The Solar Industry

Solar Energy Market Segments

The solar industry is all about one thing: converting energy generated by the sun to a form of energy people would actually pay for. The most targeted form of energy is obviously electricity, although producing thermal energy is very useful for several application (did you shower today?). We will divide the entire solar energy market to the 3 most widely used technologies: P.V. solar panels,concentrating thermo-solar and solar water heating.

P.V. solar panels

Photovoltaic solar panels use the photo-electric effect to generate electrical current from photons the small particles that carry energy from the sun all the way to earth. This segment is where most of the R&D currently goes to, for good reasons. First, it is considered to be the most efficient solution for residential and commercial customers. Second, solar panels generate electricity, which is (and will be) in ever-growing demand. Third, the technology used by P.V. companies has been around for many years and was thoroughly researched. The P.V. solar panels segment is heavily influenced by two forces driving its supply and demand dynamics costs of silicon (on the supply side) and government incentives (on the demand side). We will write a separate article on the dynamics of supply and demand in the solar industry, as it has critical impact on the performance of all companies operating in the P.V. market. Size of P.V. solar projects vary from small, residential, consumer oriented projects, to largereither commercial or even utility scale projects, where thousands of solar panels are installed, usually in large, open areas. Companies: First Solar (FSLR) (FSLR 145.91 0.19%), SunPower (SPWRA 16.70 -3.19%), Trina Solar (TSL 27.08 -1.46%)

Concentrating Thermo-Solar
Concentrating thermo-solar plants are composed of a large field of mirror, focusing sunlight onto a medium which conducts a fluid (usually water). The fluids temperature rises, steam is released, moving a turbine which generate electricity. Concentrating solar projects are huge in size, usually located in deserts, are very efficient (close to 50% of the suns energy is converted to electricity, as opposed to 10-15% of P.V. panels). Due to their size, these projects require heavy funding, and are strongly influenced by the credit markets and incentive programs. Several companies operating in the concentrating thermo-solar segment are on their way to find the holy grail of the solar industry and efficient way to store solar energy (which is not available 24/7, a major drawback). Solar energy storage technology is a true gamechanger, and we will keep you up to date on where this technology is heading.

Companies: BrightSource (privately held), Solel (acquired by Siemens (SI 134.94 2.44%))

Solar Water Heaters

The dark horse of the solar industry, solar water heaters are simple tubes, sometimes enclosed in a glass frame, whos sole purpose is to heat water running through them. The heated water is stored in tanks, usually mounted on rooftops, eliminating the need to use electrical water hearts. Although the technology is very basic, solar water heating is the most accessible solar energy solution available today. In several sunny countries, solar water heaters are mandatory in new buildings. The potential for this market is huge, especially in developing countries, where reliability and reach of electricity grids are limited. Most companies operating in these segments are Chinese manufacturers and local, small system installers. Very little, if any, R&D goes into these systems, despite the fact that in large numbers, they can make a huge difference in terms of carbon emission.

Companies Profiled Sharp Solar Isofoton Schott Sanyo Q-Cells SolarWorld Kyocera SunPower BP Solar Suntech First Solar Yingli Green Energy AES PrimeStar Solar Akuo Energy Q-Cells AG Colorado Instruments /Sanyo SolarWorld SatCon Concentrix Signet Solar Cypress Semiconductor /Siemens Sunpower Solaire Direct Dyesol Limited Solarfun Power Evergreen Solar Holdings Co, Ltd. Flisom Solar Integrated GE SolarWorld AG Global Solar Energy Solartech Hitachi America Ltd. Solon Hoku Scientific Spectra Watt / Intel Isofoton Tenesol

Kyocera LDK Solar Mitsubishi Nanosolar

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