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    The Solar Car Book
    A complete kit for making a cool solar racecar. Everything is included: wheels, axles, motors, wires and a genuine one-volt solar cell.

    Scientists and Inventors

    Scientists and Inventors
    Photovoltaics Projects & Experiments

    Photovoltaic Technologies & Applications

    Photovoltaic 'tree' in Styria, Austria
    Photovoltaic 'tree' in Styria, Austria
    Photovoltaics, and PV for short, is a technology that converts light directly into electricity. Photovoltaics is also the field of study relating to this technology and there are many research institutes devoted to work on photovoltaics.[1][2] Due to the growing need for solar energy, the manufacture of solar cells and solar photovoltaic array has expanded dramatically in recent years.[3][4][5] Photovoltaic production has been doubling every two years, increasing by an average of 48 percent each year since 2002, making it the world’s fastest-growing energy technology. At the end of 2007, according to preliminary data, cumulative global production was 12,400 megawatts.[6] Roughly 90% of this generating capacity consists of grid-tied electrical systems. Such installations may be ground-mounted (and sometimes integrated with farming and grazing)[7] or building integrated.[8] Financial incentives, such as preferential feed-in tariffs for solar-generated electricity and net metering, have supported solar PV installations in many countries including Germany, Japan, and the United States.[9]

    Solar photovoltaics provided 0.04% of the world's Total Primary Energy Supply (TPES) for the year 2004, at a rate of growth to reach 0.08% by the end of 2006. [10]

    Contents

    Current development

    Photovoltaic cells produce electricity directly from sunlight
    Photovoltaic cells produce electricity directly from sunlight
    Average solar irradiance, watts per square metre. Note that this is for a horizontal surface, whereas solar panels are normally propped up at an angle and receive more energy per unit area. The small black dots show the area of solar panels needed to generate all of the worlds energy using 8% eff. PVs.
    Average solar irradiance, watts per square metre. Note that this is for a horizontal surface, whereas solar panels are normally propped up at an angle and receive more energy per unit area. The small black dots show the area of solar panels needed to generate all of the worlds energy using 8% eff. PVs.
    Map of solar electricity potential in Europe
    Map of solar electricity potential in Europe

    Photovoltaics is best known as a method for generating solar power by using solar cells packaged in photovoltaic modules, often electrically connected in multiples as solar photovoltaic arrays to convert energy from the sun into electricity. To explain the photovoltaic solar panel more simply, photons from sunlight knock electrons into a higher state of energy, creating electricity.

    Photovoltaics can refer to the field of study relating to this technology, and the term photovoltaic denotes the unbiased operating mode of a photodiode in which current through the device is entirely due to the transduced light energy. Virtually all photovoltaic devices are some type of photodiode.

    Solar cells produce direct current electricity from light, which can be used to power equipment or to recharge a battery. The first practical application of photovoltaics was to power orbiting satellites and other spacecraft and pocket calculators, but today the majority of photovoltaic modules are used for grid connected power generation. In this case an inverter is required to convert the DC to AC. There is a smaller market for off grid power for remote dwellings, roadside emergency telephones, remote sensing, and cathodic protection of pipelines.

    Cells require protection from the environment and are packaged usually behind a glass sheet. When more power is required than a single cell can deliver, cells are electrically connected together to form photovoltaic modules, or solar panels. A single module is enough to power an emergency telephone, but for a house or a power plant the modules must be arranged in arrays. Although the selling price of modules is still too high to compete with grid electricity in most places, significant financial incentives in Japan and then Germany triggered a huge growth in demand, followed quickly by production. Although module prices rose and plateaued[11], it is expected that costs and prices will fall to 'grid parity' in many places around 2010.

