Will grid parity change everything for solar industry?

EL SEGUNDO, USA: Many in the solar power industry and the investment community believe the arrival of grid parity—the point when cost of electricity generated by a rooftop photovoltaic (PV) cell system is equivalent to that purchased from an electrical utility—will mark a major inflection point for the market that will deliver a huge increase in growth.

However, even when true grid parity arrives, it’s unlikely to generate an abrupt rise in solar system installations due to the high upfront costs and the long-term return of investing in a rooftop photovoltaic system, according to iSuppli Corp. In fact, growth is set to moderate during the years when grid parity arrives for various regions of the world as the industry enters a more mature phase.

Following a dip in growth in 2009, photovoltaic installations measured in terms of megawatts are expected to rise at a Compound Annual Growth Rate (CAGR) of 72.4 percent from 2010 to 2013. During the period from 2010 to 2020, when grid parity is expected to arrive in many nations that are leading in solar-energy installations, the CAGR will slow to 20 percent.

Parity apparent
While there are many definitions of grid parity, iSuppli characterizes it as the point when an investment in a rooftop solar system delivers a 100 percent return on investment in five years. Furthermore, debts incurred, i.e. negative cash balance in the investment in the system—must never exceed 25 percent of the total cost of the installation.

“iSuppli doesn’t expect the arrival of grid parity to result in an abrupt increase in user demand for photovoltaic systems,” said Dr. Henning Wicht, senior director and principal analyst for iSuppli.

“The market is likely to make a smooth transition, with demand progressing through the arrival of grid parity in an evolutionary way. This is because users must still make an investment in advance and the wait for the return over a long period of time. A lot of this has to do with psychology. It takes a high level of commitment to invest in a solar system that is expected to operate during a period of 30 years.”

Because of this, global PV installations are expected to rise in smooth fashion, even when grid parity arrives in certain nations of the world. The major factor determining the growth of PV installations will be the supply/demand balance, which will dictate pricing.

Solar market to recover from Spanish flu
Global PV installations are expected to decline by 32.3 percent in 2009 to reach 3,546 megawatts, down from 5,235 in 2008. However, the 2009 decline is due to a single event: a sharp decline in expected PV installations in Spain.

Spain accounted for 50 percent of worldwide PV installations in 2008. An artificial demand surge had been created in Spain as the time approached when the country’s feed-in-tariff rate was set to drop and a new cap of 500 Megawatts loomed for projects qualifying for the above-market tariff. This set a well-defined deadline for growth in the Spanish market in 2009.

However, megawatt installations will rebound in 2010 with growth of 42.5 percent, followed by a 73.6 percent rise in 2012 and a 68.6 percent increase in 2013.

The figure presents iSuppli’s forecast of worldwide photovoltaic system installations in terms of megawatts.Source: iSuppli, June 2009

Waiting for parity
Different countries are expected to attain grid parity at different times, due to varying factors including sun exposure and the cost of utility-provided electricity.

“The country that is probably closest to reaching this standard is Italy,” Wicht said. “Italy has high electricity rates, and low system prices. It also has a high exposure to solar radiation.

However, even in this nation, the elapsed time to the cash break-even point is now about 14 years. Furthermore, debt for a system installed now will reach 35 percent of the net system price.”

iSuppli doesn’t expect the nation’s solar industry to achieve grid parity until 2012.

The next closest nation to reaching grid parity is Germany due to the high cost of electricity and the availability of low-cost solar systems in the nation. However, Germany is not set to achieve grid parity until 2018, according to iSuppli’s definition.

California may already have achieved grid parity if consumers are paying the premium of 35 cents per kilowatt hour. However, this kind of grid parity addresses only a small fraction of the state’s consumers. Grid parity addressing the majority of private household and reaching electricity prices of 22 cents per kilowatt hour are likely to be achieved in four to five years.

However, these events are not likely to spur a major rise in solar installations.

“The definition of Grid parity is imprecise, making it easy to call it the holy grail for solar,” Wicht added. “As solar system prices will continue drop and public incentives will allow to obtain Return on investment of 5 to 10 percent over 20 years, Solar Penetration will rise like any other market, with early adopters and late adopters. The market is at an early stage in terms of penetration. Penetration of solar systems will progress like any other market.”

Solis Energy intros dual PoE splitter/injector (PSI)

ORLANDO, USA: Solis Energy, a global provider of continuous outdoor power generation and connectivity, has introduced the newest product in its growing line of “smart” solutions -– the Dual PoE (Power over Ethernet) Splitter/Injector (PSI).

