The Business and Technology of the Solar Industry

Solar Subgroup of the Clean Tech Forum

June 9, 2009

Solar• Industry Overview

– Major technologies - Ari– Manufacturing process & challenges: quality & reliability

John– Solar Value Chain John– Installations – residential Stacy– Future System building and building integration Stacy

• Industry Funding -- follow the money! Keith– Government and VC funding– Residential example

• Careers Ari– Career paths (sample job description)– What you might need

Alternative Energy Industry Overview

Solar PV Technologies

Solar EfficiencyE

ffic

ienc

y

Technological ComparisonTechnology Advantage Disadvantage

c-Si High efficiencyAbundance of material

High cost to manufacture High cost of materials

a-Si Low costAbundant and safe material

Low efficiencyDegrades with temperature increase

CIGS High efficiencyLow costBandgap tunability

Scarcity of IndiumCd is toxicReliability has not been tested

CdTe Low cost Te is scarceCd is toxic

Concentrating solar

High efficiency Low cost

Takes up a lot of roomTransmission of energy over long distances

Solar• Industry Overview

– Major technologies - Ari– Manufacturing process & challenges: quality & reliability

John– Solar Value Chain John– Installations – residential Stacy– Future System building and building integration Stacy

• Industry Funding -- follow the money! Keith– Government and VC funding– Residential example

• Careers Ari– Career paths (sample job description)– What you might need

Silicon Solar Cell Manufacturing Flow

Monocrystalline Si Cell

Amorphous Si Cell

Amorphous Si & Microcrystalline Cell

Thin Film Cell Construct• Cadmium Telluride/Cadmium Sulfide Cell• Copper Indium Selenide • Copper Indium Gallium Selenide

Thin Film Solar Cell Manufacturing Process

Resulting Structure

TCO contact

Process Step Technology Used

TCO Deposition, Front and Scribing

Active Layer Deposition

Activation

Scribing and TCO Deposition, Back

Interconnect and Encapsulation

Sputtering and Laser

Co-evaporation or Sputtering or Ink Jet Printing or Electro

deposition

Chemical Bath or PVD (Phys Vapor Dep)

Mechanical and Sputtering

Lamination

Annealing & Sulfurization or RTA

CdS Deposition

Substrate

Substrate

Substrate

Substrate

Substrate

Substrate

Active layer

Sulfurization

CdS layer

Interconnect

Examples of Final Products

Single Crystal Solar Cell-i.e. Sunpower Polycrystalline Solar

Cell-i.e. Q-Cell

Flexible thin film cell

Thin film cell

Solar cell lamp picture

Solar Cell Application

Product Evaluation Solar Simulator

Radiation of 5 – 10 suns

Solar Cell is exposed

Its Current/Voltage is measured

Cells classified according to output efficiency

Cells then matched together to form module

.

• Poly-Si Feedstock 10%• Ingot/Wafer Production 10%• Cell Production 25%• Module Assembly 25%• System Integration, Distribution and Installation 30%

Wafer Based PV Value Chain

• Glass Production 20%• Cell Production (CdTe, CIS) 20%• Module Assembly 25%• System Integration, Distribution and Installation 35%

Thin Film Based PV Value Chain

Job Distribution in Solar Companies

Solar• Industry Overview

– Major technologies - Ari– Manufacturing process & challenges: quality & reliability

John– Solar Value Chain John– Installations – residential Stacy– Future System building and building integration Stacy

• Industry Funding -- follow the money! Keith– Government and VC funding– Residential example

• Careers Ari– Career paths (sample job description)– What you might need

Case Study

• Residential Solar installation• 2000 square foot house• 3.5 KW system

Comparative Sample Calculation• Demographics

– Home with 2000 square feet• Partitioned into living quarters for one familyAnd 2 separate master bedrooms for single occupants• No air conditioning• Composite roof• Facing south west, plenty of sunlight, no shading• Plenty of roof space for solar panels

• Comparing Sharp, First Solar, BP Solar and Sunpower PV panel based installations • Simple calc, only used the expected AC savings, expected AC cost increases (at 2% and

5% per year rate assumptions), panel degradation and net of tax rebate costs used.• NOTE: Assumes CLEAN dust free sap free panels• CAUTION: Sales person my use 9% AC cost increases per year other inflation rate items

and not take into account panel output degradation to show 2 or 3X the savings.• GOOD NEWS: up to 7600 pound of CO2 averted per year• These solar systems have 7 to 8 year to reach break even point and $28K to $45K savings

in 18 years (18 years is PPA life and may be the “half life” for the Silcon based panels.)