    Many corporations and institutions are currently developing ways to increase the practicality of solar power. While private companies conduct much of the research and development on solar energy, colleges and universities and institutes also work on solar-powered devices. Most research is being carried out in Germany, Japan, USA and Australia. Solar power has received less research funding than other sources, but is seen as the most likely largest source of electricity in 15 years in the United States. [12]

    The most important issue with solar panels is capital cost (installation and materials). Because of much increased demand, the price of silicon has risen and shortages occurred in 2005 and 2006. Newer alternatives to standard crystalline silicon modules including casting wafers instead of sawing [13], thin film (CdTe[14], CIGS[15], amorphous Si[16], microcrystalline Si), concentrator modules, 'Sliver' cells, and continuous printing processes. Due to economies of scale solar panels get less costly as people use and buy more — as manufacturers increase production to meet demand, the cost and price is expected to drop in the years to come. As of early 2006, the average cost per installed watt for a residential sized system was about USD 6.50 to USD 7.50, including panels, inverters, mounts, and electrical items.[17] In 2007 investors began offering free solar panel installation in return for a 25 year contract to purchase electricity at a fixed price, normally set at or below current electric rates.[1][18][19]

    A new photovoltaic "thin film" technology being pioneered by Californian company Nanosolar allows cells to be mass produced by printing them on to aluminium film at a fraction of the cost of existing techniques. At December 2007 the company claims it can achieve costs of USD $0.99 a watt which would be comparable to coal produced electricity. [20]

    Commercial production of roll-to-roll thin film technology, commenced on 2007 in Cardiff Wales, by a company called "G24 Innovations", owned in part by the Ecole Polytechnique Fédérale de Lausanne (EPFL), which is the source for some of its technology (Dye-sensitized solar cells). It claims that its products "...incorporate raw materials that are both inexpensive and effectively limitless..." and that it has a current production capability of 30MW.

    A less common form of the technologies is thermophotovoltaics, in which the thermal radiation from some hot body other than the sun is utilized. Photovoltaic devices are also used to produce electricity in optical wireless power transmission.

    Worldwide installed photovoltaic totals

    See also: Deployment of solar power to energy grids

    World solar photovoltaic (PV) market installations reached a record high of 1.7 gigawatts peak (GWp) in 2006.[21]

    The three leading countries (Germany, Japan and the USA) represent nearly 89% of the total worldwide PV installed capacity. On Wed 01 Aug 2007, word was published of construction of a production facility in China, which is projected to be one of the largest wafer factories in the world, with an annual capacity of around 1,500MW.[22]

    Germany was the fastest growing major PV market in the world during 2005 and 2006. In 2006, nearly 1GWp of PV was installed. The German PV industry generates over 10,000 jobs in production, distribution and installation. By the end of 2006, nearly 88% of all solar PV installations in the EU were in grid-tied applications in Germany. The balance is off-grid (or stand alone) systems.[23] Photovoltaic power capacity is measured as maximum power output under standardized test conditions (STC) in "Wp" (Watts peak).[24] The actual power output at a particular point in time may be less than or greater than this standardized, or "rated," value, depending on geographical location, time of day, weather conditions, and other factors.[25] Solar photovoltaic array capacity factors are typically under 25%, which is lower than many other industrial sources of electricity.[26] Therefore the 2006 installed base peak output would have provided an average output of 1.2 GW (assuming 20% × 5,862 MWp). This represented 0.06 percent of global demand at the time.[27]

