Total shipments of PV cells and modules reached a new high of 337,268 peak kilowatts, nearly a 50 percent increase from 226,916 peak kilowatts in 2005. Module shipments increased 56 percent to 320,208 peak kilowatts in 2006, while cell shipments decreased to 17,060 peak kilowatts from 21,920 peak kilowatts (Table 2.18 and Figure 2.6).
The number of active companies shipping PV cells and modules jumped to 41 in 2006 from 29 in 2005, an increase of 41 percent (Table 2.19) and the largest by far in a decade. This may be a sign of confidence from investors as well as the solar energy industry itself about the future of the solar energy market. This outlook is supported by the Renewable Portfolio Standard (RPS) policies of some western states (e.g., Arizona) requiring that a certain portion of the RPS be solar-based.
Figure 2.6. Photovoltaic Cell and Module Shipments, 1997-2006
Solar energy companies raced to import PV modules/cells to meet soaring demand. Between 2005 and 2006, imports surged from 90,981 to 173,977 peak kilowatts. Exports also rose sharply, from 92,451 to 130,757 peak kilowatts (Table 2.19 and Figure 2.7).
Figure 2.7. Photovoltaic Import and Export Shipments, 2002-2006
In a dramatic market shift, installers replaced wholesale distributors as the largest business category for PV modules/cells shipped in 2006. Shipments to installers rose approximately 118 percent to 146,948 peak kilowatts, and represented 44 percent of total shipments in 2006 versus 30 percent in 2005. In contrast, shipments to the second-largest category, wholesale distributors, decreased 3 percent to 126,101 peak kilowatts in 2006 from 130,086 peak kilowatts in 2005 (Table 2.20).
While demand for solar continued to grow in 2006, the supply of high-grade silicon used to make PV cells continued to impact the solar industry. Two types of solar companies are expected to perform well in this market. First are the silicon-based solar manufacturing companies that have secured stable silicon supplies. Second are the companies that focused on thin-film solar technology (thin film solar modules use either a very thin coating of silicon or other alternative materials with no silicon).
Not surprisingly, thin-film PV cell and module shipments experienced the greatest percentage gain between 2005 and 2006, nearly doubling. Still, conventional crystalline silicon cells and modules shipments continued to dominate all PV technologies with 233,518 peak kilowatts shipped in 2006. However, its market share continued to decline to 69 percent from 76 percent in 2005 and over 95 percent a decade ago (Table 2.21 and Figure 2.8). Within this category, single-crystal shipments rebounded to 85,627 peak kilowatts, or slightly more than 25 percent of total shipments in 2006, compared to 71,901 peak kilowatts in 2005. Cast and ribbon silicon shipments, the predominant PV technology, rose sharply to 147,892 peak kilowatts in 2005, or nearly 44 percent of total shipments, compared to 101,065 peak kilowatts in 2005 (Table 2.21).
Today, thin-film PV modules that use materials such as amorphous silicon (a-Si); cadmium telluride (CdTe); or copper indium gallium selenide (CIGS) are attracting much attention and are growing at an impressive rate, in part due to the shortage of silicon and high manufacturing costs associated with crystalline silicon cells. With the help of lower manufacturing costs and its versatility, thin film technology has ignited the competition with conventional crystalline silicon technology over the past couple of years. However, thin film modules are typically much less efficient than crystalline silicon modules with 7 to 10 percent efficiency compared to silicon’s average 15 percent efficiency.
While there are a number of companies that are producing thin-film PV cells, the majority of these companies are small and/or startup. The thin-film shipment market share has steadily increased, from 12 percent of total shipments in 2004 to 24 percent in 2005 to 30 percent of total shipments in 2006 (Table 2.21 and Figure 2.8).
Figure 2.8. Crystalline Silicon Shipment and Thin-Film Shipment Market Shares, 1997-2006
Total revenue from photovoltaic module and cell shipments was $1.16 billion in 2006, nearly a 65-percent increase over the 2005 revenue of $0.70 billion in 2005 (Table 2.22).[2] The average price for PV modules (dollars per peak watt) increased nearly 10 percent, from $3.19 in 2005 to $3.50 in 2006. For photovoltaic cells, the average price decreased 6 percent, from $2.17 in 2005 to $2.03 in 2006 (Table 2.22 and Figure 2.9).
Figure 2.9. Photovoltaic Cell and Module Average Prices, 2002-2006
The commercial sector was the largest market for PV modules and cells in 2006, followed by the residential and industrial sectors. Commercial sector shipments totaled 180,852 peak kilowatts and jumped at a rate of 102 percent from 2005 to 2006. The residential sector totaled 95,815 peak kilowatts in 2006, about 28 percent over the previous year (Table 23). Electricity generation, which consists of both grid-interactive (those connected to the electric power grid)[3] and remote applications (those not connected), continues to be the predominant end use for PV cells and modules. In 2006, PV shipments to the electric generation market was about 86 percent of the total shipments, and was 51 percent more than in 2005. Shipments for other uses and into non-traditional markets also rose substantially in 2006.
Export shipments totaled 130,757 peak kilowatts in 2006, an increase of 41 percent from the 2005 level. The export market previously dominated by crystalline silicon modules/cells has been surpassed by thin-film modules/cells. Thin-film exports increased sharply to 69,718 peak kilowatts in 2006 from 32,000 peak kilowatts in 2005. The export market split was about 47 percent crystalline silicon and 53 percent thin-film modules/cells (Table 2.24). Shipments to Europe represented 83.5 percent of total U.S. exports, with Germany remaining the predominant importer of cells and modules, taking 80,583 peak kilowatts, or 62 percent of U.S. export shipments in 2006 (Table 2.25). Spain has replaced the Netherlands as the second-largest recipient of U.S. PV cells and modules, accounting for 15,241 peak kilowatts, or close to 12 percent of U.S. export shipments in 2006. Strong government financial support programs for renewable energy in these countries, especially Germany, are largely responsible for increased U.S. exports.
Shipments of complete PV systems increased nearly 81 percent from 37,115 systems in 2005 to 67,172 systems in 2005 (Table 2.26). The increase was heavily influenced by the innovative flexible, foldable, portable thin-film system. The total revenue of completed systems surged to $192.9 million, and total peak kilowatts jumped from 6,583 in 2005 to 28,099 in 2005.
Employment in the PV-related activities totaled 4,028 person-years in 2006, an increase of about 26 percent from 2005 (Table 2.27). However, the average employment per company was 98 person-years in 2006, compared with 110 person-years in 2005, as a number of new companies reported shipping PV cells and modules during 2006.
The PV industry is actively promoting new products. Fourteen companies expect to introduce new crystalline silicon products in 2007, and 6 companies plan to introduce new thin-film products to the industry during 2007. Four companies plan to produce new concentrator photovoltaic (CPV) products, three more than the previous year (Table 2.28). Many companies engaged in the manufacture and/or importation of PV modules and cells reported that they are also involved in other photovoltaic-related activities (Table 2.29). Of the 41 total companies, 16 companies were involved in cell manufacturing, 26 companies in module or systems design, and 18 were active in developing module prototypes.
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