THIN FILM SOLAR PANELS

Solar Frontier Inks $100 Million Deal for Thin Film Solar Panels

With a new $100-million-plus contract to install its thin film solar panels in the Mojave Desert, Japan-based Solar Frontier KK is emerging as a formidable new contender in the crowded solar market.

EnXco, a subsidiary of EDF Energies Nouvelles Co., agreed to purchase up to 150 megawatts of the panels, in the largest deal ever for this type of thin film technology. The panels are using a semiconductor blend of copper indium gallium and selenium, or CIGS, which until now has been deployed on a much smaller scale.

The enXco deal is notable as it represents market acceptance of CIGS panels, which have had limited success to date. Last year First Solar abandoned its research and development effort in CIGS, and Solyndra LLC, which also used CIGS as the basis for its solar panels, saw costs spin out of control and declared bankruptcy.

There are also several smaller privately held companies, backed by venture capitalists, such as Miasole Inc., SoloPower Inc., NanoSolar Inc. and Stion, that are developing CIGS technology. Solar Frontier has been developing the CIGS technology for the past 18 years.

Will 2012 Belong to Solar Power

Changing government policies have not been kind to renewable energies over the past two years, and both solar and wind energies are heavily dependent on subsidies. 2010 was a tough one for the wind business, with government support declining markedly, thus affecting demand. In 2011, demand and pricing stabilised for wind, but solar energy experienced what may be the worst year in its history. 2012 will be marginally better for solar, but only marginally.

Fortunately, over the long term, there will be place for both these technologies in a country’s energy portfolio. Wind power is already economic in terms of cost per watt, but its output curve doesn’t match the consumer demand curve very well. Therefore, its energy storage technology has to improve. Solar’s output curve closely matches demand in most countries, but its cost per watt has to get a whole lot better.

So, what happened to solar energy? Subsidies were under pressure, particularly in the large European markets. Demand in the US did not pick up as anticipated, adding further pressure. Then, there was an incredible amount of overcapacity in the solar industry, leading to cut-throat competition, (pushing) prices down. The last thing to happen was the fall in the price of polycrystalline silicon, which crashed to $38-45 a kg. You would think that the declining raw material cost would help the profitability of an industry. But, in this case, the decline was so great that it upset the underlying economics.

The long-term, average price of electronic grade crystalline silicon is $45 a kg. There have been troughs — $25 a kg in 2002 — and peaks — $450 a kg in 2009. Adding polysilicon capacity is expensive and, because it’s nearly impossible to marginally increase output, adding capacity shocks the supply-demand balance. The industry swings between periods of ‘feast and famine’ but what was unusual this time was that instead of the semi-conductor industry driving the economics, it was the solar industry.

A lot of manufacturers in the solar value chain based their strategies on the high price of silicon that existed in 2008 and 2009. But when the prices of polycrystalline silicon fell, all those projects became unviable. Almost 80 per cent of global solar panels are based on some kind of metallic silicon technology. The remainder uses thin film technology. Most thin film companies had come up to provide a substitute to the expensive polysilicon and had based their plans on the price of silicon remaining at $100, $200 or even $400 a kg. When the price of polysilicon crashed, they lost their reason for existence.

So, there was reduced demand because of lower government subsidies, massive overcapacity among the silicon-based manufacturers, and a surfeit of new, thin film manufacturers. A perfect storm.

I have never been an advocate of large solar farms that have to distribute power over the main grid. Solar electricity is perhaps the most expensive in terms of dollars per watt. Solar power itself can cost between 12 and 16 cents a kilowatt-hour. This is comparable to what an individual in California pays for the grid power at about 20 cents a kilowatt-hour. But this is the cost of solar power at the point of manufacture. When you create a solar farm and try to distribute it over hundreds of miles, it just becomes too expensive. Without heavy subsidies, a solar farm that mimics a centralised generating system is absolutely uneconomical. Some subsidy is okay, but basing an industry on long-term continuing subsidy is not a good idea.

Don’t get me wrong. Solar can be a perfect solution for a village that hasn’t been touched by electricity. Put up a small solar farm and create a local grid to supply power. But don’t try and run the power over the main grid.

An efficient coal plant may cost 2.5 cents a kilowatt-hour (kWh); a nuclear plant is 4-6 cents a kWh; wind power can be 5-7 cents per kWh, and solar at least double that. And, of course, wind and solar output are both governed by nature. The flip-side is that both are zero-carbon, renewable power sources that don’t depend on imported energy sources. Most countries will want to use both in some measure.

Golf Cart Solar Introduces Thin Film Solar Golf Cart Kit

Golf Cart Solar, a Sarasota, Florida based solar technology company announced today a new “Zero Cost” golf cart solar panel program that provides solar panels for golf carts at no cost to the end user customer. Golf Cart Solar will be unveiling the new program at the PGA Show, Orlando, FL January 26-28, 2012, booth 2228.

“In addition to the obvious demand by golf courses and golfers to go green, technological advances, government incentives and increased competition has driven down the cost of solar cells, resulting in this new breakthrough pricing program,” said Doug Fyvolent, partner in Golf Cart Solar.

Golf courses could save up to 20% or more on electrical costs associated with charging golf cart batteries. This savings reduces one of the major expenses incurred by golf courses. Golf Cart Solar’s program includes both new and used aftermarket kits, as well as an original equipment manufacturer (OEM) program so the leading golf cart manufacturers can install the system inline during the manufacturing process.

The Program is available to golf courses that either buy or lease. “We have had extensive conversations with the leading cart leasing companies and they understand what we are doing and if they qualify can include this kit in their leasing programs,” said Fyvolent.

The kit includes a new technology, thin film solar panels, controller and wiring harness. Golf Cart Solar can also do the installation for the end users.

Warren Buffett Buys into Thin Film Solar Panels

Warren Buffett’s MidAmerican Energy Holdings unit agreed to buy the $2 billion Topaz project in California, branching into solar power after the industry was clobbered in stock markets around the world.

The Topaz Solar Farm in San Luis Obispo County will be one of the largest photovoltaic power plants in the world and is being developed by the seller, First Solar Inc. (FSLR) of Tempe, Arizona, according to a joint statement today from the companies. Financial terms weren’t disclosed.

Buffett’s Iowa-based natural gas and power supplier struck the deal after First Solar failed to get a U.S. government loan guarantee for the project that will use First Solar’s thin-film solar panels. The manufacturer’s shares have fallen 65 percent this year, matching the 65 percent drop in the Bloomberg Industry Global Leaders Large Solar Energy index.