    Produced, Installed & Total Photovoltaic Peak Power Capacity (MWp) as of the end of 2006
    #  ↓ Country or Region  ↓ Report
    Nat. Int.  ↓
    Cells
    Produced  ↓
    Δ
    Off grid  ↓
    Δ
    On grid  ↓
    2006
    Installed  ↓
    Σ
    Off grid  ↓
    Σ
    On grid  ↓
    2006
    Total  ↓
    Total
    Wp/capita  ↓
    Mod.Price
    USD/Wp  ↓
    Insolation
    kW·h/kWp·yr  ↓
    Flag of World World Σ 1,866.1 97.14 1,452 1,549 712.3 5,150 5,862 0.879 3.14-14.0 0800-2902
    Flag of Europe European Union Σ 653.7 16.57 1,032 1,049 111.9 3,108 3,220 6.533 3.8-10.1 0800-2200
    1 Flag of Germany Germany [28] [29] 514.0 3 950 953 32 2,831 2,863 34.781 5-6.6 [30]1000-1300
    2 Flag of Japan Japan [31] [29] 919.8 1.531 285.1 286.6 88.59 1,620 1,709 13.374 3.7 1200-1600
    3 Flag of the United States United States [32] [29] 201.6 37 108 145 270 354 624 2.058 3.75 [30]0900-2150
    4 Flag of Spain Spain ? [29] 75.3 9.1 51.4 60.5 17.8 100.4 118.2 2.620 3.8-5.6 1600-2200
    5 Flag of the People's Republic of China China ? [29] 15 15 73 73 0.055 1300-2300
    6 Flag of Australia Australia [33] [29] 36.0 7.576 2.145 9.721 60.536 9.765 70.301 3.327 5.6-6.8 [34]1450-2902
    7 Flag of the Netherlands Netherlands [35] [29] 18.0 0.278 1.243 1.521 5.713 46.992 52.705 3.217 4.1-5.6 1000-1200
    8 Flag of Italy Italy [36] [29] 11.0 0.5 12 12.5 12.8 37.2 50 0.846 4-4.5 1400-2200
    9 Flag of France France ? [29] 33.5 1.478 9.412 10.89 21.554 22.379 43.933 0.685 4-6.4 1100-2000
    10 Flag of South Korea South Korea [37] [29] 18.0 0.28 20.929 21.209 5.943 28.79 34.733 0.716 4.4-4.8 1500-1600
    11 Flag of Thailand Thailand ? [29] 6 6 30 30 0.477 [28] 3.14 2200-2400
    12 Flag of Switzerland Switzerland [38] [29] 0.15 2.5 2.65 3.4 26.3 29.7 3.955 4-4.2 1200-2000
    13 Flag of Austria Austria ? [29] 0.274 1.29 1.564 3.169 22.416 25.585 3.076 4.5-5.4 1200-2000
    14 Flag of Luxembourg Luxembourg ? [39] 0.042 0.042 23.603 23.603 50.542 1100-1200
    15 Flag of Canada Canada [40] [29] 3.354 0.384 3.738 18.976 1.508 20.484 0.620 4.7 0900-1750
    16 Flag of Mexico Mexico ? [29] 0.938 0.116 1.054 19.592 0.155 19.747 0.185 6.8-8.1 1700-2600
    17 Flag of the United Kingdom United Kingdom ? [29] 1.9 0.158 3.007 3.165 1.082 12.96 14.042 0.232 4.6-7.2 0900-1300
    18 Flag of India India ? [29] 6 6 12 12 0.010 1700-2500
    19 Flag of Norway Norway [41] [29] 37.0 0.35 0.053 0.403 7.54 0.128 7.668 1.624 14.0 0800-0950
    20 Flag of Greece Greece ? [39] 1.049 0.201 1.25 5.081 1.613 6.694 0.601 1500-1900
    21 Flag of Sweden Sweden [42] [29] 0.302 0.301 0.613 4.285 0.555 4.84 0.529 4.1-8.8 0900-1050
    22 Flag of Belgium Belgium ? [39] 2.103 2.103 0.053 4.108 4.161 0.398 1000-1200
    23 Flag of Finland Finland ? [39] 0.064 0.064 3.779 0.287 4.066 0.768 0800-1050
    24 Flag of Bangladesh Bangladesh ? [29] 1.134 1.134 >3.6 >3.6 >0.023 1900-2100
    25 Flag of Sri Lanka Sri Lanka ? [29] 0.65 0.65 3.6 3.6 0.187 2200-2400
    26 Flag of Portugal Portugal ? [39] 0.25 0.227 0.477 2.691 0.775 3.466 0.326 1600-2200
    27 Flag of Denmark Denmark [43] [29] 0.04 0.21 0.25 0.335 2.565 2.9 0.531 6.7-10.1 0900-1100
    28 Flag of Nepal Nepal ? [29] 0.333 0.333 2.333 2.333 0.083 1900-2200
    29 Flag of Israel Israel [44] [29] 0.275 0.275 1.294 0.025 1.319 0.183 5.4 2200-2400
    30 Flag of Cyprus Cyprus ? [39] 0.08 0.44 0.52 0.45 0.526 0.976 1.142 1900-2200
    31 Flag of the Czech Republic Czech Republic ? [39] 0.241 0.241 0.15 0.621 0.771 0.075 1100-1300
    32 Flag of Malaysia Malaysia [45] ? 0.00452 0.00452 0.486 0.486 0.018 5.94 1950-2250
    33 Flag of Poland Poland ? [39] 0.027 0.087 0.114 0.319 0.112 0.431 0.011 1100-1300
    34 Flag of Slovenia Slovenia ? [39] 0.183 0.183 0.098 0.265 0.363 0.180 1300-1500
    35 Flag of Ireland Ireland ? [39] 0.3 0.3 0.070 1000-1200
    36 Flag of Hungary Hungary ? [39] 0.09 0.065 0.155 0.015 1300-1500
    37 Flag of Slovakia Slovakia ? [39] 0.004 0.004 0.064 0.064 0.012 1200-1400
    38 Flag of Malta Malta ? [39] 0.033 0.033 0.048 0.048 0.118 2100-2200
    39 Flag of Lithuania Lithuania ? [39] 0.023 0.023 0.04 0.04 0.012 1100-1300
    40 Flag of Estonia Estonia ? [39] 0.005 0.005 0.008 0.008 0.006 1100-1200
    41 Flag of Latvia Latvia ? [39] 0.001 0.001 0.006 0.006 0.003 1100-1300
    # Country or Region Report
    Nat. Int.
    Cells
    Produced
    Δ
    Off grid
    Δ
    On grid
    2006
    Installed
    Σ
    Off grid
    Σ
    On grid
    2006
    Total
    Total
    Wp/capita
    Mod.Price
    USD/Wp
    Insolation
    kW·h/kWp·yr

