Material in this chapter is based upon manufacturing shipment information reported on Form EIA-63A (“Annual Solar Thermal Collector Manufacturers Survey”) and Form EIA-63B (“Annual Photovoltaic Module/Cell Manufacturers Survey”). Domestic shipments of photovoltaic cells and modules have increased to seven times the 1993 levels (Table 10), while solar thermal collector shipments have grown 68 percent during the same time frame (Table 11).

Total shipments of solar thermal collectors⁴ were 11.7 million square feet in 2002. This represented an increase of 4 percent from the 2001 total of 11.2 million square feet. There were 27 companies shipping solar collectors in 2002, one more than in 2001. Import and export shipments both declined from 2001 record levels to 3.1 million square feet and 0.7 million square feet, respectively (Figure 5).

Low-temperature solar collectors represented 95 percent of total shipments, while medium-temperature collectors were responsible for approximately 5 percent (Table 12). Medium-temperature collector shipments in 2002 increased 129 percent from 2001, reversing the decline in shipments each year since 1995. High-temperature collectors used by utilities and non-utilities in experimental grid electricity programs represented less than 1 percent of total shipments (Table 12, Figure 6).

Figure 5. Import and Export Shipments of Solar Thermal Collectors, 1991-2001

Figure 6. Solar Thermal Collector Shipments by Collector Type, 1990-2001

U.S. firms in six States (California, New York, Hawaii, New Jersey, Florida, and Texas) and Puerto Rico manufactured nearly all U.S. solar thermal collectors in 2002 (Table 13). Shipments included both components and integrated solar collector systems.

Domestic shipments were sent to 46 States, Puerto Rico, and the U.S. Virgin Islands (Table 14). Exports went mainly to Canada (41 percent), Mexico (23 percent), Sweden (8 percent), France (7 percent), Germany (4 percent), and Austria (3 percent) (Table 15). Fifty-five percent of total shipments were sent directly to wholesale distributors, 39 percent to retail distributors, 3 percent to installers, 2 percent to exporters, and 1 percent to other end users (Table 16). Compared with 2001, wholesalers, retail distributors and installers gained while exporters, end users and others declined.

Figure 7. Average Price of Solar Thermal Collector Shipments by Collector Type, 1996-2001

The value of total shipments was $33.3 million in 2002, an increase of 3 percent from 2001 (Table 17). The average price for total shipments decreased 2 percent, from $2.90 per square foot in 2001 to $2.85 per square foot in 2002. The value of low-temperature collectors, 95 percent of total shipments, decreased from $23.5 million in 2001 to $21.8 million in 2002, a decrease of 7 percent (Figure 7, Table 17). The average price of low-temperature collectors decreased from $2.15 in 2001 to $1.97 in 2001. In contrast, while the value of medium-temperature collectors increased from $8.7 million to $11.4 million (a growth of 32 percent), the average price fell 43 percent to $18.63 per square foot. Shipments of flat plate collectors were responsible for the decline in average price of medium-temperature collectors, falling 47 percent.

The residential sector continues to be the prime market for solar collectors, totaling 11.0 million square feet, or 94 percent of total shipments (Table 18). The commercial sector was the second largest, with 0.6 million square feet (5 percent). The largest end use for solar collectors shipped in 2002 was for heating swimming pools, consuming 11.1 million square feet (95 percent) of total shipments. The second-largest use was for domestic hot water heating (4 percent). This marked an increase from 2001 to 2002, when domestic hot water heating represented approximately 2 percent of total shipments. The value of shipments of complete systems increased to $10.4 million in 2002 from $8.9 million in 2001 (Table 19).

Of the 27 active companies shipping solar collectors, two are planning to introduce new low-temperature collectors, four are planning new medium-temperature collectors, and two expect to introduce high-temperature collectors (Table 20). In 2002, the industry remained highly concentrated – the 10 largest companies accounted for 98 percent of total shipments (Table 21). In fact, the percent of total shipments by the top 5 companies has been at least 90 percent since 1999. Employment increased 39 percent in 2002 from 2001 to the highest level since 1995 (Table 22). A total of 20 firms were involved in the design of collectors or systems, 13 were involved in prototype collector development, and 9 were active in prototype system development (Table 23). Nineteen companies had 90 percent or more of their total companywide sales in solar collectors, while four companies had 50 to 89 percent, and 3 companies had less than 10 percent (Table 24).

Photovoltaic Module and Cell Manufacturing Activities⁵

Photovoltaic (PV) cell and module shipments reached 112.1 peak megawatts in 2002, a 15 percent increase from the 2001 total of 97.7 peak megawatts (Table 25). Photovoltaic cells represented 43 percent of shipments in 2002 versus 31 percent in 2001. Photovoltaic modules represented 57 percent of shipments in 2002 versus 69 percent in 2001 (Table 25).

