Soaring silver prices are hampering the solar industry’s ability to compete with fossil fuels.
Panel makers consume about 11 percent of the world’s supply of silver, the metal in solar cells that conducts electricity. The metal has appreciated 74 percent to $35.30 a troy ounce on average so far this year from $20.24 for last year.
Prices for solar cells have dropped about 27 percent this year and would be even lower if each panel didn’t require about 20 grams of silver, according to Bloomberg New Energy Finance. That’s pushing back the date when companies such as Solarworld AG (SWV) and LDK Solar Co. can deliver solar power at prices that are competitive with traditional energy.
“Global silver prices have gone up a lot, and solar cells use silver paste as the front-side contact material,” Shawn Qu, chief executive of Canadian Solar Inc. (CSIQ), which is based in China, said in an interview. “The increase of the silver costs will give us a challenge in efforts to reduce solar cell costs.”
Prices for photovoltaic solar panels were $1.49 a watt in June, compared with about $1.80 in January, New Energy Finance estimates, as manufacturers especially in China raised production and incentives were trimmed in Europe.
‘Headwind’
“Some companies are implementing measures to reduce silver consumption, but we believe rising silver prices could still act as a headwind,” Barclays Capital wrote in a note to clients.
The price of the silver paste that Canadian Solar uses to print circuits on the front of its solar cells more than tripled in the past year, Qu said. That adds about 3 cents to 4 cents a watt, or 2 percent, to the cost of the panels.
The company’s gross margins narrowed to about 15 percent in the first quarter from 17 percent in the prior quarter as the price of cells fell faster than the cost of production, the company based in Suzhou New District, China, reported in May.
A typical solar cell uses 0.10 grams of silver for each watt of generating capacity. That amounts to about 20 grams in a 200-watt panel, adding $23.52 to the cost of each panel, according to New Energy Finance. The cost for metal in each panel totals about 11 cents a watt, up from 5 cents a year ago, the London-based industry researcher estimates.
Slim Margins
Solar companies “have already seen their margins being reduced to next to nothing,” Jenny Chase, manager of New Energy Finance’s solar analysis, said in a report. “At these prices, silver accounts for around half of cell makers’ processing costs,” the roughly 18 cents it takes to turn a blank silicon wafer into a completed cell.
The surge in silver prices is squeezing margins for most solar companies, according to research by Barclays Capital. Silver prices reached a record high at $48.44 an ounce on April 28, and if it returns to that level it will account for 13 percent to 15 percent of the cost of producing each panel, the report said.
The global silver supply reached 1.06 billion ounces in 2010, up almost 15 percent from 922.2 million ounces in 2009, according to the Washington-based trade group Silver Institute.
Including advance purchases of the metal, solar companies consumed almost 11 percent of total silver production, according to Prismark Partners, a New York-based technology research company.
Solar companies and their suppliers are looking for ways to reduce the amount of silver used in cells. Canadian Solar’s Qu said his company is tweaking its manufacturing process to use thinner wiring on the front of solar cells.
Thin-Film Advantage
High silver prices may provide a competitive advantage to companies that make thin-film solar products such as First Solar Inc. (FSLR) A spokesman for Tempe, Arizona-based First Solar said the company’s cells are made with cadmium-telluride rather than the polysilicon used in typical photovoltaic cells, and do not use any silver.
The standard, 156-millimeter photovoltaic cell has about 280 milligrams of silver on the front, and a slight amount on the backside as well, said Walt Cheng, global business director for DuPont Microcircuit Materials, the unit of DuPont Co. that produces the silver metalization paste used to make the wiring.
The price of silver makes up 70 percent to 90 percent of the cost of DuPont’s paste, and the company passes on to customers fluctuations in the metal’s value. DuPont expects to introduce this year a version of its Solamet paste that reduces silver content by about 10 percent, and may eventually reach 20 percent.
“We are accelerating R&D to reduce silver content and investigate how we can effectively transfer technology internally from DuPont’s products in the automotive and display industries into photovoltaics,” Cheng said.