    Notes: While National Report(s) may be cited as source(s) within an International Report, any contradictions in data are resolved by using only the most recent report's data. Exchange rates represent the 2006 annual average of daily rates (OECD Main Economic Indicators June 2007)
    Module Price:Lowest: 2.5 EUR/Wp[29] (2.83 USD/Wp[46]) in Germany 2003.Highest: 90 NOK/Wp[41] (14.0 USD/Wp[46]) in Norway 2006
    Partly Defunct Sources: PV Power (2007-June), [39], [47], IEA PVPS website.

    Applications of PV

    11 MW Serpa solar power plant in Portugal
    11 MW Serpa solar power plant in Portugal
    Main article: Photovoltaic system

    PV power stations

    The Table below provides details of some of the largest photovoltaic plants in the world. As shown, Germany has a 10 MW photovoltaic system in Pocking, and a 12 MW plant in Arnstein, with a 40 MW power station planned for Muldentalkreis. Portugal has an 11 MW plant in Serpa and a 62 MW power station is planned for Moura. A 20 MW power plant is also planned for Beneixama, Spain. The photovoltaic power station proposed for Australia will use heliostat concentrator technology and will not come into service until 2010. It is expected to have a capacity of 154 MW when it is completed in 2013.[48]

    World's largest PV power plants[49]
    DC Peak Power Location Description GW·h/year
    154 MW** Mildura/Swan Hill, Australia[50] Heliostat Concentrator Photovoltaic technology
    (see Solar power station in Victoria)
    270
    62 MW** Moura, Portugal[51] [52] BP, Yingli Green Energy
    (see Girassol solar power plant)
    88
    40 MW* Muldentalkreis, Germany[53] [54] 550,000 thin-film modules (First Solar) (see Waldpolenz Solar Park) 40
    20 MW Beneixama, Spain[55][56][57] Tenesol, Aleo and Solon solar modules with Q-Cells cells (see Beneixama photovoltaic power plant 30
    14 MW Nellis AFB, Nevada[58] PowerLight PowerTracker system
    (see Nellis Solar Power Plant)
    30
    13.8 MW Salamanca, Spain[59] (see Planta Solar de Salamanca)
    12.7 MW Murcia, Spain[59] (see Lobosillo Solar Park)
    12 MW Arnstein, Germany[60] 1464 SOLON mover
    (see Erlasee Solar Park)
    14
    11 MW Serpa, Portugal[61] 52,000 solar modules
    (see Serpa solar power plant)
    n.a.
    10 MW Pocking, Germany 57,912 solar modules
    (see Pocking Solar Park)
    11.5
    9.5 MW Milagro, Spain (see Monte Alto photovoltaic power plant) 14
    * Project finish date: 2009; ** Under construction, as of December 2007

