Easy Holiday Shopping for Positive Solar News
Dec03

Easy Holiday Shopping for Positive Solar News

The end of 2013 is shaping up to be merry for the solar industry. It’s been a tough few years – as European governments cut back on incentives, inventories of solar panels, cells, and even raw materials started to pile up. But all that is getting sorted out, and a bunch more positive news is starting to point to a happy 2014 and beyond. Demand for solar in China, Japan, the U.S. and even Europe has been strong since the summer. The pull has been felt througout the supply chain, but is not likely to be so strong that solar will become more expensive for end-users. One sad tale this year has been a trade war between the developed home countries of some solar makers (in Europe and the U.S.) and China. But it looks like the compromise that the EU and China reached in July will stick, says Bloomberg. Perhaps those discussions will serve as a model for U.S.-China relations. Speaking of the U.S., In October, 12 new solar installations accounted for 504 MW or 72.1 percent of all new electricity capacity last month. For the year, solar’s share is more like 21%. The Earthtechling blog digs into numbers from the Federal Energy Regulatory Commission. Solar companies are sending positive signals to investors – and company stock has been soaring, points out Dana Blankenhorn at The Street. At Lux Research, analyst Ed Cahill is taking a longer view. He says that solar will become competitive with natural gas by 2025, or if gas prices are between $4.90 and $9.30 MMBtu, perhaps as early as 2020. Apparently natural gas is a helpmate to solar – because using both together “can accelerate adoption and increase intermittent renewable penetration without expensive infrastructure improvements.” Cahill says solar will become broadly competitive across the globe and that solar system prices will fall to $1.20 per W, from $1.96 per W in 2030 as modules get more efficient. One trend from the past will continue to dog the solar industry – as countries (and in the U.S., states) change policies, the industry will continue to see ups and downs. [Here’s a press release about the report, along with a...

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Solar Trade Tariffs Are A Drag
Jul25

Solar Trade Tariffs Are A Drag

Remember that old school-yard comeback? “I’m rubber and you’re glue…”? It looks like the unfair trade  claims that the U.S. and Europe lobbed at China’s solar industry have bounced back and stuck. Last October, the U.S. Commerce Dept. made good on a months-long threat to impose a 24-36% tariff on solar panels imported from China. And last week, China completed the tit for tat by putting a tariff on U.S.-made polysilicon, the main raw material used for solar cells. [h/t Washington Post] Originally, the U.S. accused China of unfair trade practices – saying the government heavily subsidized the industry and manufacturers were selling modules at less than the cost of production, a practice known as dumping. The EU took similar action early this summer. China pretty quickly started to point out that the U.S. has given large grants to polysilicon producers, which has helped them quickly build huge new, more efficient production facilities. Those facilities export a lot of polysilicon to China. C&EN has covered this part of the industry pretty closely – both Hemlock Semiconductor (majority owned by Dow Corning) and Wacker Chemie had big expansion plans, some of which are now on hold. So let’s review. Tariffs don’t tend to take an unfair situation and make it fair. What they do reliably produce is uncertainty and higher prices – at a time when what the world needs now is not love, sweet love, but cheap, renewable energy (well, and love, too). The general idea is that the solar panel tariff will protect U.S.-based manufacturers of solar panels, but frankly, we lost that war a long time ago. At the time the original complaint was lodged, China already had a 2/3 global market share. Will any of the solar companies that folded because they couldn’t compete on price now re-open their doors? It has truly been an awful downward spiral for developed-world solar makers. Trying to stay in business while panel prices plummeted was like trying to catch a falling knife. But in the time that was happening, guess what industry was booming in the U.S.? Solar power! That is, the projects built to create electricity from the sun. Cheap panels plus renewables mandates and tax incentives magically created several utility scale solar farms. [Take that, shale gas!] And while the U.S. doesn’t compete very well with China on commodity crystalline silicon solar panels, we do lead the market in new and efficient types of inverters, which convert DC current from the panel to the AC current that runs your TV. More demand for cheap solar panels has meant a boom time for makers of inverter equipment. U.S....

