (2nd Generation PV)

A-Si CIGS (TeCd) Micro Si Titanium dioxide (TiO2)

Amorphous SiliconNon –crystalline allotropic from of silicon

Copper Indium gallium (di) selenide

Cadmium Telluride

Absorbs light more effectively than crystalline silicon.

The band gap energy can be tuned between 1.1 eV and 1.75 eV.

a-Si can also be deposited on plastic and stainless substrates (not only glass)Lowering costs and increasing flexibility and durability.

Absorbs light very effectively. The band gap can be tuned between 1.02 eV and 1.68 eV.

High efficiency and low material cost are the key advantages.

The drawbacks are complicated and capital intensive manufacturing methods.

Diverse manufacturing techniques are available for large scale production.

Drawbacks are cost and potential health concerns.

Reported high efficiencies and negligible degradation.

Use a dye-impregnated layer of titanium dioxide to generate voltage. Cost is the key advantage.

Concentrating Solar

• Focussing sunlight into a beam • Uses lenses or mirrors and tracking systems.• Key technology issues:

– Parabolic Trough – Tower

• Two key ways to use:– Generate Electricity allowing sun beam to fall on a photovoltaic cell (CPV)– Generate Electricity/Heat thru the use of steam (CSP/Solar Heat)

• Focussing sunlight into a beam • Uses lenses or mirrors and tracking systems.• Key technology issues:

– Parabolic Trough – Tower

• Two key ways to use:– Generate Electricity allowing sun beam to fall on a photovoltaic cell (CPV)– Generate Electricity/Heat thru the use of steam (CSP/Solar Heat)

Concentrating Technology: Parabolic Trough

The main components of parabolic trough technology are:

The parabolic trough reflector: Reflects sunlight onto the receiver at the focal point. Typically, the reflector is made of thick glass silver mirrors formed into the shape of a parabola.

The receiver tube or heat collection element: Collects/Absorbs the solar energy.Consists of a metal absorber surrounded by a glass envelope.

The suntracking system: Tracks & focusses the reflector onto the sun.

The support structure: Holds the mirrors in accurate alignment and resistis the effects of the wind.

Source: Abengoa Site

Concentrating Technology: Tower

The main components of parabolic trough technology are:

Heliostats Capture solar radiation and direct it to the receiver. They are composed of a reflective surfaces (glass mirrors), a supporting structure and mechanisms used to orientate them, following the sun’s movement

The receiver Transfers received heat to an operating fluid (which could be water, molten salts, etc.). This fluid transmits heat to another part of the plant where steam is produced.

The tower Acts as support for the receiver which should be located at a certain height above the heliostats level to avoid, or at least reduce, shades and blockings.

Source: Abengoa Site

Concentrated Technology: Fresnel lens

• The lens is broken into a set of concentric annular sections. • This allows reduction in thickness (and thus weight and

volume of material) of the lens. • ….at the expense of reducing the imaging quality.

• The lens is broken into a set of concentric annular sections. • This allows reduction in thickness (and thus weight and

volume of material) of the lens. • ….at the expense of reducing the imaging quality.

Solar Technology Applications

• Utility-scale plants • Commercial Systems • Residential systems• Building Integrated Modules• Rural Electrifications

• Utility-scale plants • Commercial Systems • Residential systems• Building Integrated Modules• Rural Electrifications

May be either Off –grid/connected to grid

The Solar Map – Companies and Technologies

Concentrated Solar

CSP CPV

Building utility scale plantsUS: Ausra, Solar Reserve US/Israel: BrightSource:LuzII

Building Utility scale plantsUS: Energy Innovations, SolFocus, Green Volts

PV Traditional Silicon based Innovations on Silicon Thin Film & 3rd Gen.

