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output. Data collection spans all elements of life-cycle cost, including component and system performance, as well as cost of components, system design, installation, permitting, O&M, financing, and so forth. Analysis of the data provides the basis for cost and performance models. The Stage Gate model,6 shown in Fig. 2.4-1, complements the reference system / TIO approach, and the Solar Program will begin using Stage Gate as a program management tool during FY 2006. Under this tool, commitment of funding on a project is low at the start and increases as more work is done and confidence increases (through the Gate reviews) that the project will ultimately be successful. Initial efforts, such as exploratory research, focus on the most critical and uncertain elements early in the life of a project, thereby minimizing spending. Background studies, done to increasing levels of detail throughout the project, examine the potential for the technology, who will use it, its expected economics, and the anticipated effort to develop. These studies allow Gate Keepers (i.e., reviewers along the development path) to make the best judgment calls regarding spending increasing sums of money on the best projects. The expectation is that projects with significant technical and market problems are weeded out from the Solar Program’s portfolio sooner rather than later. Therefore, the “big” spending is reserved for those projects that have the greatest potential for success. Fig. 2.4-1 The Stage Gate model. Examples of Stage Gate-like program management are already found throughout the Solar Program, with projects moving through phases (or stages) and technologies being phased out (or “off ramped”). The SDA model will be used as part of the formal evaluation of the impact of program elements on Solar Program goals, particularly at Stage Gates. Frequent benchmarking of performance and critical analysis of the likelihood of achieving research goals will support the new emphasis on portfolio risk management in EERE. Stage Gate places a priority on early identification of the potential commercial impact of applied research. The use of LCOE as a primary metric helps to ensure that research is targeted to improve the commercial impact of our research. The following review meetings support Solar Program performance measurement and assessment: • State Gate Reviews: When the Stage Gate process is formalized within the Solar Program, gate reviews of program elements will be scheduled at the completion of each stage. The schedule for the reviews will depend on the length of the stage. For example, multi-phase research subcontracts will have gate reviews at the completion of each phase. 6 EERE RDD&D Decision Process—Standard Model, July, 2004 19PDF Image | Solar Energy Technologies Program
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