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Solar Impulse: Moving solar energy from poetry to practicality
Jun21

Solar Impulse: Moving solar energy from poetry to practicality

Solar Impulse is spending the week in Washington, DC, and the C&EN headquarters is slightly abuzz with geeky giddiness. So, living a mere 15 minutes from the solar plane’s temporary home in a hangar at the Smithsonian’s Udvar-Hazy Center next to Dulles International Airport, I couldn’t resist the invitation to a Solvay-sponsored event with the pilots and crew on Tuesday evening. Melody twisted my arm kindly invited me to write about my visit for the Cleantech crowd. I had to walk past the ginormous Discovery space shuttle, which is spending retirement at the Udvar-Hazy Center, then dodge raindrops to get to the the temporary hangar housing Solar Impulse just outside of the museum. The rainy weather and mugginess of the hangar didn’t exactly create the setting you’d expect for admiring a plane that runs on energy from the sun. But I digress. Compared to the robust space shuttle, the solar plane looks like an oversized toy glider. As Alex Scott pointed out in his article on the chemistry behind Solar Impulse, the plane has a wingspan about the same as a 747’s but weighs about the same as a small sedan. There is no other way to describe the cockpit than as tiny. It’s basically a chair with a bubble over it. And, of course, there are lots and lots of solar panels. Before the pilots’ presentation, I was in a group chatting with a member of Solar Impulse’s communications team. When asked about the plane’s assembly at Moffett Airfield near San Francisco, she explained that it took the team basically three days to put the plane together and equated the process to assembling furniture from IKEA. No nails, just glue. Hopefully, no leftover parts. It is, apparently, that amazingly simple. Bertrand Piccard was the first of the two pilots to speak. His psychiatry background came through as he talked about changing your altitude in order to fight against the winds while in a balloon. My mind was starting to drift away a bit when he brought me back with this line: “This is all very poetic, but useless. Let’s make it practical.” He then showed a picture taken at the end of his around-the-world-in-a-balloon mission in 1999. “Many people think this is the last picture of a balloon trip,” he said. “In fact, it is the first picture of Solar Impulse.” Piccard then shared that it was the amount of fuel spent on the trip and that there was only 40 kilos left at the end that ignited the Solar Impulse project. André Borschberg spoke more about how the plane actually works. While listening to him, I came to realize...

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Never Mind All That: Solar on the upswing
May22

Never Mind All That: Solar on the upswing

I’m going to have to start posting more frequently. My last post was about solar firms going bankrupt in China and now my cleantech news is about how solar is set to rebound. Seems like something should have happened in between that post and this one. Actually, a few biobased chemical deals were announced. Thanks BASF and Evonik! Anyway – back to solar. Earlier this week, Lux Research (a rather skeptical gang generally) put out a summary of a new research report titled “Solar’s Great Recovery: Photovoltaics Reach $155 Billion Market in 2018.” Actually, solar had a great 2012 – at last in the U.S. – but that was mainly due to installations of several large utility projects. The business of producing those solar modules had hit some major potholes. Around five years ago, solar demand was hindered by high prices – held up by shortages of key polysilicon raw material, but balanced by huge subsidies in Europe, especially in Spain and Germany. Then – in the nature of boom and bust cycles – the high prices prompted huge polysilicon capacity increases. Then prices fell, Europe cut subsides, the recession hit… and all that new capacity made solar prices tank and inventories piled up. Whew – what a tale. In a fun new twist, according to Lux analyst Ed Cahill, the solar crisis will become a boon as record low prices boost demand. (And after that what will happen? Stay tuned). The rise will take place as those cheaper installations (especially utility and commercial rooftop) become routine and spread into new markets. U.S., China, Japan, and India are expected to speed up installations. That will help to power (no pun intended) a compound annual growth rate in the industry of 10.5% over the next three years. A few other things might help – according to this New York Times article, the U.S. and Europe are both working to smooth over trade disputes with China. Regional pricing schemes may take the place of tariffs. China had been accused of exporting solar modules at prices less than the cost of production (a practice called “dumping”). China, in turn, accused polysilicon makers in the U.S. and Europe of doing the same thing. All of this fun news is not likely to help revive solar module manufacturing in the U.S. or in Germany. But new technology might. My colleague Alex Scott flagged a news item from the University of Stuttgart’s Institute for Photovoltaics. Researchers there have tested a crystalline silicon solar cell with a 22% sunlight conversion efficiency. It is difficult to say how much a module made of these cells would convert, but a traditional module is...