Solar Cell ManufacturingJapan: Sharp, Sanyo, US: First Solar, SunPowerEurope: Qcells, REC SolarChina: SunTech,Solarfun

Reducing amount of siliconUS: OptiSolar, Evergreen Solar

Non silicon based PVUS: Opti Solar, Stion, Nano Solar, AvaSolar, SoloPower

Residential & Comercial Utility Rural

BIPV and Heating applicationsTypically smaller cos in respective markets US: Meridian Solar, Open Energy

Larger plantsUS: Solar Power, SunPowerEurope: Conergy,AbenGoa

Street lighting, lanterns, refrigeratorIndia: SELCOUS/India: Promethean

Smaller financiers like Mondial Energy

Larger partners like GE Energy

Aryabhatt Gramin Bank,

Not featured subsequently in this analysis

PV: Cos in the Value Chain

Solar Module Maunufacture

Solar Cell Maunfacture

PolySilicon Manufacturers

Silicon Wafer Manufacturers

Dominated by large semi conductor cos.

Fragmented

Q Cells Sharp SolarKyocera BP SolarSunTech Motech….

Oligpolistic

Top 5 control 85% of market

FragmentedFragmentedConcentrated

Top 10 control 70% of market

Hemlock TokyuamaWacker ChemieRECMEMC

Shinetsu SUMCOWackerMEMCKomatsu

Solar System Developer

Localized

Top Solar PV cos.

Cos Location Capacity (MW) - 2007

Sharp Electronics Japan 725

Q Cells Germany 547

SunTech Power China 320

First Solar USA 317

SolarWorld Germany 280

Sanyo Japan 270

BP Solar UK 257

Kyocera Japan 250

Motech Taiwan 240

Solarfun China 240

SunPower USA 214

Source: CIOL

Chinese PV Manufacturers: Just a sample!

Yingli Canadian Solar

LDK Solar JA Solar SunTech Power

Solarfun

Business PV modules PV modulesSilicon reclaiming

Wafer PV Cells PV Modules Cells and modules

Capacity 200 MW 250 MW(2008)

580 MW (2008)

25 – plant under construction

540 MW 240 MW

Revenues (USD million) – FY 07

556 608 1.03 B NA 1.7 B 81

Location Near Beijing Ontario, Canada/Jiangsu

Jiangxi, China Sunnyvale, CA

Shanghai, ChinaMilipitas, CA

Jiangsu, China/SFO, USA

Jiangsu, China

Listed on NYSE NASDAQ NYSE NASDAQ NYSE NASDAQ

Integration (forward/backward)

16 000 MT Polysilicon manufacturie

Global expanstion in sales & service

Caveat: I have tried to collect this data from the site and annual reports. But I am not sure I have read all of the data off accurately!

Indian PV Manufacturers

Comany Moser Baer Photo Voltaic Limited Tata BP Solar

Business Cells and Modules Solar Products with a focus on developing cos applications (street lighting, heating systems, lanterns…)

Capacity 120 MW 180 MW

Revenues (USD million) – FY 07

Not Available Not available

Location New Delhi, India Bangalore

Investors Subsidiary of Moser Baer India Ltd JV between BP and Tatas

Management Ravi Khanna, CEO Syamal Gupta, Chairman , K.Subramanya, CEO

Investments Solaria & Stion (Thin film technology), SolFocus (CPV)

-

Traditional PV- Innovative Manufacturing

Business Solaria Evergreen Solar

Technology Proprietary manufacturing process to reduce the amount of silicon required in cells.

Proprietary String Ribbon TM manufacturing technology to reduce the amount of polysilicon

Investors Sigma Partners, NGen Partners, Q Cells, Moser Baer,

Total Investment Amount

USD 77 million over three rounds NASDAQ (ESLR) – 2007 revenues (including EverQ) was USD 252 million

Management Suvi Sharma (CEO), Leslie Danziger (Founder), Alelie Funcell (COO)

Richard M. Feldt (President & CEO), Rodolfo Archbold (VP – Operations)

Location Fremont, CA /manufacturing in Phillipines Marlbaro, MA/production in Germany thru EverQ a JV between Q Cells AG, Renewable Energy Corp ASA and Evergreen

Commercial Systems Range

Minimum power output 50kW/ 1 MW plant under construction

3-100kW

Thinfilm & 3rd Generation PVOptiSolar Stion Corporation NanoSolar

Business/Products Panel Manufacturer/Solar Plant Operator

Module manufacturer Panel Manufacturer

Technology Thin film amorphous silicon panels

High efficiency thin film modules based on the work of Howard Lee

Manufacturing innovations: 1) semiconductor ink 2)roll printing 3) conductive substrate. Uses CIGS.