    PV in buildings

    Photovoltaic solar panels on a house roof.
    Photovoltaic solar panels on a house roof.

    Building-integrated photovoltaics (BIPV) are increasingly incorporated into new domestic and industrial buildings as a principal or ancillary source of electrical power,[62] and are one of the fastest growing segments of the photovoltaic industry.[63] Typically, an array is incorporated into the roof or walls of a building, and roof tiles with integrated PV cells can now be purchased. Arrays can also be retrofitted into existing buildings; in this case they are usually fitted on top of the existing roof structure. Alternatively, an array can be located separately from the building but connected by cable to supply power for the building.

    Where a building is at a considerable distance from the public electricity supply (or grid) - in remote or mountainous areas – PV may be the preferred possibility for generating electricity, or PV may be used together with wind, diesel generators and/or hydroelectric power. In such off-grid circumstances batteries are usually used to store the electric power.

    PV in transport

    PV has traditionally been used for auxiliary power in space. PV is rarely used to provide motive power in transport applications, but is being used increasingly to provide auxiliary power in boats and cars.

    PV in standalone devices

    Solar powered parking meter.
    Solar powered parking meter.

    PV has been used for many years to power calculators and novelty devices. Improvements in integrated circuits and low power LCD displays make it possible to power a calculator for several years between battery changes, making solar calculators less common. In contrast, solar powered remote fixed devices have seen increasing use recently, due to increasing cost of labour for connection of mains electricity or a regular maintenance programme. In particular, parking meters [64], emergency telephones [65], and temporary traffic signs.

    Economics of PV

    See also: Renewable energy commercialization
    US average daily solar energy insolation received by a latitude tilt photovoltaic cell.
    US average daily solar energy insolation received by a latitude tilt photovoltaic cell.

    Power costs

    The PV industry is beginning to adopt levelized cost of energy (LCOE) as the unit of cost. The results of a sample calculation can be found on pp. 52, 53 of the 2007 DOE report describing the plans for solar power 2007-2011 [2]. For a 10 MW plant in Phoenix, AZ, the LCOE is estimated at $0.15 to 0.22/kWh.

    The table below is a pure mathematical calculation. It illustrates the calculated total cost in US cents per kilowatt-hour of electricity generated by a photovoltaic system as function of the investment cost and the efficiency, assuming some accounting parameters such as cost of capital and depreciation period. The row headings on the left show the total cost, per peak kilowatt (kWp), of a photovoltaic installation. The column headings across the top refer to the annual energy output in kilowatt-hours expected from each installed peak kilowatt. This varies by geographic region because the average insolation depends on the average cloudiness and the thickness of atmosphere traversed by the sunlight. It also depends on the path of the sun relative to the panel and the horizon.

    Panels can be mounted at an angle based on latitude, which can add to total energy output[66]. Solar tracking can also be utilized to access even more perpendicular sunlight, thereby raising the total energy output. The calculated values in the table reflect the total cost in cents per kilowatt-hour produced. They assume a 10% total capital cost (for instance 4% interest rate, 1% operating and maintenance cost, and depreciation of the capital outlay over 20 years).