Exports increased to 66.8 peak megawatts in 2002 from 61.4 peak megawatts in 2001, an increase of 9 percent (Table 26 and Figure 8). However, exports’ share of total shipments dropped to 60 percent in 2002, compared with 63 percent in 2001. In contrast, there was the same number (19) of companies manufacturing photovoltaic products in 2002 as in 2001.

Trends in sales to different groups of recipients varied. Sales to wholesale distributors, the largest recipient category, rose 5 percent to 62.7 peak megawatts in 2002 from 59.8 peak megawatts, and represented 56 percent of total shipments in 2002 versus 61 percent in 2001 (Table 27). Sales to the second-largest category, module manufacturers, jumped 69 percent to 23.8 peak megawatts in 2002 from 14 peak megawatts in 2001.

Figure 8. Import and Export Shipments of Photovoltaic Cells and Modules, 1992-2002

Figure 9. Photovoltaic Cell and Module Shipments by Type, 1998-2001

Crystalline silicon cells⁶ and modules continued to dominate the PV industry in 2002, accounting for 93 percent of total shipments (Table 28). Within this category, single-crystal shipments in 2002 rose sharply to 74.7 peak megawatts, or 67 percent of total shipments. Cast and ribbon silicon shipments remained relatively unchanged during 2002 at 29.4 peak
megawatts. However, its market share declined to 26 percent from 31 percent of total shipments in 2001. Thin-film shipments decreased substantially to 7.4 peak megawatts in 2002 and represented only 7 percent of total shipments (Figure 9).

The total value of photovoltaic cell and module shipments grew 12 percent to $342 million in 2002 from $305 million in 2001 (Table 29). The average price for modules (dollars per peak watt) increased 9 percent, from $3.42 in 2001 to $3.74 in 2002. For cells, the average price decreased 14 percent, from $2.46 in 2001 to $2.12 in 2002.

The industrial sector replaced the residential sector as the largest market for PV cells and modules in 2002. Shipments to this sector totaled 32.2 megawatts and grew at a rate of 15 percent from 2001 to 2002. The residential sector totaled 29.3 megawatts in 2002, declining 12 percent. However, its share of the market was still significant at 26 percent.

Internationally, the United States photovoltaics markets have benefited from new government–sponsored programs, such as favorable tax credits and loan subsidies including favorable loan repayment schedules in Germany and Japan in past years. However, since 2000 U.S. exports to Japan have dropped sharply, because Japan’s domestic production is expanding rapidly.⁷ In developing countries like Indonesia and Brazil, the World Bank has made low interest energy loans with long term pay-back schedules for the installation of residential applications for PVs. The United States also has implemented a “Million Solar Roofs Initiative” program as well as various loan programs. In addition, an increasing number of utilities have sponsored programs such as net metering, portfolio standards, and green pricing. In general, a growing group of industries and residential sector customers appears willing to pay for PV-based installations. The commercial sector, the third largest sector in peak kilowatts shipped, increased by 31 percent its use of PV cells and modules in 2002.

Electricity generation, which consists of both grid-interactive and remote applications, continues to be the predominant end use for PV cells and modules. In 2002, electric generation continued to account for 50 percent of total shipments with grid-interactive usage growing 25 percent. In 2002, communication and transportation end uses were the second- and third-largest end uses, respectively, totaling 30 percent. Shipments to the health sector increased 31 percent in 2002, while shipments for consumer goods declined 16 percent to 3.4 megawatts in 2002.

Export shipments rebounded 9 percent to 66.8 peak megawatts in 2002 from 61.4 peak megawatts in 2001 (Table 31). Shipments to Europe represented 58 percent of total U.S. exports, with Germany alone being responsible for 50 percent. Asia and the Middle East totaled 23.5 percent of total exports. Hong Kong imported 16.2 percent of total U.S. exports, an increase of 129 percent (Table 32).⁸ This increase coincides with a government sponsored study on the potential applications of renewable energy in Hong Kong. It includes a demonstration project to evaluate the performance of various building integrated photovoltaic (BIPV) panels.⁹ The percent of shipments to Japan dropped to only 3.2 percent of the market in 2002, down from a previous peak of 26.9 percent in 1999.¹⁰

Figure 10. U.S. Photovoltaic Export Shipments by Major Country of Destination, 1998-2002

While complete PV systems¹¹ shipped increased by 64 percent in 2002, the total value of complete systems decreased 10 percent in 2002 to $45.4 million, as the complete systems shipped in 2002 were smaller and less expensive compared to 2001 (Table 33). Employment in the PV manufacturing industry remained stable, increasing only 1 percent from the nine-year high in 2001 (Table 34). Ten companies plan to introduce crystalline silicon products, and five companies plan to introduce thin-film products (Table 35) in 2003. Many companies that are engaged in the manufacture and/or importation of PV modules and cells reported their involvement in other PV-related activities including: 11 in cell manufacturing and 16 in module or system design; 12 in prototype module development and 11 in prototype systems development; 12 in wholesale distribution, 8 in retail distribution, and 8 in installation (Table 36).