Investors Not Disclosed Khosla Ventures, Braemar Energy Ventures, Moser Baer Photovoltaic , Lightspeed Venture Partners, General Catalyst Partners

VCs (Benchmark Capital, MDV), Corporations (AES, EDF, Energy Capital Partners, Swiss Re, Riverstone Capital, Mitsui), Founders of Google, eBay, SAP

Total Investment Amount

Not Discolosed USD 15 million in Series B USD 300 million

Management Randy Goldstein (CEO), Marv Keshner (Chief Scientist)

Chet Farris (President & CEO), Vineet Dharmadhikari (SVP – Eng, COO)

Martin Roscheisen (CEO), Brian Sager (VP – Corporate Development)

Location Hayward, CA/manufacturing in Phillipines

San Jose, CA San Jose, CA

Thinfilm PV & 3rd Generation PV….contdAva Solar SoloPower Konarka Technologies

Business/Products Modules Cells and Modules Modules

Technology Cadmium telluride (CdTe) thin-film technology

Copper-Indium-Gallium-Selenide (CIGS) thin film technology.

Polymer-based, organic photovoltaic (OPV) technology

Investors Invus LP, DCM, Technology Partners, GLG Partners, Bohemian Companies, LLC

Crosslink Capital , Firsthand Capital Management, Convexa Capital and Alf Bjørseth, co-founder of REC Group.

3i, Draper Fisher Jurvetson, New Enterprise Associates, Good Energies, Vanguard Ventures, Partech International , Chevron Technology Ventures, Asenqua Ventures, Massachusetts Green Energy Fund, NGEN Partners and Angeleno Group

Total Investment Amount

USD 104+ million USD 30 million in second round

USD 125 million in multiple rounds (since 2001)

Management Dr. Pascal Noronha, CEO of AVA Solar, Dr. Neil Morris (Sr. VP Engineering)

Homayoun Talieh, CEO, President , Dr. Bulent Basol, CTO, Dr. Jay Ashjaee, Vice President of Engineering

Howard Berke (Founder), Rick Hess (CEO), Dr. Christoph Brabec (CTO)

Location Fort Collins, CO San Jose, CA Nuremberg, Germany

Thinfilm PV & 3rd Generation PV….contdSolyndra United Solar Ovonics Oerlikon Solar

Business/Products Roof Top Modules (BIPV)

Roof Top Modules (BIPV)

Technology CIGS thin film PV cells in glass sealed cylindrical modules

Triple junction thin film a– si technology

A-Si and micromorph solar cells with ability to absorb infra red as well as visible light

Investors Artis, Argonaut Private Equity, CMEA Ventures, Rockport Capital, US Venture partners, Masdar , Madrone Capital Partners, Redpoint Ventures

Subsidiary of Energy Conversion Devices (NADAQ:ENER)

Business Unit of the Oerlikon Group

Total Investment Amount

USD 600 million (!!!!) _ _

Management Dr. Chris Gronet (CEO),

Mark Morelli, CEO, Subhendu Guha (Chairman and SVP, ECD)

Location Fremont, CA Michigan, USA Switzerland

Thin Film based Utility Scale Plants

Project Name (all OptiSolar)

Operator Plant Location Utility Capacity Status/Expected

Topaz Opti Solar San Luis Obispo County, CA

PG&E 550 MW In the 2011-2013 time

Sarnia Opti Solar Ontario, Canada Ontario Power Authority

6*10 MW 2010

Tilbury Opti Solar Ontario, Canada Ontario Power Authority

2*10MW 2010

Petrolia Opti Solar Ontario, Canada Ontario Power Authority

1*10MW 2010

CSPSolar Reserve Ausra BrightSource/Luz II

Technology CSP with Power Towers and molten salt storage

Compact Linear Fresnel Reflector

CSP

Investors Citi Alternate Investments, Sustainable Development Initiatives, Good Energies, US Renewables Group, PCG CETF, Argonaut Private Equity, Nimes Capital Credit Suisse