    Table showing average cost in cents/kWh over 20 years for solar power panels
    Insolation
    Cost 2400
    kWh/kWp•y
    2200
    kWh/kWp•y
    2000
    kWh/kWp•y
    1800
    kWh/kWp•y
    1600
    kWh/kWp•y
    1400
    kWh/kWp•y
    1200
    kWh/kWp•y
    1000
    kWh/kWp•y
    800
    kWh/kWp•y
    200 $/kWp 0.8 0.9 1.0 1.1 1.3 1.4 1.7 2.0 2.5
    600 $/kWp 2.5 2.7 3.0 3.3 3.8 4.3 5.0 6.0 7.5
    1000 $/kWp 4.2 4.5 5.0 5.6 6.3 7.1 8.3 10.0 12.5
    1400 $/kWp 5.8 6.4 7.0 7.8 8.8 10.0 11.7 14.0 17.5
    1800 $/kWp 7.5 8.2 9.0 10.0 11.3 12.9 15.0 18.0 22.5
    2200 $/kWp 9.2 10.0 11.0 12.2 13.8 15.7 18.3 22.0 27.5
    2600 $/kWp 10.8 11.8 13.0 14.4 16.3 18.6 21.7 26.0 32.5
    3000 $/kWp 12.5 13.6 15.0 16.7 18.8 21.4 25.0 30.0 37.5
    3400 $/kWp 14.2 15.5 17.0 18.9 21.3 24.3 28.3 34.0 42.5
    3800 $/kWp 15.8 17.3 19.0 21.1 23.8 27.1 31.7 38.0 47.5
    4200 $/kWp 17.5 19.1 21.0 23.3 26.3 30.0 35.0 42.0 52.5
    4600 $/kWp 19.2 20.9 23.0 25.6 28.8 32.9 38.3 46.0 57.5
    5000 $/kWp 20.8 22.7 25.0 27.8 31.3 35.7 41.7 50.0 62.5

    In Italy, PV power has been cheaper than retail grid electricity since 2006. One kWh in Italy costs 21.08  €-cents. [3] Italy has an average of 1,600 kWh/m² sun power per year (Sicily has even more, at 1,800 kWh/m²).

    Financial incentives

    The political purpose of incentive policies for PV is to grow the industry even where the cost of PV is significantly above grid parity, to allow it to achieve the economies of scale necessary to reach grid parity. The policies are implemented to promote national energy independence, high tech job creation and reduction of CO2 emissions.

    Three incentive mechanisms are used (often in combination):

    • investment subsidies: the authorities refund part of the cost of installation of the system,
    • Feed-in Tariffs (FIT)/Net metering: the electricity utility buys PV electricity from the producer under a multiyear contract at a guaranteed rate.
    • Renewable Energy Certificates ("RECs")

    With investment subsidies, the financial burden falls upon the taxpayer, while with feed-in tariffs the extra cost is distributed across the utilities' customer bases. While the investment subsidy may be simpler to administer, the main argument in favour of feed-in tariffs is the encouragement of quality. Investment subsidies are paid out as a function of the nameplate capacity of the installed system and are independent of its actual power yield over time, thus rewarding the overstatement of power and tolerating poor durability and maintenance. Some electric companies offer rebates to their customers, such as Austin Energy in Texas, which offers $4.50/watt installed up to $13,500.[67]

    With feed-in tariffs, the financial burden falls upon the consumer. They reward the number of kilowatt-hours produced over a long period of time, but because the rate is set by the authorities, it may result in perceived overpayment. The price paid per kilowatt-hour under a feed-in tariff exceeds the price of grid electricity. Net metering" refers to the case where the price paid by the utility is the same as the price charged.

    Where price setting by supply and demand is preferred, RECs can be used. In this mechanism, a renewable energy production or consumption target is set, and the consumer or producer is obliged to purchase renewable energy from whoever provides it the most competitively. The producer is paid via an REC. In principle this system delivers the cheapest renewable energy, since the lowest bidder will win. However uncertainties about the future value of energy produced are a brake on investment in capacity, and the higher risk increases the cost of capital borrowed.