Smaller panel makers may have the most to lose from high silver costs.
“Solar manufacturers that are large-scale and have high- end tech can manage rising prices pretty well,” Cheng said. “Customers that are second and third tier have a harder time with higher silver prices. The strong module makers will get stronger.”
2011年6月14日星期二
Sustainability Board Holds Energy Forum
Members of the public were invited to learn about alternative energy at a forum hosted Monday night by the New Castle Sustainability Advisory Board.
The forum, held at the Chappaqua Library, was called “Save Money and The Environment," and hosted by board member Steven Wolk. It featured a panel of energy experts from Blueprint Energy Group, Earth to Air Systems and Mercury Solar Systems.
The focus of the meeting was to introduce and answer the public’s questions about three types of alternative energy being made available to homeowners. In presentations, the audience was given information about Geothermal Systems, Solar PV (photovoltaic) technology and micro CHP (Combined Heat and Power) systems.
“By being here tonight, you are saying you are interested in saving the environments for future generations,” said Wolk. “There is no such thing as clean coal.” He argued that fossil fuels cost taxpayers financially, in the way of health care
John Kulacz from Earth To Air Systems talked about geothemermal power.
In a geothermal system, the Earth’s crust is used as a heat transfer. During the summer, your house would be cooled by sending heat down into the ground, while in the winter, heat would be brought up in a closed loop system that requires no water, anti-freeze or water pumps. It can be hooked up to your current heating system.
“Al Gore chose Geothermal over any other system in the world," Kulacz said. “It’s the least understood technology.”
It was explained that a geothermal system can reduce heating and cooling costs by 80 percent and can last 25 or more years. In addition, this system can raise your home’s value and comes with a 30-percent tax credit from the Federal government. However, a geothermal system is not cheap to install. It is estimated that a newly installed system with all new duct work would cost around $60,000. However, according to Kulacz, the system will pay itself back with energy savings in three to five years.
According to Ben Waller from Mercury Solar Systems, the Solar PV system, out of the three presented had the biggest tax incentive with a 30-percent tax credit from the Federal government and a 25-percent tax credit from the state. Solar energy is so popular that there is a push to get The New York Solar Jobs Act of 2011 finalized before the end of the legislative session.
In a Solar PV system, solar panels take light from the sun and convert it to energy. However, the energy from the sun converts into direct current (DC) energy so it is sent down to a converter to change it into alternating aurrent (AC) that is used in the house. In the solar PV system, you would still be connected the power grid for times when there is no sunlight.
The weakness, however, of a Solar PV system in the Westchester area is the multitude of trees and shade.
One audience member was concerned about a strong storm blowing the solar panels off the roof.
“The house will blow away before the panels will,” responded Waller. The panels are rated for 120mph strong winds, those equal of a category 4 hurricane.
The last presentation came from Matthew Fairy of Blue Project Energy Group about micro CHP or Co-Gen systems. In a CHP system, heat and energy are generated in one process, by using the heat generated by making the energy, rather then letting it go to waste. In essence, a CHP system is like a personal power plant. It was stated that these systems have an 85-percent efficiency rate.
“Transmission wastes about 50-70 percent of the energy produced at the power plant.” Fairy said. “Grand Central Station has been using a Co-Gen [CHP] system for years now.”
The meeting was very informative and members of the community like Rick Waller enjoyed it.
“I will be honest, I was expected to be bored and I wasn’t," said Rick Waller, who is Ben Waller's father. "It was really interesting stuff."
He added, “If I was a young home owner and I had a payback period, I would go for it.”
The forum, held at the Chappaqua Library, was called “Save Money and The Environment," and hosted by board member Steven Wolk. It featured a panel of energy experts from Blueprint Energy Group, Earth to Air Systems and Mercury Solar Systems.
The focus of the meeting was to introduce and answer the public’s questions about three types of alternative energy being made available to homeowners. In presentations, the audience was given information about Geothermal Systems, Solar PV (photovoltaic) technology and micro CHP (Combined Heat and Power) systems.