The Dual PSI enables users to provide DC power to multiple outdoor PoE-equipped devices, including wireless access points, broadband wireless backhaul, and surveillance cameras.

Available as a complete system within an enclosure for pole-top applications or as a sub-assembly component for OEM installation, the product’s unique design allows two independent DC power sources to deliver from 0 to 60 volts per PoE device. This PSI can also be used to separate the power from the PoE input to run a non-PoE device, such as an analog camera.

“Now it’s possible to easily run multiple devices simultaneously, such as a surveillance camera and radio, or back-to-back radios, without the expense and inconvenience of installing an AC source or PoE injector for each device,” said Solis Energy CEO Robert Reynolds. “This product provides a cost-effective solution for airports, water management districts, governments, military bases and other entities that need to secure the perimeter of a wide-open space and maintain vital applications like video surveillance security systems.”

The Dual PSI can be powered from any standard DC power source or used with Solis Energy’s Solar Power Plants, Continuous Power Bridges, or Outdoor UPS’s, which continuously power critical, low-wattage devices (typically 100 watts or less), wherever they are located, even where grid-supplied electricity is either unavailable or unreliable.

Key features
Flexibility — Use as an injector to simultaneously power multiple PoE devices with different power requirements (such as a 48 volt radio and a 24 volt camera). Use as a splitter to separate the power from the PoE sourcing interface on a radio to run a non-PoE device (such as a non-PoE camera).
Truly universal — The design is compatible with any equipment supporting the IEEE standard pinout for PoE devices (Vin +: Pins 4 and 5, Vin -: Pins 7 and 8) and supports up to 60 volts per PoE-enabled device.
Cost- and time-reducing alternative — This PSI saves time and money by eliminating the need to purchase and install a separate PoE Splitter/Injector for each electronic device in the application. The small form factor reduces the impact to valuable enclosure space and the DIN rail housing greatly reduces installation complexity.
Low maintenance — This passive device can be mounted at the top of a pole and does not require maintenance.
Enhanced equipment protection — The PSI’s unique design utilizes high-speed surge protection devices to individually clamp the data lines at ± 58 vDC. Power is supplied to the design via two terminal blocks that can accept 14-26 AWG wire. LEDs provide a quick indication for the presence of PoE power to the end user and shielded RJ45 jacks help minimize EMI issues.
State of the art components for the harshest of environments — Ideal for outdoor use in areas with extreme temperature variations (-4 to 158°F, -20 to 70°C).

For applications that are not pole-top and do not require the complete PoE enclosure, Solis Energy offers the same Dual PSI as a sub-assembly component. Engineered for fast, easy installation, the sub-assembly component mounts easily in an existing enclosure, either on the inside wall or DIN rail.

Bright prospects for solar industry at Intersolar 2009

MUNICH, GERMANY: The world’s largest trade show for solar technology, Intersolar, has been an enormous success. The organizers were able to achieve their objectives, with approximately 60,000 visitors from over 150 nations visiting the show. In addition, over 2,000 participants attended the 22 conference events in Munich.

"Never before has Intersolar had more exhibitors, more visitors, more media representatives and more different nations represented. Given the difficult economic situation, we are especially pleased that Intersolar 2009 has turned out so successful. At the last provisional count here in Munich, we registered visitors from over 150 nations. The response has been truly overwhelming," says Markus Elsässer, Managing Director of Solar Promotion GmbH, one of the two organizers of Intersolar.

Klaus W. Seilnacht, CEO of Freiburg Wirtschaft Touristik und Messe GmbH & Co. KG, and co-organizer of Intersolar, is also more than satisfied with the show: "Following on from the extremely successful opening in Munich in 2008, we are pleased to see such a significant year-on-year increase in levels of interest among exhibitors and visitors. This growth in international attendance, size, number of exhibitors and visitors gives us plenty of cause for optimism."

Exhibitors and visitors highly satisfied
In view of the approximately 60,000 visitors, the large number of innovations exhibited at the show and the 37 percent increase in exhibition space, visitors and exhibitors alike were more than satisfied with Intersolar 2009.

"We have exhibited at Intersolar right from the very beginning. We have followed the show from Pforzheim to Freiburg and now to Munich. The exhibition halls are fantastic, and the show is extremely well organized. We are very pleased with the large numbers of high-caliber visitors the show is able to attract, including a great many foreign visitors, who are very important to us," says Rudolf Pfeil, CEO of RESOL – Elektronische Regelungen GmbH.

"I find Intersolar a very fascinating solar show. It is the biggest solar show in the world and you can just feel the energy here," says Connie J. Duncan, Senior Manager of Applied Materials Inc.

