Solar President Makes Appeal for Semicon Involvement
Aaron Hand, Executive Editor, Electronic Media -- PV Society, 7/19/2007
Initially aiming to generate involvement from the semiconductor manufacturing industry in his own sector, Rhone Resch, president of the Solar Energy Industries Association (Washington), asked a full house of attendees to raise their hands if they were already selling to the solar industry. A good many hands at the afternoon keynote went up, and Resch got confirmation of what is becoming increasingly apparent: The photovoltaics industry is one of the hottest new growth markets for semiconductor material and tool suppliers to pursue.
Granted, photovoltaics is not a new industry by any means. But with energy prices rising, consumers becoming more aware of and concerned about global warming, and western countries wanting to make a push to more energy independence and security, solar is gaining a more solid foundation. In his presentation, “Solar Energy: The Next Great Growth Opportunity for the Semiconductor Industry,” Resch detailed the incredible growth the industry has been experiencing over the past few years, and the further growth it will continue to see in upcoming years. The market has experienced a compound annual growth rate (CAGR) of 46% worldwide since 2000. In Japan and Germany, where the governments have created incentives, they have seen even more tremendous growth.
The United States, where photovoltaics was invented and where the technology has seen its greatest advances, has not yet realized the potential that the solar industry offers. But while worldwide CAGR is expected to be 36.5% through 2010, U.S. growth is expected to be more than 80% during the same period, Resch said.
| Rhone Resch, President of the Solar Energy Industries Association |
The traditional fossil fuel industry has been a huge boon for society, Resch noted, but it has become the largest source of greenhouse gas emissions and is no longer sustainable. Presently, solar energy accounts for only one-thirtieth of 1% of the electricity generated in the United States, with 52% of the country’s energy coming from coal. That indicates a huge growth potential for solar. “We certainly together can develop an industry that will rival, if not surpass, the fossil fuel industry,” Resch said.
In fact, many suppliers to the manufacturing industry have become deeply involved in supplying the solar industry. Certainly, polysilicon suppliers have had to jump in to fill the gap in supply that the tremendous demand has created. In 2006, for the first time, the solar industry used more polysilicon than the IC industry. And solar is going to continue to grow, with polysilicon supply for the industry expected to see a CAGR of 32% through 2010. “If you handle polysilicon, you’ve got to recognize solar in some capacity,” Resch told the audience.
Applied Materials (Santa Clara, Calif.) has been particularly active in the solar industry over the past few years, making large investments in the sector and winning several contracts for solar cell manufacturing equipment. Several other companies have jumped into the fray as well, recognizing the potential for selling their technologies, equipment and materials to the solar industry. “I think we’re just beginning to scratch the surface,” Resch said in an interview with Semiconductor International earlier this week. “I think when Applied Materials makes the jump into a new industry, it shows that it’s a real industry; that it’s now mature, and that it’s safe for others to jump in.”
Solar cell technology has some hurdles to overcome. Efficiencies are not where they should be, and will need to improve to make the technology cost-effective. “We need to take commercially available [efficiency] records and bring them up to lab records,” Resch said. “They need to be closer to 15-20% for all technologies.”
Consequently, solar is still a very expensive technology for consumers. Although prices are declining, solar energy is not near where it needs to be. But by 2015, solar will be a cheaper energy source than traditional electricity sources, at which point it will become a “no-brainer” for consumers, Resch said.
But solar will not grow without the help of the semiconductor industry, Resch contends, and he is urging the suppliers in our industry to get involved. “PV is here, and PV needs manufacturing solutions that I think should come from the semiconductor industry,” he said.
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