“By being here tonight, you are saying you are interested in saving the environments for future generations,” said Wolk. “There is no such thing as clean coal.” He argued that fossil fuels cost taxpayers financially, in the way of health care
John Kulacz from Earth To Air Systems talked about geothemermal power.
In a geothermal system, the Earth’s crust is used as a heat transfer. During the summer, your house would be cooled by sending heat down into the ground, while in the winter, heat would be brought up in a closed loop system that requires no water, anti-freeze or water pumps. It can be hooked up to your current heating system.
“Al Gore chose Geothermal over any other system in the world," Kulacz said. “It’s the least understood technology.”
It was explained that a geothermal system can reduce heating and cooling costs by 80 percent and can last 25 or more years. In addition, this system can raise your home’s value and comes with a 30-percent tax credit from the Federal government. However, a geothermal system is not cheap to install. It is estimated that a newly installed system with all new duct work would cost around $60,000. However, according to Kulacz, the system will pay itself back with energy savings in three to five years.
According to Ben Waller from Mercury Solar Systems, the Solar PV system, out of the three presented had the biggest tax incentive with a 30-percent tax credit from the Federal government and a 25-percent tax credit from the state. Solar energy is so popular that there is a push to get The New York Solar Jobs Act of 2011 finalized before the end of the legislative session.
In a Solar PV system, solar panels take light from the sun and convert it to energy. However, the energy from the sun converts into direct current (DC) energy so it is sent down to a converter to change it into alternating aurrent (AC) that is used in the house. In the solar PV system, you would still be connected the power grid for times when there is no sunlight.
The weakness, however, of a Solar PV system in the Westchester area is the multitude of trees and shade.
One audience member was concerned about a strong storm blowing the solar panels off the roof.
“The house will blow away before the panels will,” responded Waller. The panels are rated for 120mph strong winds, those equal of a category 4 hurricane.
The last presentation came from Matthew Fairy of Blue Project Energy Group about micro CHP or Co-Gen systems. In a CHP system, heat and energy are generated in one process, by using the heat generated by making the energy, rather then letting it go to waste. In essence, a CHP system is like a personal power plant. It was stated that these systems have an 85-percent efficiency rate.
“Transmission wastes about 50-70 percent of the energy produced at the power plant.” Fairy said. “Grand Central Station has been using a Co-Gen [CHP] system for years now.”
The meeting was very informative and members of the community like Rick Waller enjoyed it.
“I will be honest, I was expected to be bored and I wasn’t," said Rick Waller, who is Ben Waller's father. "It was really interesting stuff."
He added, “If I was a young home owner and I had a payback period, I would go for it.”
2011年6月8日星期三
New Albuquerque lab speeds up testing; certification of solar panels
It's torture for the subjects: From being smacked with 50 mph ice chunks to sweating it out in a 185-degree chamber for hours at a time.
No alarm necessary — the subjects are lifeless solar panels. But, in time, their ordeal should pay off for everyone involved.
The CFV Solar Test Laboratory opened last month at Mesa del Sol in Albuquerque, offering testing and certification services for manufacturers of solar panels to more quickly, and at lower cost, enter worldwide markets.
Unique in New Mexico, the lab is one of the few in the country that can certify for both North American and international standards.
"You not only have us becoming a production location, but now the testing and certification location for at least part of the world," said Bernalillo County Commissioner Art DeLaCruz, who worked with the county Economic Development Department on efforts to land the lab at Mesa del Sol. "That's critical because it continues to send out the message that we are the place for solar."
The state of New Mexico contributed $750,000 and Bernalillo County $250,000 to support the lab and the Fraunhofer Research and Development Facility, which is located together with the lab in the former Advent Solar complex. The two companies will evenly share the money.
CFV rents about 28,000 square feet of the building for offices and an indoor lab with a climate chambers and a solar simulator for performance measurements. It also has an outdoor testing area with different trackers and fixed racks to test various PV technologies.