"We are very pleased with the way the show has gone and the fact that visitors showed a great deal of interest in our booth, and especially our new exhibits. Intersolar is without doubt the world's leading trade show and, as such, is a must for anybody who wants to launch a new product on the market," says Christoph Panhuber, Head of the Solar Electronics Division of Fronius International GmbH.

The partners of the trade show are satisfied with the event as well. Heinz Kundert, President of the SEMI Europe PV Group, has appreciated the upbeat atmosphere at the show over the last few days: "You can feel that the interest in PV is extremely high and exhibitors are pleased."

The next Intersolar will take place in Munich from June 9 to 11, 2010.

Sunrise Solar joins Energy Leadership in Washington

SAN ANTONIO, USA: Sunrise Solar Corp. announced that it’s President, Maurice Stone, is the Chairman of the Energy Committee of the National Black Chamber of Commerce.

The Chamber actively works with members of Congress and the leaders of a number of national agencies and associations to provide a voice for small business in designing America’s new energy policies.

"Maurice Stone, NBCC Energy Committee Chairman, and I have been meeting with various associations and organizations in Washington, DC discussing the American Clean Energy and Security Act of 2009 H.R. 2454, commonly referred to as the Waxman/Markey or Climate Change Bill, and its effects on "Green Jobs" and the economy." stated Harry Alford, President and CEO of the National Black Chamber of Commerce and Chairman of the Regulatory Committee of the US Chamber of Commerce. “We expect a lot of debate in the House and very robust debate in the senate regarding this important bill."

The National Black Chamber includes some of the most influential corporations in America, such as energy stalwarts Chevron and Exxon, telecom giant AT&T, and even financial powerhouse Wells Fargo.

The National Black Chamber of Commerce is dedicated to economically empowering and sustaining African American communities through entrepreneurship and capitalistic activity within the United States. The Chamber reaches more than 100,000 Black owned businesses nationwide and provides an advocacy that reaches 1 million Black owned businesses. African Americans have over $800 billion in expendable income each year according to the US Bureau of Census.

“We expect to lead, not follow, in the development of energy policy in the United States,” noted Maurice Stone, President of Sunrise Solar Corp. “We believe the interests of our company and its shareholders are best served if we have a voice at the table when energy policy decisions are being made.”

Hannover Leasing acquires three SunEdison PV systems in Spain

MADRID, SPAIN & BELTSVILLE, USA: SunEdison, North America’s largest solar energy services provider, announced that Hannover Leasing has purchased three SunEdison photovoltaic solar energy systems in Spain’s Lleida province. Under a long-term agreement, SunEdison will monitor, maintain and operate the systems, which have a combined capacity of 4.3 MW. Further details of the transaction were not disclosed.

The three ground mount systems -- 1.6 MW in Alamus; 1.6 MW in Borges Blanques; 1.1 MW in Cervia -– have been operating since September 2008.

“Hannover Leasing recognizes the long-term value of investing with companies which have a proven track record of constructing and operating photovoltaic solar systems. Our goal is to deliver opportunities with financing structures that create immediate tangible value and long-term, stable returns to our partners,” said Carlos Domenech, COO, SunEdison.

Andreas Ahlmann, Managing Director, Hannover Leasing, said: “Despite the economic downturn, Hannover Leasing continues to invest in solar projects. SunEdison is a proven leader in the photovoltaic solar market and has a reputation for developing quality projects that exceed expected generation. These systems offer a unique risk-return profile.”

Due to the company’s advanced monitoring and control technologies, SunEdison’s portfolio of solar assets performed at over 100 percent of expected output in 2008 -- generating stable, low risk cash flows for investors.

SunEdison has more than 200 photovoltaic solar energy systems under management in North America and Europe. The company has offices throughout the United States, Spain, Italy, France and Germany.

Yingli Green Energy, Energy Research Centre, Amtech to develop next-generation high efficiency solar cells

BAODING, CHINA & TEMPE, USA: Yingli Green Energy Holding Co. Ltd, one of the world’s leading vertically integrated photovoltaic product manufacturers, the Energy Research Centre of the Netherlands (ECN), a leading solar research center in Europe, and Amtech Systems Inc., a global supplier of production and automation systems and related supplies for the manufacture of solar cells, today announced a three-party research collaboration agreement to develop next generation high efficiency solar cells.

The joint project under the agreement endeavors to develop and implement high efficiency N-type silicon solar cells, named PANDA, at Yingli Green Energy’s pilot production line in Baoding, China.

The high efficiency cells will utilize the cell design of ECN, the solar diffusion technology and dry PSG removal expertise of Tempress Systems Inc., Amtech’s solar subsidiary, and Yingli Green Energy’s leading cell process technology. The construction of the pilot production line does not require significant capital expense, as it only makes moderate changes on the current production lines.

