Navigating Innovation and Sustainability in the Solar Cell Industry
According to a report from the International Energy Agency (IEA), the world’s capacity to generate renewable electricity is expanding faster than at any time in the last three decades. Thanks to this rapid expansion, there’s now a chance to achieve the goal of tripling global capacity by 2030 that governments set at the Dubai COP28 climate change conference in December 2023.
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The IEA Renewables 2023, the latest edition of an annual market report on the sector. In this addition of the report, the IEA states the amount of renewable energy capacity added to energy systems around the world grew by 50% in 2023, reaching almost 510 gigawatts (GW). Of the various components contributing to the growth, solar photovoltaic (PV) accounted for three-quarters of additions worldwide.
Balancing Existing Technology and Innovation
The solar cell market is an industry that balances building upon existing technology with the drive to innovate continuously. Companies in this sector face the challenge of meeting current market demands while preparing for future technological shifts. To ensure competitiveness and sustainability in the face of rapid advancements, strategies are in place to drive innovation and address hurdles.
Marcus Taylor, senior vice president of business development at Gray, says that in response to the changing technological landscape, companies in the solar cell market have segmented their offerings for different consumer categories. Residential consumers typically experience technology similar to past iterations due to factors like panel scale, size, and pricing that align with return on investment (ROI) models for roof installations. On the other hand, commercial and utility consumers witness newer technologies entering the market, driven by their ability to absorb higher panel costs at scale.
Meeting current market demands while preparing for future shifts involves leveraging proven technology to gain or retain market share in a growing industry, according to Taylor. “As operations come on-line domestically, they are master planning their production bases with higher efficiency cell technology and production in mind to offset capital costs down the road,” he says.
Advancing Perovskite Solar Technology
One of these higher efficiency cell technologies is the perovskite solar cell. The U.S. Department of Energy (DOE) Solar Energy Technologies Office (SETO) supports research and development projects that increase the efficiency and lifetime of hybrid organic-inorganic perovskite solar cells, speeding the commercialization of perovskite solar technologies and decreasing manufacturing costs.
Halide perovskites are a family of materials that have shown potential for high performance and low production costs in solar cells. The name “perovskite” comes from the nickname for their crystal structure, although other types of non-halide perovskites (such as oxides and nitrides) are utilized in other energy technologies, such as fuel cells and catalysts. According to the DOE, “Perovskite solar cells have shown remarkable progress in recent years with rapid increases in efficiency, from reports of about 3% in 2009 to over 25% today.”
Although perovskite solar cells have become highly efficient in a short time, challenges remain before they can become a competitive commercial technology. SETO says the four primary challenges that must be simultaneously addressed for perovskite technologies to be commercially successful, include:
- Stability and durability
- Power conversion efficiency at scale
- Manufacturability
- Technology validation and bankability.
Each challenge represents a unique set of barriers and requires specific technical and commercial targets to be achieved. To learn more, visit https://www.energy.gov/eere/solar/perovskite-solar-cells.
Driving Innovation and Balancing Capital Intensity, Operational Efficiency
Gray’s Taylor says that to remain competitive and sustainable amidst rapid technological advancements, the solar cell market focuses on capital-intensive cell production with a keen eye on operational regulations and financing options. Companies seek to offset capital expenditures (CapEx) and operational expenses (OpEx) through various means, including utilizing Individual Retirement Account (IRA) funds and partnering with equity firms.
Innovation and evolution within the industry are primarily driven by the quality of wafers used in production and the availability of production equipment. “Newer technology equipment is primarily manufactured in one region, which is creating longer lead times than traditional cell production equipment,” Taylor says.
Efficiency improvements, scalability, and sustainability are key focuses for the industry’s progression. Partnerships with utility companies and private equity firms play a significant role in addressing these challenges and ensuring forward momentum in the solar cell market, Taylor says, noting that overcoming obstacles such as understanding municipal operating parameters and securing the necessary capital for implementing new technologies developed in research and development (R&D) settings are critical for the continuous advancement of the solar cell industry.
The solar cell market’s balance between building on existing technology and driving innovation is fueled by a strategic approach to meeting market demands, ensuring competitiveness, and navigating the ever-evolving technological landscapes. By addressing challenges, leveraging partnerships, and overcoming hurdles, industry is paving the way for sustainable growth and progress for solar energy solutions.
Some opinions expressed in this article may be those of a contributing author and not necessarily Gray.