    The Japanese government through its Ministry of International Trade and Industry ran a successful programme of subsidies from 1994 to 2003. By the end of 2004, Japan led the world in installed PV capacity with over 1.1 GW.[4]

    In 2004, the German government introduced the first large-scale feed-in tariff system, under a law known as the 'EEG' (Erneuerbare Energien Gesetz) which resulted in explosive growth of PV installations in Germany. At the outset the FIT was over 3x the retail price or 8x the industrial price. The principle behind the German system is a 20 year flat rate contract. The value of new contracts is programmed to decrease each year, in order to encourage the industry to pass on lower costs to the end users. The programme has been more successful than expected with over 1GW installed in 2006, and political pressure is mounting to decrease the tariff to lessen the future burden on consumers.

    Subsequently Spain, Italy, Greece and France introduced feed-in tariffs. None have replicated the programmed decrease of FIT in new contracts though, making the German incentive relatively less and less attractive compared to other countries. The French FIT offers a uniquely high premium (EUR 0.55/kWh) for building integrated systems. California, Greece, France and Italy have 30-50% more insolation than Germany making them financially more attractive.

    In 2006 California approved the 'California Solar Initiative', offering a choice of investment subsidies or FIT for small and medium systems and a FIT for large systems. The small-system FIT of $0.39 per kWh (far less than EU countries) expires in just 5 years, and the alternate "EPBB" residential investment incentive is modest, averaging perhaps 20% of cost. All California incentives are scheduled to decrease in the future depending as a function of the amount of PV capacity installed.

    At the end of 2006, the Ontario Power Authority (Canada) began its Standard Offer Program, the first in North America for small renewable projects (10MW or less). This guarantees a fixed price of $0.42 CDN per kWh over a period of twenty years. Unlike net metering, all the electricity produced is sold to the OPA at the SOP rate. The generator then purchases any needed electricity at the current prevailing rate (e.g., $0.055 per kWh). The difference should cover all the costs of installation and operation over the life of the contract.

    The price per kilowatt hour or per peak kilowatt of the FIT or investment subsidies is only one of three factors that stimulate the installation of PV. The other two factors are insolation (the more sunshine, the less capital is needed for a given power output) and administrative ease of obtaining permits and contracts.

    Unfortunately the complexity of approvals in California, Spain and Italy has prevented comparable growth to Germany even though the return on investment is better.

    In some countries, additional incentives are offered for BIPV compared to stand alone PV.

    • France + EUR 0.25/kWh (EUR 0.30 + 0.25 = 0.55/kWh total)
    • Italy + EUR 0.04-0.09 kWh
    • Germany + EUR 0.05/kWh (facades only)

    Environmental impacts

    Unlike fossil fuel based technologies, solar power does not lead to any harmful emissions during operation, but the production of the panels leads to some amount of pollution. This is often referred to as the energy input to output ratio. In some analysis, if the energy input to produce it is higher than the output it produces it can be considered environmentally more harmful than beneficial. Also, placement of photovoltaics affects the environment. If they are located where photosynthesizing plants would normally grow, they simply substitute one potentially renewable resource (biomass) for another. It should be noted, however, that the biomass cycle converts solar radiation energy to electrical energy with significantly less efficiency than photovoltaic cells alone. And if they are placed on the sides of buildings (such as in Manchester) or fences, or rooftops (as long as plants would not normally be placed there), or in the desert they are purely additive to the renewable power base.

    Greenhouse gases

    Life cycle greenhouse gas emissions are now in the range of 25-32 g/kWh and this could decrease to 15 g/kWh in the future.[68] For comparison, a combined cycle gas-fired power plant emits some 400 g/kWh and a coal-fired power plant 915 g/kWh and with carbon capture and storage some 200 g/kWh. Nuclear power emits 25 g/kWh on average; only wind power is better with a mere 11 g/kWh. Using renewable energy sources in manufacturing and transportation would drop photovoltaic emissions to zero.