Khosla Ventures and Kleiner Perkins Caufield & Byers, Starfish Ventures (Australia), Generation Investment Management (London) and KERN Partners, Canada

VantagePoint Venture Partners, BP Alternate Energy, Google.org, MorganStanley, DFJ, Chevron Technology Ventures, StatOil Hydro Venture, Black River

Investment Amount

USD 280 million in two rounds USD 100 million over two rounds

USD 160 million over 3 rounds

Management Terry Murphy (CEO), Kevin Smith (COO), William R. Gould (CTO)

Robert E Fishman (President, CEO & Chairman) , Dr David Mills (Chief Scientific Officer and Founder)

John Woolard (CEO – Brightsource)Arnold Goldman (Chairman – Brightsource)Israel Kroizer – President LuzII

Location Santa Monica, CA Palo Alto, CA BrightSource – Oakland, CALuzII – Isreal

Plant Details Not Available Bakersfield, CA 5 MW –under constructionCarrizo Plains : 177 MW with PG&E – under plan

Negev Desert, Israel – 20 MW (completed)Ivanpah, California - 500 MW (first phase 100 MW to come up in 2011)

CSP…contdeSolar

Technology CSP plants with dual axis heliostat mirrors, pre-fab technology and modular construction.

Investors Google.org, Oak Investment Partners, IdeaLab

Investment Amount USD 110 million in one round

Management Asif Ansari (CEO),

Location Pasadena, CA

Plant Details 245 MW plant in Antelope Valley, California

Concentrated PVEnergy Innovations SolFocus Green Volts

Technology Tight integration of High efficiency triple-junction cells, proprietary Fresnel lens and tracking system.

Multi –junction solar cells and the optical design of the concentrator

2 Axis solar tracker. Allows plants to be built near communities, saving n transmission lines.

Investors IdeaLab, MDV-Mohr Davidow Ventures

New Enterprise Associates (NEA), Moser Baer, Metasystem Group, NGEN Partners, Yellowstone Capital, David Gelbaum

Avista Corporation, Greenlight Energy Resources, Oak Investment Partners

Total Investment Amount

USD 15 million in Series B USD 92 million since 2005 USD 40 million in 2 rounds

Management Bill Gross (Founder & CEO), Mark Henderson, Gregg Bone

Gary D. Conley (CEO & Chairman), Mark Crowley (President)

Bob Cart (Chairman & CE0), Birute Adams (COO)

Location Pasadena, CA Mt. View, CA/Europe – Spain/Moser-Baer manufacturing partner

SFO, CA

Plants Minimum power output 50kW/ 1 MW plant under construction – commercial systems shipping in 2009

200 KW installed in Spain/Plants of 3 MW & 10 MW in progress (Spain)

2 MW plant under construction.

Solar Plant Operator – US (a sample) Solar Power Partners SunPower Corp Solel

Technology Works across all solar energies Manufactures and installs: Technology USPs: 1. High efficiency panels 2. Single axis solar tracker

CSP & Concentrated PV

Investors United Commercial Bank, Globespan Capital Partners, the Enlightened World Foundation, Carrelton Asset Management, Dry Creek Ventures, Silicon Valley Technology Group, Energy Investors Fund

Listed on NASDAQ (SPWRA and SPWRB)

Not Available

Total Investment Amount

USD 160 million of equity, debt and project finance

NA Not Available

Management Alexander v. Welczeck (President & CEO), Hugh Kuhn (VP – Operations & Technology)

Thomas Werner (CEO), Marty T Neese (COO), Surinder S Bedi (VP-Quality), Thomas Dinwoodie , Founder

Not Available

Location Mill Valley, CAs San Jose , CA/manufacturing in Phillipines

Israel and US

Commercial Systems Range

37 kW – 2 MW (about 15 projects completed till date)

200KW to 3 MW Solar cooling/heating – 2-3MW

Solar Plant Operator - Europe

Company AbenGoa Conergy AG

Focus on Solar PV Also finances and operates projects in other renewable energies