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Solar Boom in Japan, with Battery to Match
Apr22

Solar Boom in Japan, with Battery to Match

Japan has been making large strides in solar since the Fukushima disaster, and those efforts look set to accelerate, at least in the near term. The country, which is not blessed with a wealth of fossil fuel resources, had relied heavily on nuclear energy, but it is now spending big for solar installations as well as energy storage. Just in time for Earth Day, Bloomberg is reporting that the Ministry of Economy, Trade and Industry plans to spend around $204 million on a battery system to stabilize the flow of solar power on the northern island of Hokkaido. The location’s less expensive land has attracted ground module solar power systems. The report did not state what type of battery will be used, though Cleantech Chemistry will be looking for updates. The ministry is targeting 2015 for the system to be up and running (up and storing?) The country began a generous feed in tariff for solar in July, which attracted just over 1.33 GW of installations through the end of January of this year. According to IHS iSuppli, the FIT is around 42 cents (in U.S. currency) per kilowatt hour, which is quite generous. Though the tariff may be scaled back as systems come online, IHS forecasts that Japan will install 5 GW of solar capacity this year. To put that figure in perspective, the European Photovoltaic Industry Association reports that 30 GW of grid-connected solar was installed globally in 2012, about the same as in...

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Natural Gas and Cleantech
Mar18

Natural Gas and Cleantech

Cleantech fans: it is time to educate yourselves. Set aside for a moment your interest in wind energy, solar, bio-based chemicals, biofuels, and electric vehicles and read this week’s story about what the U.S. may do with its abundant natural gas. Here are some things that the country can do with natural gas: it can make electricity, upgrade it to useful chemicals, use it as a transportation fuel, or export it. The U.S. has access to so much natural gas that it could do all four things. And do them all cheaply, and profitably compared to our trade partners. At this point, even if you only use your knowledge about the promise of cleantech at cocktail parties, you should start to think about the impact of abundant natural gas on your favorite technologies. My colleagues Jeff Johnson and Alex Tullo’s feature asks what effect DOE policies on liquefied natural gas exports might have on the chemical industry and the wider economy. The flip question – not addressed in the story — is what impact natural gas that stays in the U.S. will have on the competitiveness of renewable energy and materials innovations. At the recent ARPA-E show, I saw energy technology that is seeking to take advantage of abundant natural gas – and the speakers at the conference were rather fixated on the topic. (see my story on the ARPA-E Show in this week’s issue). Alert readers will recognize which minority member of the Senate appears in both articles. I hate to give away the ending of the natural gas story but (spoiler alert!) U.S. natural gas prices will stay low even if we ramp up exports. When I was in school and my class learned about the Panama Canal, one of my classmates couldn’t understand why engineers had to build locks to compensate for the different sea levels between the Pacific and Atlantic. Once you connected the two oceans, wouldn’t they level out? Well, no. Similarly, there is a small aperture through which natural gas would escape U.S. borders via the export market. Liquification imposes a significant surcharge on every unit of gas, it costs a lot to build a plant to do it, the export hubs need to be brought online, and there is a backlog in approving facilities. But read the full story and get the full...

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