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Solar Energy Technologies Program

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Solar Energy Technologies Program ( solar-energy-technologies-program )

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The Value of a Systems-Driven Approach A systems-driven approach, if applied correctly, offers clear advantages once market requirements are defined and understood. • By using the market-based requirements and related system- and component-level technical targets, a systems-driven approach will allow project managers to more efficiently allocate limited resources to R&D efforts that yield the greatest impact on system cost and performance. • A successful systems-driven program will provide researchers with tools to gain a much clearer understanding of the impacts of their specific R&D options on overall system cost and performance. • Data generated from a well-managed systems-driven approach will provide the Solar Program with a more credible and defensible story regarding the impact of R&D efforts on DOE and national goals. Within the Solar Energy Technologies Program, the systems-driven approach will be used to do the following: • Align technology development efforts and objectives with market-specific requirements (e.g., requirements for grid-connected distributed, grid-connected utility- scale, residential/commercial, and remote applications). • Apply a consistent methodology in developing and using analytical tools to analyze the impact of R&D activities (improvements in cost, performance, and reliability) and non-R&D activities (learning curve, economies of scale, financing, policy) on the costs and impacts of Solar Program technologies. • Develop and document a consistent methodology for continuously updating information on the cost, performance, and reliability of technologies under development and funded through the Solar Program. • Assess the relative probabilities of success among different technology R&D options, allowing informed decision-making at all levels. 3.1 Systems-Driven Approach Status In the broad field of solar energy technologies, analytical tools have been developed and commonly used by researchers, government, and industry organizations, in the context of particular technology areas. In some cases, these tools are integrated within a technology area to determine technical targets within specific markets, based on assessments of associated costs and risks. Currently, however, no standard framework exists within the Solar Program for analyzing each of the Solar Program technologies in this manner. In some cases, analytical tools are oriented toward technology development, without consideration of end markets, capital, or associated risks of different technology investments. Thus, a standard configuration is needed to enable rigorous target-setting and decision- making at the Program level. Solar Energy Technologies Program Multi-Year Technical Plan 32

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