"For all intents and purposes, we are open for business," said CFV manager Martin Plass. "I would like to process a full load (of orders) within the next two to three months."
The lab is jointly owned by four groups — CSA Group, VDE Testing and Certification Institute, Fraunhofer Institute for Solar Energy Systems and Fraunhofer USA Center for Sustainable Energy Systems.
"Solar panels are high-voltage electrical devices — often being placed in very close proximity to people in offices and homes — that must be properly tested and certified as being safe and effective in generating power," said Ash Sahi, president and CEO of the CSA Group in a statement announcing the lab's opening and describing its mission.
CFV offers both North American certification according to UL 1703 safety standards, and IEC certification, which is the international standard for PV modules, said Plass, a German native who has lived in the States for 20 years and became an American citizen last October.
The process involves running PV panels through a series of standardized tests, which vary depending on whether they're for the heavy-on-safety North American certification or more performance-oriented international certification and on the types of PV modules being tested — regular crystalline silicon, thin film or concentrating photovoltaics, Plass said.
"(They're) the kind of tests every manufacturer has to go through before they can really market their modules," Plass said. "If they don't get this certification test, they will get less money when they sell the modules. So, it's a de facto requirement, not a legal requirement."
In addition to standard certification tests, the lab will offer testing specifically requested by a manufacturer.
"Let's say a manufacturer gives like a 20-, 25-year warranty on their panels," Plass said. "So they're often interested to know a little bit better how reliable their panel is going to be and how long it is going to hold up."
Testing falls into several categories. There are climate chamber tests to determine a module's performance under the stresses of various environments, such as the dry climate in the desert or hot, humid conditions of a jungle. In the temperature cycling test, for example, a module is cycled minus 40 degrees F. to 185 degrees F. to determine if the module sustains any degradation, Plass said.
Another is the humidity freeze test, where the module is rapidly moved from high temperature, 85-percent humidity to minus 40 to see if any moisture freezes and cracks the sealing of the module.
Mechanical tests include firing 1-inch-diameter ice balls into panels at 50 mph to simulate the effects of a hail storm and using sandbags to apply 100 pounds of pressure per square foot to modules to simulate a snowload.
Then, there's the breakage test, which is specific to the UL certification.
"That's where we actually use a wrecking ball," Plass said. "It's like a punching bag filled with lead weights. We crash that from different heights (into the module). We want to see if it breaks into small pieces, or the whole thing kind of maintains its integrity. It's a safety test where we can evaluate if any big piece could fall off the roof and hurt someone."
There are a number of other safety and electrical tests as well, such as plunging the module into liquids to check for current leakages that might be dangerous, or scratching the panel to see if it exposes electrical wiring.
"Say it got installed poorly or installers scratched the module," Plass said. "We want to ensure that any normal damage a module wouldn't cause the module to become dangerous."
Plass said the lab has nine full- and two part-time employees, and is looking to add two more full-time people in the near future. "I think once we get the full volume of tests, we're probably going to add another four or five," he said.
Plass said his much of his previous working career was spent in the paper machine industry as a planning and product manager.
"It's very capital intensive and as product manager, I was very involved in developing the right equipment and figuring our prices," he said. "That's a big benefit I can bring in right now to set up the center."
The R&D facility, operated by Fraunhofer CSE and Fraunhofer ISE, is focusing on long-term PV module reliability, increased performance and reducing costs. It will eventually employ 15 to 20 people.
No alarm necessary — the subjects are lifeless solar panels. But, in time, their ordeal should pay off for everyone involved.
The CFV Solar Test Laboratory opened last month at Mesa del Sol in Albuquerque, offering testing and certification services for manufacturers of solar panels to more quickly, and at lower cost, enter worldwide markets.
Unique in New Mexico, the lab is one of the few in the country that can certify for both North American and international standards.