Comparative ROI Calculation

Panel Type, Supplier Sharp-PPA(leased system)

Sharp First Solar BP Solar SunPower

Cell Technology Std Eff Silicon Std Eff Silicon Thin Film CdS/CdTe

Std Eff Silicon Hi Energy Mono Silicon

Area used on roofSquare Feet

246 246 402 221 214

System Rating kWh 2.9 2.9 2.4 2.4 2.9

System Cost $4,194 and $107/mo $24,669 $20,439 $22,939 $28,148

Cost net Rebates $4,194 $14,103 $10,660 $13,566 $16,626

Panel DegradationIn years

20% in 25 yrs 20% in 25 yrs 10% at 10 years, 20% at 25 years

10% at 12 years, 20% at 25 years

20% in 25 years

Ave AC Bill Monthly Savings $152 $152 $100 $120 $150

BREAK EVEN POINT 7 Years 7 Years 8 Years 8 Years 8 Years

If 5% AC cost increase per year, savings at year 18

$13,196 $44,576 $28,454 $34,947 $43,843

Think SOLAR System Integration

• New Building Products– Walls– Windows– Roof systems– Lighting– Plumbing – Heating/Cooling– Flooring– Wall treatments– Window – shading– Siding

with Installation Systems

Beyond LEED ChallengeFor the Solar Community

System Analysis:

Think Beyond LEED StandardsInside as Outside EnvironmentExplore nature’s technologyDual, triple or quadruple solutionsRe-evaluate existing productsThink Beyond Building Integrated Photo Voltaics (BIPV)

Incorporate materials into “BEES”(Building Envelope Energy Systems) for:

Heating + VentilationPlumbingElectricity Lighting

Living Building Challenge Petals Expand on LEED* Current Standards *(Leadership in Energy & Environmental Design)

Manufacturing Considerations:

Banned Materials Red-ListFormaldehyde

Halogenated Flame Retardants:PBDE,TBBPA,HBCD, TCPP,Deca-BDE, TCEP and any with:Dechlorane Plus, Bromine or Chlorine

PVCMercuryCFC’sHCFC’s

Neoprene (chloroprene)CadmiumChlorinated Polyethylene Chlorosulfonated Polyethylene PolyurethaneLead Phthalates

Wood treatments containing:Creosote, Arsenic orPentachlorophenol

Several temporary exceptions for limited conditions: PVC in wiring - when code mandated Solder and off-grid solar battery Low-mercury fluorescent lighting systems only

Solar• Industry Overview

– Major technologies - Ari– Manufacturing process & challenges: quality & reliability

John– Solar Value Chain John– Installations – residential Stacy– Future System building and building integration Stacy

• Industry Funding -- follow the money! Keith– Government and VC funding– Residential example

• Careers Ari– Career paths (sample job description)– What you might need

Federal Funding and Rebates• Business: Grants for offsetting 30% of the cost of

installing a solar energy system– Instead of a tax credit– Large-scale solar plants, often developed to sell power to

utilities, also are eligible – Applies only to systems installed in 2009 and 2010 – Solyndra received $535M loan guarantee from DOE

• Residential: 30% tax credit– Energy Policy Act of 2005

California Solar Initiative (CSI)• Part of “Go Solar California” campaign

– $2.2B program – Rebates offered thru utilities (e.g. PG&E)

• Aug. 2004: Million Solar Roofs program– 3,000 MW goal

• Jan. 2006: CPUC collaborated with Energy Commission – Developed framework for CSI thru 2016

• Jan. 2007: New Solar Homes Partnership– Financial incentives & other support

VC Funding (Bay Area companies)

$M Company300 Nanosolar225 Solyndra132 OptiSolar115 BrightSource

Energy 75 Recurrent Energy 61 Ausra 52 Calisolar 48 SoloPower 47 Solar Power

Partners 30 GreenVolts

$M Company 29 Solar City 22 MiaSole 21 Cool Earth Solar 18 Solexant Corp. 18 Solar Junction 13 Twin Creek Tech 12 Sun Run 9 Stion Corp. 6 Tigo 3 Senergen1236 Total

Source: Thomson Financial, based on 2008 financing VC

Solar System Benefits Example• If annual electric usage = 10,000 kWh ($2,430/yr.)• 4,000 W system would lower cost to $464/yr.