“Yingli Green Energy always strives to be at the forefront of the latest technological developments in the PV industry,” said Liansheng Miao, Chairman and CEO of Yingli Green Energy. “To that end, we are very pleased to be entering into a cooperation that combines our strong commercialization capabilities with the strengths of a global research institution and a leading equipment supplier. We look forward to playing a crucial role in the introduction of the next generation of high efficiency solar cells. PANDA aims at significantly raising the efficiency of crystalline silicon solar cells and at commercializing the new technology quickly on our production lines.”

“We are very happy that ECN’s technology for N-type crystalline silicon solar cells is going to be industrialized in cooperation with these ambitious partners with a long operating history in the PV industry,” said Ton Hoff, Chairman of the Board of ECN.

J.S. Whang, President and CEO of Amtech, commented: “We are excited about this joint agreement with leaders in the industry and its potential to contribute to significant improvements in solar cell efficiency and bring solar energy closer to achieving grid parity. PANDA is true validation for our Tempress’ in-depth diffusion expertise and our capability for supplying reliable diffusion and automation equipment to the solar industry.”

Solar Power helps LA go green with clean solar power

MILL VALLEY, USA: Solar Power Partners Inc. (SPPTM), America’s premier independent solar power producer, today officially announced that several of its solar energy facilities in the Los Angeles area are in full commercial operation and generating electricity.

The solar energy facilities include a 238.68 kW system at the California Institute of Technology (Caltech) in Pasadena; a 601.02 kW system at BT’s North America corporate headquarters offices in El Segundo; and Safeway Inc.’s Vons grocery stores in Monrovia (230.09 kW), Oxnard (187.53 kW), Corona (204.82 kW), and Murrieta (198.17 kW).

Each solar facility was financed and developed using a solar Power Purchase Agreement (PPA), a long-term energy financing solution that helps customers go green without the hassles or costs of solar facility ownership, operations, or maintenance.

A solar PPA allows SPP’s host customers to pay only for the energy produced by the system, while SPP, alone and/or through its subsidiaries, develops, operates, and maintains the system for the length of the agreement, usually over twenty years. SPP’s host customers can enjoy predictable energy rates for the life of their agreement.

“Thanks to our partnership with Solar Power Partners, BT is now not only significantly reducing carbon emissions -- we’re realizing reduced power costs for our site as well as helping our company fulfill its very ambitious corporate social responsibility goals,” said Jon Reiter, Senior Director, Major Transactions, BT Americas.

As noted by Bill Irwin, Senior Director of Facility Management at Caltech, “SPP’s experience making solar power attainable for schools and universities makes for a great long-term partnership.”

“SPP is proud to be a part of solar energy initiatives by leading corporations and universities in the greater Los Angeles Area, the regional market with possibly the greatest potential for distributed commercial solar applications throughout America. Our projects with Caltech, BT, and Safeway are excellent examples of how solar Power Purchase Agreements enable entities to embrace solar energy without any of the operational hassle of owning a power plant,” said Alexander v. Welczeck, President and CEO, Solar Power Partners.

SPP’s dedicated asset management team operates each facility using web-based monitoring technology, which provides performance data every 15 minutes and operation alerts as necessary. SPP manages all aspects of preventative maintenance and repairs when needed.

The Caltech solar system features a 238.68 kW sized fixed rooftop array on the Holliston parking garage. The system’s estimated annual solar-generated electricity eliminates 527,000 pounds of CO2 emissions from the air, which is equivalent to removing 46 cars from operation, planting 72 acres of trees, or powering 38 average homes annually.

The system at BT’s office building in El Segundo is a 601 kW fixed rooftop and elevated system, including a tracking system over the main parking lot. The tracking modules move during the day to follow the sun, thereby increasing energy production. The system is expected to generate approximately one million kilowatt-hours (kWh) of renewable electricity each year, which will reduce carbon emissions by 700,000 pounds (more than 316 metric tons) annually, helping the company fulfill its global goals for sustainability.

The four Safeway stores in Monrovia, Oxnard, Corona, and Murrieta total 820.61 kW in size, and are all fixed rooftop systems. Combined, these systems are estimated to produce enough solar-generated electricity to eliminate 973 metric tons of CO2 emissions from the air, or to power 88.5 average homes annually, according to the US Environmental Protection Agency calculator.

Financing of the solar facilities was partially provided by Bank of America in the form of a tax equity investment and Energy Investors Funds through their United States Power Fund III, L.P.