"You not only have us becoming a production location, but now the testing and certification location for at least part of the world," said Bernalillo County Commissioner Art DeLaCruz, who worked with the county Economic Development Department on efforts to land the lab at Mesa del Sol. "That's critical because it continues to send out the message that we are the place for solar."
The state of New Mexico contributed $750,000 and Bernalillo County $250,000 to support the lab and the Fraunhofer Research and Development Facility, which is located together with the lab in the former Advent Solar complex. The two companies will evenly share the money.
CFV rents about 28,000 square feet of the building for offices and an indoor lab with a climate chambers and a solar simulator for performance measurements. It also has an outdoor testing area with different trackers and fixed racks to test various PV technologies.
"For all intents and purposes, we are open for business," said CFV manager Martin Plass. "I would like to process a full load (of orders) within the next two to three months."
The lab is jointly owned by four groups — CSA Group, VDE Testing and Certification Institute, Fraunhofer Institute for Solar Energy Systems and Fraunhofer USA Center for Sustainable Energy Systems.
"Solar panels are high-voltage electrical devices — often being placed in very close proximity to people in offices and homes — that must be properly tested and certified as being safe and effective in generating power," said Ash Sahi, president and CEO of the CSA Group in a statement announcing the lab's opening and describing its mission.
CFV offers both North American certification according to UL 1703 safety standards, and IEC certification, which is the international standard for PV modules, said Plass, a German native who has lived in the States for 20 years and became an American citizen last October.
The process involves running PV panels through a series of standardized tests, which vary depending on whether they're for the heavy-on-safety North American certification or more performance-oriented international certification and on the types of PV modules being tested — regular crystalline silicon, thin film or concentrating photovoltaics, Plass said.
"(They're) the kind of tests every manufacturer has to go through before they can really market their modules," Plass said. "If they don't get this certification test, they will get less money when they sell the modules. So, it's a de facto requirement, not a legal requirement."
In addition to standard certification tests, the lab will offer testing specifically requested by a manufacturer.
"Let's say a manufacturer gives like a 20-, 25-year warranty on their panels," Plass said. "So they're often interested to know a little bit better how reliable their panel is going to be and how long it is going to hold up."
Testing falls into several categories. There are climate chamber tests to determine a module's performance under the stresses of various environments, such as the dry climate in the desert or hot, humid conditions of a jungle. In the temperature cycling test, for example, a module is cycled minus 40 degrees F. to 185 degrees F. to determine if the module sustains any degradation, Plass said.
Another is the humidity freeze test, where the module is rapidly moved from high temperature, 85-percent humidity to minus 40 to see if any moisture freezes and cracks the sealing of the module.
Mechanical tests include firing 1-inch-diameter ice balls into panels at 50 mph to simulate the effects of a hail storm and using sandbags to apply 100 pounds of pressure per square foot to modules to simulate a snowload.
Then, there's the breakage test, which is specific to the UL certification.
"That's where we actually use a wrecking ball," Plass said. "It's like a punching bag filled with lead weights. We crash that from different heights (into the module). We want to see if it breaks into small pieces, or the whole thing kind of maintains its integrity. It's a safety test where we can evaluate if any big piece could fall off the roof and hurt someone."
There are a number of other safety and electrical tests as well, such as plunging the module into liquids to check for current leakages that might be dangerous, or scratching the panel to see if it exposes electrical wiring.
"Say it got installed poorly or installers scratched the module," Plass said. "We want to ensure that any normal damage a module wouldn't cause the module to become dangerous."
Plass said the lab has nine full- and two part-time employees, and is looking to add two more full-time people in the near future. "I think once we get the full volume of tests, we're probably going to add another four or five," he said.
Plass said his much of his previous working career was spent in the paper machine industry as a planning and product manager.
"It's very capital intensive and as product manager, I was very involved in developing the right equipment and figuring our prices," he said. "That's a big benefit I can bring in right now to set up the center."
The R&D facility, operated by Fraunhofer CSE and Fraunhofer ISE, is focusing on long-term PV module reliability, increased performance and reducing costs. It will eventually employ 15 to 20 people.
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