2. Solar Thermal and Photovoltaic Collector Manufacturing Activities

Introduction

This chapter presents national and State-level data on the United States solar thermal collector and photovoltaic module and cell manufacturing industry. The data are reported to the EIA by U.S.-based manufacturers and importers of solar equipment on Forms EIA-63A, “Annual Solar Thermal Collector Manufacturers Survey,” and EIA-63B, “Annual Photovoltaic Module/Cell Manufacturers Survey.” Historical data for comparison are presented for annual domestic shipments of solar thermal collectors for the years 1977 through 1996 and of photovoltaic modules and cells for the years 1982 through 1996 (Table 10). Since 1977, the total number of domestic shipments in square feet of solar thermal collectors is 229,730 thousand square feet. The total number of domestic shipments in peak kilowatts of photovoltaic modules and cells is 102,297 peak kilowatts. An estimate of the useful life of solar collectors has been calculated at 20 years. Throughout the chapter, the unit of measure is square feet of collector surface for solar thermal collectors and peak kilowatts for photovoltaic modules and cells.

Solar Thermal Activities

Shipments

Solar thermal collector shipments totaled 7.6 million square feet in 1996, virtually unchanged from the 1995 level of 7.7 million square feet (Table 11). Import shipments totaled 1.9 million square feet, while export shipments were 0.5 million square feet in 1996 (Figure 9). Shipments of low-temperature solar thermal collectors remained constant at 6.8 million square feet in 1996 compared to 1995 (Table 12). Shipments of medium-temperature collectors decreased 7 percent to 0.79 million square feet in 1996 from 0.84 million square feet in 1995. Shipments of high-temperature collectors decreased 3,000 square feet in 1996 to 10,000 square feet from 13,000 square feet in 1995.

Origins

U.S. manufacturers in California, New York, New Jersey, Florida, and Puerto Rico produced 98 percent of U.S.-manufactured collectors in 1996, which represented the same percentage they produced in 1995. California continued to lead the Nation in 1996 with 33 percent of total domestic shipments, an increase from 16 percent in 1995 (Table 13). New York, New Jersey, Puerto Rico, and Florida shipped a combined 3.6 million square feet in 1996, a decrease of 8 percent.

Distribution

Of total shipments in 1996, 64 percent were sent directly to wholesale distributors and 22 percent were sent to retail distributors (Table 14). Of export shipments, 82 percent were sent directly to exporters. Direct shipments to installers, end users, and others accounted for 10 percent of total shipments in 1996.

Collector Types

Solar thermal collectors are divided into the categories of low-, medium-, and high-temperature collectors. Low-temperature collectors provide heat up to 110^o Fahrenheit through either metallic or nonmetallic absorbers and are used in applications such as swimming pool heating, and water, space, and process heating. Medium-temperature collectors provide heat greater than 110^o Fahrenheit (usually 140 to 180^o Fahrenheit) through either glazed flat-plate collectors that use air or liquid as the heat transfer medium or concentrator collectors that concentrate the heat of incident insolation to greater than “one sun.” Evacuated-tube collectors are included in this category. High-temperature collectors are parabolic dish and trough collectors and are used primarily by utilities and nonutility power producers in the generation of electricity for the grid. A high-temperature solar thermal collector operates at temperatures above 180 degrees Fahrenheit (Figure 10). From 1987 through 1996, annual shipments of low-temperature collectors ranged between 3.2 and 6.8 million square feet. In 1996, medium-temperature collector manufacturers shipped just under 0.8 million square feet, a decrease of 7 percent from 1995.

Low-temperature collectors dominated the solar thermal industry in 1996, accounting for 90 percent of total shipments (Table 15). Medium-temperature collectors accounted for 10 percent of total collector shipments in 1996. Collectors that constituted subunits of thermosiphon systems or integral collector storage systems (ICS) represented 4.5 percent of total shipments. High-temperature collectors, shipped primarily for research and demonstration projects, represented about 0.1 percent of total shipments in 1996.

Values and Prices

The total value of solar thermal collector shipments was $29.8 million in 1996; a 18-percent increase compared with 1995. The average price of low-temperature collectors increased to $2.67 in 1996 from $2.31 in 1995 (dollars per square foot), and the average price of ICS and thermosiphon collectors increased to $21.63 in 1996 from $19.73 in 1995. This increase was due primarily to increased material costs. The average price for flat-plate collectors in 1996 increased to $8.57 from the corresponding 1995 level of $8.09 per square foot (Figure 11). The value of shipments includes charges for advertising and warranties. Excluded are excise taxes and the cost of freight or transportation for the shipments.

