A new report from an Energy Think Tank on Solar Photovoltaic Market Potential
A new report from “Energy Business Reports (EBR)” details the challenges and opportunities of this energy sector
Phoenix, AZ – January 25, 2007
Photovoltaic (PV) systems convert sunlight into electricity by means of photovoltaic – or solar – cells. Solar energy is extremely clean energy. As it quietly generates electricity from light, PV produces no air pollution or hazardous waste. It requires no liquid or gaseous fuels to be transported or combusted. And, because its energy source, sunlight, is free and abundant, PV systems can offer virtually guaranteed access to electric power. However, in today’s world this technology faces several large obstacles, most notably the costs relating to power generation and transmission as well as difficulties in obtaining funding for the development of advanced technology. The market potential and the technical, political and economic hurdles facing the solar PV industry are the focus of a new 129-page report from Energy Business Reports, “Solar Photovoltaic Market Potential.”
The Solar Photovoltaic Market Potential provides a comprehensive assessment of the state of solar photovoltaic technology and the potential for this market. The report examines this emerging technology and focuses on various technical, economic, and commercial aspects of solar photovoltaics. Beginning with an overview of PV technology, including its advantages, various types of PV, and its applications, the report goes on to explore PV market dynamics including current and future market size, market growth and development, major trends, and barriers to the development of PV technology. A detailed PEST analysis and cost analysis for the commercialization of PV technology compliments this overview. The report also includes an in-depth analysis of leading players, countries as well as companies, and several case studies.
Environmental benefits of Solar PV energy: Photovoltaic generation produces less than 15% of the carbon dioxide that is spewed from a conventional coal-fired power plant even when the emissions related to solar cell manufacturing are considered. During operation, PV produces no air pollution, hazardous waste, or noise, and it requires no transportable fuels. The process directly converts the sun’s energy into useful energy without harmful by-products.
The reduction of greenhouse gas emissions is the most significant environmental benefit of PV use. PV systems do not create carbon dioxide emissions or other greenhouse gases, so using PV energy helps reduce greenhouse gas emissions and thus mitigate global warming.
Barriers to PV use: High financing costs weigh on the competitive position of solar PV systems, since these systems generally require higher initial investments than fossil fuel plants despite having lower operating costs. Customer acceptance is another issue, and even though solar power has been in use for decades, many people still do not consider it a viable option for their own homes or businesses simply because they do not have the information necessary to make educated decisions about PV. Many customers, for example, believe that solar technologies are unreliable and available only when the sun is shining. They may not be aware that these intermittent technologies can be highly reliable when combined with other options. Other significant market barriers include the need to develop brand-name recognition and stable pricing for solar-electric components and systems. Technical hurdles also need to be overcome, including the need for improved manufacturing infrastructure to increase throughput and yield. Research is underway for development of so-called second generation – or thin-film – PV technologies to bring down the costs associated with PV energy; however, continued R&D is needed to improve annual output.
PV market assessment: The PV manufacturing industry has passed through three phases and is now reaching a stage of global consolidation. Like many nascent technologies, the industry started with a field of many small companies and has gradually been whittled down over the last ten years due to consolidation in the market. The global photovoltaic industry reached $7.6 billion in worldwide sales in 2004 compared to $5.8 billion in 2003, and is expected to grow more than 15-20% per year over the next several decades. This increase is driven by market introduction programs and rural electrification programs in countries around the world and supported by the progress in materials and processing technology. Over the long term, growth rates for photovoltaic will remain high, even if political or economic frame conditions cause short-term lulls in growth rates.
Other topics covered in the report include:
• PV systems and analysis of types of solar cells
• Principal PV applications
• Research and development initiatives
• Emerging trends in the PV industry
• Challenges and barriers
• Extensive regional assessments of the PV market in Canada, the United States, Japan, Australia and Europe.