This begs the question: Where in the PV supply chain is there room for improvement? In short: silicon. Despite cost fluctuations in recent years, silicon is still the single most expensive component in the PV supply chain. Rising solar demand has pushed silicon prices to $22 per kilogram (kg), and analysts are forecasting silicon prices will reach $25 per kg within the next two years. Moreover, silicon shortages are imminent as producers struggle to expand capacity to meet demand, likely pushing silicon costs even higher. How do we address high silicon pricing? Unlike most segments of the PV supply chain, polysilicon production has not experienced meaningful innovation since the 1960s. Over the past 50 years, the vast majority of the solar industry’s polysilicon has been produced using the Siemens method, which results in electronic-grade (EG) silicon best suited for use in the semiconductor industry. The simple fact is that EG silicon is over-engineered for the solar industry, and it lends to unnecessarily high costs for cell and module manufacturers. Developing a viable alternative to EG silicon – one that yields high-performance material at a lower cost – is crucial to achieving meaningful cost reduction across the supply chain. Is technological innovation for silicon on the horizon? Yes, and in fact, it’s already happening. For example, Silicor Materials is on its way to commercializing a unique alternative to the Siemens method with its proprietary production process designed specifically to meet the needs of the PV industry, generating solar silicon at the industry’s lowest cost, without compromising performance, which means it could ultimately boost gross margins for PV manufacturers. - See more at: solarnovus/where-in-the-pv-supply-chain-is-there-room-for-improvement_N8059.html#sthash.RUSr3o8M.dpuf solarnovus/where-in-the-pv-supply-chain-is-there-room-for-improvement_N8059.html
Posted on: Fri, 29 Aug 2014 16:35:25 +0000
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