Markets

In 1996, the residential sector was the largest market for solar thermal collectors. Solar thermal collectors shipped to the residential sector in 1996 totaled 6.9 million square feet, 90 percent of total shipments (Table 16). This market sector primarily involves the use of low-temperature solar collectors for heating swimming pools and medium-temperature collectors for water heating in residential buildings. The second-largest market for solar thermal collectors in 1996 was the commercial sector, which accounted for 9 percent of total shipments.

Uses

The largest end use for solar thermal collectors shipped in 1996 was for heating swimming pools, representing 89 percent of the total square feet shipped. Swimming pools generally use low-temperature collectors. A common low-temperature pool-heating solar collector is a black plastic or rubber-like sheet with tubing through which water is circulated. The heat of the sun is transferred directly from the black absorbing material to the water circulating through the tubing to supply heat to the pool. Shipments for pool heating increased slightly in 1996 from the level reported in 1995.

The second largest end use in 1996 was for domestic hot water systems, which accounted for 10 percent of the total square feet shipped. Typical solar water-heating systems feature flat-plate collectors or collectors installed in an ICS or thermosiphon system. Unlike pool-heating systems, domestic solar water-heating systems nearly always have a conventional backup (i.e., gas or electric). Shipments in 1996 for hot water systems increased also slightly from the 1995 level.

Medium-temperature collectors also were shipped for space heating, and for installation into systems that provide both space and water heating and process heating. High-temperature parabolic dish and trough collectors were shipped for electricity generation and hot water in 1996.

Destinations

Domestic

Solar thermal collectors were shipped to 42 States, Puerto Rico, and the U.S. Virgin Islands in 1996 (Table 17). The four States and one U.S. territory that received the largest amounts of solar thermal collectors in 1996 were: Florida (49 percent), California (21 percent), Arizona (6), New York (3 percent), and Hawaii (3 percent) (Table 17). All of the collectors manufactured in Puerto Rico remained on the island. The U.S. market for solar thermal collectors continued to be highly concentrated in a few States and Puerto Rico. Factors favorable for solar energy use that these States and Puerto Rico have in common are: (1) good solar insolation; (2) high electricity costs; (3) solar-promoting incentives, such as tax credits or exemptions; and (4) a demand for low technology solar pool heaters and solar domestic hot water systems.

Export

Exports accounted for 6 percent of total shipments in 1996. A total of 19 companies exported solar thermal collectors in 1996 compared with 16 companies in 1995. Of total 1996 exports, low-temperature collectors accounted for 24 percent and medium-temperature collectors 73 percent. Summed by continents, the largest percentage of shipments were to North and South America (55 percent), followed by Europe (29 percent) and Asia (16 percent) (Table 18). Trading countries that received export shipments were Canada (29 percent), Taiwan (14 percent), Germany (7 percent) and Mexico (8 percent), Bolivia (7 percent), and Norway (6 percent).

Systems

The 28 companies reporting shipments of solar thermal collectors in 1996 reported shipments of 9,013 complete solar thermal collector systems. This was a 36-percent decrease compared with 1995 (Table 19). A complete system is a unit with a collector and all the necessary functional components, except for installation materials. Included are thermosiphon systems, integral collector storage systems, packaged systems, and system kits. The 9,013 complete systems accounted for 2.1 million square feet of collectors, an increase of 35 percent in square feet shipped above the 1995 level. The total value for the systems shipped in 1996 was $10.8 million, compared with $17.8 million in 1995.

Industry Status

In 1996, there were 28 companies active in the solar thermal collector manufacturing industry, a significant decrease from the 36 operating in 1995 (Table 11). The decline occurred principally in firms engaged partially in nonsolar-related businesses (Table 15). Despite the decrease, solar thermal collector manufacturers shipped virtually the same quantity as last year—7.6 million square feet during 1996 (Table 11), versus 7.7 million square feet in 1995. Of the 28 active companies, 7 are planning to introduce new low-temperature collectors, 11 are planning new medium-temperature collectors, and 3 expect to introduce new high-temperature collectors in 1997 (Table 20).

The decline from 1995 to 1996 in manufacturing firms reflects a continuation of a decade-long decline. Since 1987, 31 manufacturing companies have left the market (Table 11). This is due in large measure to two factors. First, the 40-percent residential energy tax credit and the 15-percent business energy tax credit expired at the end of 1985. Second, the decline in industry companies intensified with the drop in oil prices in 1986. The reinstatement of the business energy tax credit (at the 15-percent level for 1986, at the 12-percent level for 1987 through 1991, and at the 10-percent level in 1992)—plus increasing oil prices after 1986—appear to have had little effect on drawing companies into manufacturing solar thermal collectors [21].