    Cadmium

    One issue that has often raised concerns is the use of cadmium in Cadmium telluride (CdTe) modules (CdTe is only used in a few types of PV panels). Cadmium in its metallic form is a toxic substance that has the tendency to accumulate in ecological food chains. The amount of cadmium used in PV modules is relatively small (5-10 g/m²) and with proper emission control techniques in place the cadmium emissions from module production can be almost zero. Current PV technologies lead to cadmium emissions of 0.3-0.9 microgram/kWh over the whole life-cycle.[68] Most of these emissions actually arise through the use of coal power for the manufacturing of the modules, and coal and lignite combustion leads to much higher emissions of cadmium. Life-cycle cadmium emissions from coal is 3.1 microgram/kWh, lignite 6.2, and natural gas 0.2 microgram/kWh.

    Note that if electricity produced by photovoltaic panels were used to manufacture the modules instead of electricity from burning coal, cadmium emissions from coal power usage in the manufacturing process could be entirely eliminated.

    Energy Payback Time and Energy Returned on Energy Invested

    The energy payback time is the time required to produce an amount of energy as great as what was consumed during production. The energy payback time is determined from a life cycle analysis of energy.

    Another key indicator of environmental performance, tightly related to the energy payback time, is the ratio of electricity generated divided by the energy required to build and maintain the equipment. This ratio is called the energy returned on energy invested (EROEI). Of course, little is gained if it takes as much energy to produce the modules as they produce in their lifetimes. This should not be confused with the economic return on investment, which varies according to local energy prices, subsidies available and metering techniques.

    A review life cycle energy analysis of the three types of photovoltaic (PV) materials that make up the majority of the active solar market (single crystal silicon, polycrystalline silicon, and amorphous silicon) found that solar cells pay for themselves in terms of energy in a few years (1-5 years):

    • Crystalline silicon PV systems presently have energy pay-back times of 1.5-2 years for South-European locations and 2.7-3.5 years for Middle-European locations. For silicon technology clear prospects for a reduction of energy input exist, and an energy pay-back of 1 year may be possible within a few years.
    • Thin film technologies now have energy pay-back times in the range of 1-1.5 years (S.Europe).[68] With lifetimes of such systems of at least 30 years, the EROEI is in the range of 10 to 30.

    They thus generate enough energy over their lifetimes to reproduce themselves many times (6-31 reproductions, the EROEI is a bit lower) depending on what type of material, balance of system (or BOS), and the geographic location of the system. [69]

    Advantages

    • The 89 petawatts of sunlight reaching the earth's surface is plentiful - almost 6,000 times more - compared to the 15 terawatts of average power consumed by humans.[70] Additionally, solar electric generation has the highest power density (global mean of 170 W/m²) among renewable energies.[70]
    • Solar power is pollution free during use. Production end wastes and emissions are manageable using existing pollution controls. End-of-use recycling technologies are under development.[71]
    • Facilities can operate with little maintenance or intervention after initial setup.
    • Solar electric generation is economically superior where grid connection or fuel transport is difficult, costly or impossible. Examples include satellites, island communities, remote locations and ocean vessels.
    • When grid-connected, solar electric generation can displace the highest cost electricity during times of peak demand (in most climatic regions), can reduce grid loading, and can eliminate the need for local battery power for use in times of darkness and high local demand; such application is encouraged by net metering. Time-of-use net metering can be highly favorable to small photovoltaic systems.
    • Grid-connected solar electricity can be used locally thus reducing transmission/distribution losses (transmission losses were approximately 7.2% in 1995).[72]
    • Once the initial capital cost of building a solar power plant has been spent, operating costs are extremely low compared to existing power technologies.

    Disadvantages

    • Solar electricity is almost always more expensive than electricity generated by other sources.
    • Solar electricity is not available at night and is less available in cloudy weather conditions. Therefore, a storage or complementary power system is required.
    • Limited power density: Average daily insolation in the contiguous U.S. is 3-7 kW·h/m²[73][74][75] and on average lower in Europe.
    • Solar cells produce DC which must be converted to AC (using a grid tie inverter) when used in currently existing distribution grids. This incurs an energy loss of 4-12%.[76]

    Photovoltaics companies

    See also: List of photovoltaics companies

    Major photovoltaics companies include BP Solar, Yingli Green Energy, Kyocera, Q-Cells, Sanyo, Sharp Solar, SolarWorld, Motech, SunPower, and Suntech.[77][78]