Tables

Table 10.   Annual Photovoltaic and Solar Thermal Domestic Shipments, 1993-2001
Table 11.   Annual Shipments of Solar Thermal Collectors, 1993-2001
Table 12.   Annual Shipments of Solar Thermal Collectors by Type, 1993-2001
Table 13.   Domestic Shipments of Solar Collectors Ranked by Top Five Origins and Destinations, 2001 and 2002
Table 14.   Shipments of Solar Thermal Collectors by Destination, 2001
Table 15.   Distribution of U.S. Solar Thermal Collector Exports by Country, 2001
Table 16.   Distribution of Solar Thermal Collector Shipments, 2000 and 2001
Table 17.   Solar Thermal Collector Shipments by Type, Quantity, Value, and Average Price, 2000 and 2001
Table 18.   Shipments of Solar Collectors by Market Sector, End Use, and Type, 2000 and 2001
Table 19.   Shipments of Complete Solar Thermal Collector Systems, 2000 and 2001
Table 20.   Table 20. Number of Companies Expecting to Introduce New Solar Thermal Collector Products in 2002
Table 21.   Percent of Solar Collector Shipments by the 10 Largest Companies, 1993-2001
Table 22.   Table 22. Employment in the Solar Thermal Collector Industry, 1993-2001
Table 23.   Companies Involved in Solar Thermal Activities by Type, 2000 and 2001
Table 24.   Solar-Related Sales as a Percentage of Total Sales, 2000 and 2001
Table 25.   Annual Shipments of Photovoltaic Cells and Modules, 1999-2001
Table 26.   Annual Shipments of Photovoltaic Cells and Modules, 1993-2001
Table 27.   Distribution of Photovoltaic Cells and Modules, 1999-2001
Table 28.   Photovoltaic Cell and Module Shipments by Type, 1999-2001
Table 29.   Photovoltaic Cell and Module Shipment Values by Type, 2000 and 2001
Table 30.   Shipments of Photovoltaic Cells and Modules by Market Sector, End Use, and Type, 2000 and 2001
Table 31.   Export Shipments of Photovoltaic Cells and Modules by Type, 2000 and 2001
Table 32.   Destination of U.S. Photovoltaic Cell and Module Export Shipments by Country, 2001
Table 33.   Shipments of Complete Photovoltaic Module Systems, 1999-2001
Table 34.   Employment in the Photovoltaic Manufacturing Industry, 1993-2001
Table 35.   Companies Expecting to Introduce New Photovoltaic Products in 2002
Table 36.   Number of Companies Involved in Photovoltaic-Related Activities, 2000 and 2001

Endnotes

⁴ Solar thermal collectors are divided into three categories: low, medium, and high-temperature collectors. The type is usually determined by the level of heat generated.

⁵ Data for cells and modules are for terrestrial use only (i.e., excludes space applications).

⁶ Photovoltaic (PV) components are divided into three categories by product type: (1) crystalline silicon cells and modules which include single-crystal, cast silicon, and ribbon silicon; (2) thin-film cells and modules made from a number of layers of photosensitive materials such as amorphous silicon; and (3) concentrator cells and modules in which a lens is used to gather and converge sunlight onto the cell or module surface.

⁷ For year 2000 data, see Table 30, “Destination of U.S. Photovoltaic Cell and Module Export Shipments by Country, 2000,” on the EIA website: http:www.eia.doe.gov/cneaf/solar.renewable/page/solar/table30.html, (October 1, 2003).

⁸ For year 2001 data, see Energy Information Administration, Renewable Energy Annual 2001, DOE/EIA-0603(2001) (Washington, DC, November 2002), p.24, Table 32.

⁹ Environment, Transport and Works Bureau, The Government of the Hong Kong Special Administrative Region, Study on the Potential Applications of Renewable Energy in Hong Kong, see http://www.etwb.gov.hk/boards_and_committees/ace/2003ace/paper052003/index.aspx?langno=1&nodeid=324, (October 1, 2003).

¹⁰ Energy Information Administration, Renewable Energy Annual 2000, DOE/EIA-0603(2000) Washington, DC, (March 2001), p. 25, Table 30.

¹¹ A complete PV system is defined as a power supply unit that satisfies all the power requirements of an application. Such a system is generally made up of one or more modules, a power conditioning unit to process the electricity into the form needed by the application, wires, and other electrical connectors. Batteries for back-up power supply are an option that can be included.

Contact:
Fred Mayes
fred.mayes@eia.doe.gov
Phone: (202) 287-1750