At the end of 1996, 30 States were providing financial incentives for investment in the use of solar thermal collectors and photovoltaic modules and cells. The legislative actions were passed to encourage the use of an environmentally clean source of energy, to promote energy conservation through the use of renewable energy technologies, and to promote energy efficiency. Among the most common incentives were property tax exemptions and income tax credits for both the residential and business sectors.

Since 1987, the 10 largest U.S. companies that shipped solar thermal collectors have supplied not less than 95 percent of all solar thermal collectors manufactured in or imported into the United States (Table 21). In 1996, 97 percent of the approximately 7.6 million square feet of total shipments were supplied by the 10 largest companies.

Employment in solar-thermal-related activities decreased 147 person-years in 1996 to 239 person-years, a 38 percent drop from the 1995 employment level of 386. Industry employment data for 1993 through 1996 are as follows:

Most of the 28 reporting companies in 1996 combined manufacturing and related activities with importing of solar thermal collectors:

• A total of 20 companies were involved in the design of collectors or systems, 15 were developing prototype collectors, and 7 were developing prototype systems (Table 22).
• There were 19 wholesale companies and 12 retail companies. Of the 28 companies, 9 offered installation of their collectors.

Solar-related sales represented 90 to 100 percent of total company sales for 21 companies in 1996 versus 22 companies in 1995 (Table 23). Solar-related sales made up less than 10 percent of total sales for three companies in 1996, compared with four companies in 1995.

Photovoltaic Module and Cell Manufacturing Activities

Shipments

PV module and cell shipments in 1996 amounted to 35.5 peak megawatts. Module shipments accounted for 24.5 peak megawatts, while cell shipments accounted for 10.9 peak megawatts. Modules shipments increased 25 percent in 1996 from 1995, while cell shipments decreased 4 percent (Table 24). Total PV shipments in 1996 were 14 percent above the 1995 level. Total shipments have increased 460 percent since 1986 (Table 25 and Figure 12). Data for PV modules and cells for terrestrial use only (i.e., excluding space applications) have been reported each year since 1985.

Imports

Seven companies imported PV modules and cells in 1996 totaling 1.9 peak megawatts, or 5 percent of total shipments (Table 25). The predominant type of imported PV modules and cells was crystalline silicon. These imports originated in Australia, China, and Japan, with Japan accounting for most of the imported PV modules and cells.

Distribution

In 1996, PV module and cell shipments totaling 21.4 peak megawatts (60 percent of total shipments) were sent directly to wholesale distributors (Table 26). Installers and end users combined received 5.9 peak megawatts (17 percent of total shipments).

PV cell manufacturers shipped 5.5 peak megawatts (16 percent of total shipments) to other companies that manufacture (assemble) cells into PV modules.

Module and Cell Types

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

Crystalline silicon modules and cells continued to dominate the PV industry in 1996, accounting for 96 percent of total shipments (Table 27). In particular, single-crystal silicon shipments totaled 21.7 peak megawatts, an increase of 10 percent compared with corresponding 1995 shipments (Figure 13). Together, cast and ribbon silicon shipments totaled 12.3 peak megawatts in 1996, a 24-percent increase from the corresponding 1995 shipments. From 1995 to 1996, thin-film shipments increased 14 percent (Table 27). Thin-film shipments represented 4 percent of total shipments in 1996.

Values and Prices

The total value of photovoltaic module and cell shipments was $131.1 million in 1996, an 11-percent increase over the 1995 value of $118.4 million (Table 28). The total value includes charges for advertising and warranties, but does not include excise taxes and the cost of freight or transportation for the shipments.

The total value of crystalline silicone (single-crystal, cast, and ribbon) shipments was $121.7 million in 1996, an 11-percent increase compared with the corresponding 1995 value. The average price of crystalline silicon modules in 1996 was $3.95 per peak watt, a decrease of 10 percent from the 1995 price of $4.39 (Figure 14).

Uses

The largest end-use application of PV modules and cells in 1996 was for electricity generation (combined grid-interactive and remote). This represented 44 percent of total shipments (Table 29). Of the 15.7 peak megawatts represented by this end use, 99 percent involved crystalline silicon modules and cells. Grid interactive and remote, i.e., stand-alone, power generation include applications for grid distribution and general remote uses, such as residential power and power for mobile homes. The second largest PV end use in 1996 was in the communication sector, which accounted for 6.0 peak megawatts. An example of use in the commercial sector is the utilization of PV units to power fixed-based communications equipment, such as mountain-top signal-repeater stations. This sector represented 17 percent of total shipments. In 1996, transportation was the third largest PV end-use application, representing 15 percent of total shipments.

