Overview

Government incentives, rising energy costs, and the growing concern over climate change have fueled rapid growth in the photovoltaic (PV) industry in the United States. Subsequent to the investment tax credit for solar installations that went into effect in January 2006 as part of the Energy Policy Act of 2005, the PV industry has experienced two consecutive years of enormous growth in total shipments of PV cells and modules. Shipments increased about 50 percent each year between 2005 and 2007. As a result, the industry is more than 10 times the size it was in 1998 (Figure 3.1, Table 3.1, and Table 3.3). Simultaneously, the significant growth of the PV market caused a silicon shortage within the PV industry. Nevertheless, supply shortages have led PV manufacturers to find ways to use silicon more effectively and efficiently. It has stimulated the development of thin-film technologies that do not rely on silicon and are less expensive to manufacture than the crystalline silicon technologies.

Figure 3.1 Photovoltaic Cell and Module Shipments, 1998-2007

Source: Energy Information Administration (EIA), Form EIA-63B, "Annual Photovoltaic Module/Cell Manufacturers Survey." Chart data.

Industry Status

The number of active PV manufacturers and/or importers that ship PV cells and modules increased from 41 companies in 2006 to 46 companies in 2007. These new companies increased overall PV production to meet the expected increase in demand internationally. During 2007, PV cell and module shipments reached a record high of 517,684 peak kilowatts, a 53 percent increase from 337,268 peak kilowatts in 2006 (Figure 3.1 and Table 3.1). Exports accounted for most of the increase.

The companies reporting PV shipments in 2007 also reported being involved in one or more of the following photovoltaic-related activities:

• A total of 24 companies were involved in module and/or cell manufacturing,
• 25 were designing modules or systems,
• 16 were developing prototype modules,
• 13 were developing prototype systems,
• 25 were involved in wholesale distribution
• 14 were involved in retail distribution, and
• 13 were offering installation of their products (Table 3.18).

Of the 46 companies active in 2007, up to 19 are expecting to introduce crystalline silicon products, up to 6 companies are planning to introduce new thin-film products, and 2 companies are expecting to provide new concentrator photovoltaic (CPV) products in 2008 (Table 3.17). This indicates that the silicon shortage has opened the opportunity for the thin-film market and for companies to create new innovations to close the gap between thin-film PV and conventional crystalline silicon PV.

Corresponding to the strong growth of the PV shipments, employment in PV-related activities increased 53 percent, from 4,028 person-years in 2006 to 6,170 person-years in 2007 (Table 3.16). Of the 46 companies, 28 had 90 percent or more of their total company-wide revenues in PV-related activities, 7 had 50 to 89 percent, 7 had 10 to 49 percent, and 4 companies had less than 10 percent (Table 3.19).

PV cells and modules can be made from different semiconductor materials, varying in cost and performance. Shipments of PV cells and modules are divided into three main categories by product type (Figure 3.2): (1) crystalline silicon, a type of photovoltaic cell/module made from a wedge of single-crystal or polycrystalline silicon, based on crystal-producing processes such as single-crystal, cast, and ribbon; (2) thin-film, photovoltaic cell/module made from layers of semiconductor material, such as amorphous silicon (a-Si), cadmium telluride (CdTe), or copper indium gallium selenide (CIGS); and (3) concentrator, a type of photovoltaic cell/module including a reflective or refractive device (such as lenses that gather and concentrate sunlight onto the photovoltaic cell).

Figure 3.2 Photovoltaic Cell and Module Shipments by Type, 2003-2007

Source: Energy Information Administration (EIA), Form EIA-63B, "Annual Photovoltaic Module/Cell Manufacturers Survey." Chart data.

The performance of a photovoltaic cell/module can be described in terms of its energy conversion efficiency, the percentage of incident solar energy (input) that the cell converts to electricity (output) under standard rating conditions. In 2007, the average energy conversion efficiencies were as follows: crystalline silicon (single crystal) PV cell/module, 17 percent; crystalline silicon (cast) PV cell/module, 14 percent; crystalline silicon (ribbon) PV cell/module, 12 percent; thin-film (amorphous silicon) PV cell/module, 8 percent; thin-film other (special photovoltaic material such as CdTe, and CIGS) PV cell/module, 12 percent; and concentrator PV cell/module, 35 percent (Table 3.8).

Photovoltaic Cell and Module Shipments

Photovoltaic (PV) cell and module shipments reached 517,684 peak kilowatts in 2007, a 53 percent increase from the 2006 shipments of 337,268 peak kilowatts. Cell shipments accounted for 23,535 peak kilowatts, while module shipments accounted for 494,148 peak kilowatts (Figure 3.1 and Table 3.3). Shipments of cells have generally declined over the past decade, while module shipments have increased more than tenfold.

Despite the shift in focus to thin-film technologies, crystalline silicon cells and modules continued to dominate the PV industry in 2007, accounting for 60 percent of the total shipments (Table 3.5). However, this represents a considerable decline from its 76 percent market share in 2005. In particular, single-crystal silicon totaled 128,542 peak kilowatts, an increase of more than 50 percent compared with corresponding 2006 shipments. Cast and ribbon silicon shipments total 181,788 peak kilowatts in 2007, nearly a 23 percent increase from the corresponding 2006 shipments.

Shipments of thin-film PV doubled to 202,519 peak kilowatts in 2007, compared to 101,766 peak kilowatts in 2005. The market share for thin-film PV has grown rapidly over the past several years. In 2007, thin-film accounted for nearly 40 percent of the market, compared to approximately 10 percent in 2003 (Figure 3.3 and Table 3.5). If thin-film PV continues at its same growth rate (doubling in each of the past four years), its market share may surpass that of crystalline silicon PV by 2010.