Electric bill savings

Electric bill with solar system

Source: Sunwize Technologies, Inc.

Benefits of Solar System

Cost $32,000Federal/State Tax Credit1 $7,926State/Utility Rebate $5,580Net Cost $18,494 (42% savings)

Cumulative Lifetime Savings2 $93,813 over 25 years

1: Assumes uncapped residential tax credit which goes into effect January 1, 2009

2: CLS based on 5% annual electric bill escalation (~$49,000 if 0% escalation; 14.4% return)

Berkeley allows homeowners to borrow the cost of installation & pay annually

Source: Sunwize Technologies, Inc.

Solar• Industry Overview

– Major technologies - Ari– Manufacturing process & challenges: quality & reliability

John– Solar Value Chain John– Installations – residential Stacy– Future System building and building integration Stacy

• Industry Funding -- follow the money! Keith– Government and VC funding– Residential example

• Careers Ari– Career paths (sample job description)– What you might need

Career Options• Process Engineer

– Educational requirement: Typically advanced degree in Chemical Engineering, Materials Science, or other related engineering disciplines

– Experience with deposition techniques like CVD, and PVD

• Systems Engineer– Educational requirement: BS/MS in Electrical

Engineering– Understanding of control theory and power

systems

Career Options

• Many other jobs inlcluding SW engineers, Mechanical Engineers, Project Managers, etc…

• More detailed description of many jobs may be found at http://www.greenforall.org/resources/green-jobs-guidebook

Summary• Different technologies used for a variety of

applications– Large surface area may want lower cost/lower

efficiency, etc.

• Jobs will be found in variety of different segments of the solar industry– R&D, manufacturing, business operations

• Subsidies provide access to technology and incentive to buy– Success in Germany and Spain example of solar

technology flourishing

Examples of Thin Film Cells

Q-Cell

Q-CellQ-Cell

Q-Cell

Q-Cell

Thin Film PV Companies in US a-Si/Thin-Si CdTe CIGS

Applied Materials –CA First Solar –OH Global Solar –AZ

XsunX –CA Solar Fields –OH Miasole –CA

OptiSolar –CA Xunlight 26 Solar –OH ISET –CA

Signet Solar –CA Primestar Solar –CO Nanosolar –CA

Innovalight –CA AVA Solar –CO Solo Power –CA

Nanogram –CA Nuvo Solar Energy –CO Solyndra –CA

Soltaix –CA Canrom –NY Stion –CA

Sierra Solar Power –CA Ascentool –CA Energy PV –NJ

Uni-Solar –MI Solexant –CA RESI –NJ

Power Films –IA Bloom Solar –CA Ascent Solar –CO

Energy PV –NJ Zia Watt Solar –TX ITN/ES –CO

Nano PV –NJ Sunovia –FL Daystar –NY

MV Systems –CO NewCve –GA Heliovolt –TX

Proto Flex –CO Ampulse –TN

Comparative ROI Calculation

Panel Type, Supplier Sharp-PPA Sharp First Solar BP Solar SunPower

Model No. ND-198U1F ND-198U1F FS-276 BP175 SP2-210

Cell Technology Std Eff Silicon Std Eff Silicon Thin Film CdS/CdTe

Std Eff Silicon Hi Energy Mono Silicon

Area used on roofSquare Feet

246 246 402 221 214

System Rating CEC AC KWh

2.9 2.9 2.4 2.4 2.9

System Cost $4,194 and $107/mo $24,669 $20,439 $22,939 $28,148

Cost net Rebates $4,194 $14,103 $10,660 $13,566 $16,626

Panel DegradationIn years

80% in 25 yrs 80% in 25 yrs 90% at 10 years, 80% at 25 years

90% at 12 years, 80% at 25 years

80% in 25 years

Degradation used in calculation 0.005 per year 0.005 per year 0.008 per year 0.005 per year 0.005 per year

OTHER MONITORING,

Buy out $13,195 at 5 years, $3,564 at 18 years/end

MONITORING PREPAID RECYCLING, MONITORING

NONE, monitoring system not included

NONE, monitoring system not included

Ave AC Bill Monthly Savings $152 $152 $100 $120 $150

BREAK EVEN POINT 7 Years 7 Years 8 Years 8 Years 8 Years

If 5% AC cost increase per year, savings at year 18

$13,196 $44,576 $28,454 $34,947 $43,843

If 2% AC cost increase per year, savings at year 18

$10,863 $36,692 $24,140 $28,767 $36,089