End uses related to water pumping and original equipment manufacturers accounted for 3.3 peak megawatts and 2.4 peak megawatts, respectively, in 1996 and involved primarily the use of crystalline silicon modules and cells.

Sales for consumer goods accounted for 1.1 peak megawatts in 1996. PV modules and cells used for health and medical purposes, such as to power refrigerators, medical equipment, and water purifiers, totaled 1.0 peak megawatts in 1996, a 26-percent increase over the 1995 level. End uses reported as “Other” for 1996 totaled 0.8 peak megawatts.

Destinations

Domestic

The residential sector was the largest market for PV modules and cells in 1996, accounting for 24 percent of total shipments (Table 29). The second largest market sector was industrial with 23 percent. In this market, PV modules and cells are used to produce power for industrial applications, including grid and nongrid systems. In 1996, 95.9 percent were crystalline silicon and 4.1 percent were thin-film silicon modules and cells. The commercial sector represented the largest market for PV shipments in 1995, but slipped to third place in 1996 with 15 percent. These modules and cells were shipped to provide power for commercial establishments such as office buildings, retail establishments, private hospitals, and schools (publicly owned hospitals and schools are listed under the government sector).

PV modules and cells for the transportation sector, which were used to produce power on boats, in cars, in recreational vehicles, and to power transportation support systems, amounted to 4.0 megawatts. The transportation sector accounted for 11 percent of total shipments in 1996 compared with 8 percent in 1995.

Shipments to the utility sector, where modules and cells were used to produce power at utility-owned systems including central stations, decentralized systems, and experimental applications, amounted to 4.8 peak megawatts in 1996, a 27-percent increase from 1995.

Shipments of PV modules and cells used to produce power at installations of Federal, State, or local governments (excluding military) totaled 3.1 peak megawatts in 1996. This compares with 2.0 peak megawatts shipped to the government sector in 1995. The “Other” sector (Table 29) in 1996 consisted of 1.6 peak megawatts shipped to foreign governments or used for speciality purposes.

Exports

Export shipments totaled 22.4 peak megawatts in 1996 (Table 30), an increase of 13 percent from 1995 levels. Generally, export shipments since 1990 have paralleled total shipments because of the continued search for new PV markets outside the United States (Figure 12). A total of 17 companies reported exports of PV modules and cells in 1996, with exports accounting for 63 percent of total PV shipments. Of all types of modules and cells exported in 1996, 98 percent were crystalline silicon (Table 30). Destinations of PV exports by continent, region, and by country are shown in Table 31.

Systems

Of the 25 companies that reported shipments of PV systems in 1996, 12 reported shipments of 1,615 complete photovoltaic systems, an increase of 50 percent from 1995 (Table 32). A complete photovoltaic 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, and sometimes batteries for back-up power supply. Some complex, large-scale PV systems use concentrators to focus incident insolation onto small PV cells and tracking systems to track the sun. In this report, installation materials such as the support frame and concrete foundations are not considered as part of a system. The value of systems reported in Table 32 excludes excise taxes and charges for freight, transportation, and installation. The total value of complete systems shipped in 1996 was $3.5 million. Complete-system shipments in 1996 accounted for 0.6 peak kilowatts, or 6.6 percent of total module shipments.

Industry Status

Shipments totaling 35.5 peak megawatts were reported by 25 companies in 1996. Eleven companies expect to introduce new crystalline-silicon module products, and seven companies reported plans to introduce new thin-film products to the industry during 1997 (Table 33). One company reported plans to produce new PV concentrator products and three plan new nonmodule system components during 1997.

Employment in PV-related activities totaled 1,280 person-years in 1996 (Table 34), a decrease of 19 percent from the 1995 level of employment. The average employment per company was 51 person-years in 1996, compared with 66 person-years in 1995.

Many companies, engaged in the manufacture and/or importation of PV modules and cells, reported that they also are involved in other PV-related activities. There were 11 companies involved in cell manufacturing, three less than in 1995. There were 19 companies involved in module or system design, 15 were active in developing module prototypes, and 14 developed PV system prototypes (Table 35). There were 19 companies that sold wholesale and 10 companies sold at retail. Nine companies, one more than in 1995, installed PV cells or modules.

Contact:

Mark Gielecki

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