Technology R&D in both CSP, Photovoltaic systems & Storage

Management Santiago Seage (Chairman & CEO), Pedro Robles Sánchez (MD-Spain), Scott Frier (COO – USA)

Dieter Ammer (CEO), Nikolaus Krane (project business )

HeadQuarters Spain/operations across the world Germany/operations across world

Commercial Systems Range

Solar Heat – 2-3MWCSP – 20MW

Utility Level Plants…samplePlant Location Operator Capacity SolarPark

areaFinancing partner

Status/Expected

Bavaria, Germany

SunPower 10 MW 100 acres Deutshe Structured Finance

110% util in last 2 yrs

Serpa, Portugal SunPower 11MW 130 acres GE Energy Financial Services

102% in last two areas

Air Force Base, Las Vegas

SunPower 14MW 140 acres NA

Plant Location Operator Capacity Technology Status/Expected

Mojave Desert, California

Solel 553 MW CSP Construction On

Lebrija, Andalusia, Spain

Solel 3*50 MW CSP & PV Construction On

Utility Level Plants …sample

Plant Location Operator Capacity Land Technology Status/Expected

Phoenix, Arizona

Abengoa 280 MW 100 acres

CSP Construction On

Sanlucar la Mayor, Spain

Abengoa 300 MW 1600 acres

CSP & PV 16 MW commissioned/rest 2013

Pennsylvania Conergy 3 MW 16 acres PV Commissioned

South Korea Conergy 25 MW 144 acres

PV 20 MW commissioned

Bavaria, Germany

Conergy 6 MW Thin film Commissioned

Rural Applications

Promethean Power Systems SELCO

Business/Products

Solar Power Refrigerator Solar Lighting and Solar Heating. Finances the products too.

Innovation Innovations that allow solar power to be used for thermoelectric cooling (when a current is passed through a circuit of two dissimilar conductors, there will be a rise or fall in temperature at the junction depending on the direction of the current flow).

In the application space:Silkworm farmers Street Hawkers

Investors Quercus Trust

Investment Amount

Undisclosed

Management Sorin Grama, Sam White Dr H Harish Hande

Location Cambridge, CA with field trials in India Bangalore

System Power Range

Summary: The Solar Map – Trends & Opportunities

Concentrated Solar

CSP CPV

Plants are still under constructionNew Plants may not come up till 2010Costs will come down depending on which technology works

PV Traditional Silicon based Innovations on Silicon Thin Film & 3rd Gen.

Solar Cell Manufacturers are all sold out for the next two years Developments in PV technology is expected to bring down costs to grid parity levels

Residential & Comercial Utility Rural

This market will grow with consumer awareness and government subsidies

Plants are still under construction.Scalability yet to be proved.

This market is likely to grow quickly as often there is no alternate power if infrastructure (incl. financing) is made available.

License

• Author: Sanjoy Sanyal (sanjoysanyal@gmail.com) • Attributions:

– Specific diagrams and tables have been attributed to their source – For all cos. specific information I have largely depended on website material – For all industry data :Wikipedia and the US DOE site on Renewable energy

• Copyright (c) 2008 Sanjoy Sanyal. Permission is granted to copy, distribute and/or modify this document under the terms of the GNU Free Documentation License, Version 1.3 or any later version published by the Free Software Foundation; with no Invariant Sections, no Front-Cover Texts, and no Back-Cover Texts. A copy of the license is included in the section entitled "GNU Free Documentation License".

• Author: Sanjoy Sanyal (sanjoysanyal@gmail.com) • Attributions:

– Specific diagrams and tables have been attributed to their source – For all cos. specific information I have largely depended on website material – For all industry data :Wikipedia and the US DOE site on Renewable energy

• Copyright (c) 2008 Sanjoy Sanyal. Permission is granted to copy, distribute and/or modify this document under the terms of the GNU Free Documentation License, Version 1.3 or any later version published by the Free Software Foundation; with no Invariant Sections, no Front-Cover Texts, and no Back-Cover Texts. A copy of the license is included in the section entitled "GNU Free Documentation License".