Figure 3.3 Crystalline Silicon Shipment and Thin-Film Shipment Market Shares, 1998-2007

Source: Energy Information Administration (EIA), Form EIA-63B, "Annual Photovoltaic Module/Cell Manufacturers Survey." Chart data.

Over the last few years, there has been increasing interest in concentrator photovoltaic (CPV) technology. Although concentrator shipments only accounted for about 1 percent of the total in 2007, the shipments of 4,835 peak kilowatts are noteworthy, representing an increase of 144 percent when compared with corresponding 2006 shipments (Table 3.5).

Total Revenue and Average Price

Total revenue of photovoltaic cell and module shipments grew 49 percent from $1.16 billion in 2006 to $1.72 billion in 2007 (Table 3.6). Revenue includes charges for cooperative advertising and warranties, but does not include excise taxes and the cost of freight or transportation[1].

The average price for modules (dollars per peak watt) decreased about 4 percent, from $3.50 in 2006 to $3.37 in 2007. For cells, the average price increased more than 9 percent, from $2.03 in 2006 to $2.22 in 2007.

Figure 3.4 Photovoltaic Cell and Module Average Prices, 2003-2007

Source: Energy Information Administration (EIA), Form EIA-63B, "Annual Photovoltaic Module/Cell Manufacturers Survey." Chart data.

Domestic Shipments

Rising energy costs during the past few years and the public perception of potentially large energy savings combined with the availability of various incentives have increased the demand for PV. During 2007, domestic shipments continued to surge rapidly, totaling 280,475 peak kilowatts, nearly a 36 percent increase from 206,511 peak kilowatts in 2006 (Table 3.2).

In 2007, domestic shipments to the commercial sector accounted for 140,434 peak kilowatts or 50 percent of the domestic market. Of the domestic shipments to the commercial sector, 81 percent were crystalline silicon, and about 19 percent were thin-film PV. Less than 0.2 percent was concentrator PV (Table 3.7). The residential sector was the second-largest domestic market in the United States in 2007, accounting for 68,417 peak kilowatts or about 24 percent of the domestic market share. This market purchased 80 percent crystalline silicon and 20 percent thin-film PV. The electric power sector, with 13 percent of domestic shipments, was the third-largest domestic sales market, totaling 35,294 peak kilowatts. About 93 percent were crystalline silicon, 5 percent were thin-film PV, and 2 percent were concentrator PV. Shipments to the industrial sector amounted to 32,702 peak kilowatts, or about 12 percent of the domestic market share. Crystalline silicon accounted for 67 percent of the industrial shipments and thin-film PV accounted for 33 percent.

Electricity generation, which consists of both grid-interactive (those connected to the electric power grid)[2] and remote applications (those not connected), continues to be the predominant end use for PV cells and modules. In 2007, PV cell and module shipments to the electric generation market totaled 263,968 peak kilowatts or about 94 percent of domestic shipments. Domestic shipments to original equipment manufacturer (OEM) and transportation end uses were the second and third-largest end uses, respectively, totaling more than 3 percent. Domestic shipments to consumer goods and health end users hold small market shares, totaling less than 0.4 percent (Table 3.7).

During 2007, PV shipments to installers, the largest customer type, totaled 110,009 peak kilowatts, nearly 40 percent of the domestic market share. Shipments to the second-largest customer type, wholesale distributors, amounted to 109,015 peak kilowatts, or nearly 39 percent of the domestic market share (Table 3.4).

Complete Systems

A complete PV system is defined as a power supply unit that satisfies all the power requirements of an application. Such a system is made up of different components, including one or more PV modules, a power conditioning unit to process the electricity into the form needed by the application, wires, and other electrical connectors. Batteries for back-up power supply are an option. Some large-scale PV systems use concentrators to focus incident insolation onto small PV cells and tracking systems to track the sun. These large-scale systems convert sunlight directly into electricity and produce the greatest amounts of power during the afternoon, when electricity demand is high.

During 2007, the number of shipments of complete PV systems decreased sharply to 10,600 systems from 67,172 systems in 2006. In contrast, the total value of complete systems increased 155 percent to $491.7 million in 2007. The total peak kilowatts of complete system surged from 28,099 in 2006 to 80,560 in 2007 (Table 3.15). These statistics indicate companies are becoming more involved in developing larger PV systems with high demand and market growth potential.

Origin of Shipments

Imports of PV cells and modules totaled 238,018 peak kilowatts or 46 percent of total shipments in 2007 (Table 3.11). The predominant type of import shipment was crystalline silicon cells and modules, accounting for 90 percent (214,457 peak kilowatts) of total imports. Japan, China, and Germany accounted for 85 percent of total imports (Table 3.12).

In 2007, a total of 279,666 peak kilowatts of PV cells and modules were manufactured in the United States; manufacturers in Ohio, Michigan, California, and Maryland produced 85 percent of total (Table 3.9).

Destination of Shipments

Exports of PV cells and modules totaled 237,209 peak kilowatts in 2007, an 81 percent increase from the 2006 exports of 130,757 peak kilowatts (Table 3.13). The predominant type of export shipment was thin-film cells and modules, accounting for about 63 percent (149,977 peak kilowatts) of total exports. The export market accounted for 46 percent of total shipments and was dominated by sales to Germany (more than 64 percent of exports), Spain (about 13 percent), and Italy (about 4 percent) (Table 3.14).

In 2007, a total of 280,475 peak kilowatts of domestic PV cell and module shipments went to all 50 States, the District of Columbia, the Virgin Islands, and Puerto Rico (Table 3.10). About 86 percent of domestic PV cell and module shipments (241,712 peak kilowatts) went to five States: California, Nevada, Colorado, New Jersey, and Arizona, with 75 percent (209,031 peak kilowatts) of the total shipments sent to California and Nevada.

Contact: