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Alongside the growth in solar-thermal technologies, international PV markets continued to grow (Figure 2-1). EIA reports that U.S. PV shipments increased 11% in 2001 to almost 98 peak MW. In 2001, the overall value of PV cell and PV module shipments rose by 13% to $305 million. In terms of price per peak watt, prices have remained stable at $2.46 for PV cells and $3.42 for PV modules. The EIA reports that most PV shipments went to the residential market, with a total of 33 MW in 2001. The industrial market remains the second-largest market for PV cells and PV modules, with 28 peak MW shipped in 2001.8 The year 2001 marked the first decline in PV exports in a decade. Exports declined 10% during 2001, in part because of a significant reduction of shipments to Japan and India as these countries commissioned greater PV production capacity. During 2001, Germany continued to be the main destination for U.S. PV exports.9 According to the InternationaI Energy Agency (IEA), the worldwide installation of PV has seen increases in many countries outside of the United States. From 1990 to 2000, Germany saw the amount of installed PV peak at an annual rate of 50.6%. The IEA reports nearly similar growth rates in Korea, where PV capacity grew by more than 400% between 1991 and 2001.10 Statistics from 2001 reveal an increase in the use of PV cells and modules for solar electrical generation with grid-interactive applications posting a 25% increase, and the village power/remote application market growing by 43%.11 PV continues to provide a cost-effective alternative for rural electrical needs where transmission lines are scarce or too costly to build. Barriers to Future Growth Although the growth in the solar industry is impressive, several barriers are keeping the industry from reaching its potential. First, despite impressive cost reductions over the last few decades, the cost of solar systems remains higher than traditional energy alternatives. But unlike coal or natural gas, solar energy’s cost is not dependent on resources typically located far from generation or refinery facilities, but rather, on technical and cost limitations of existing materials and systems. Solar energy systems are capital intensive, while the cost of the primary energy resource is free. New generations of solar technologies will improve conversion efficiencies, reduce manufacturing cost, and improve systems integration that will drive the market growth and rapid expansion in the solar industry. Figure 2-1. Increase in the world market for PV cells and modules. (Source: Solarbuzz, Inc.) 8Energy Information Administration, Renewable Energy Annual 2001 9Energy Information Administration, Renewable Energy Annual 2001 10International Energy Agency, Renewables Information 2002. 11Ibid. Solar Energy Technologies Program Multi-Year Technical Plan 12PDF Image | Solar Energy Technologies Program
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