The Solar Industry’s

Monthly Market monitor

Volume 29, Number 10, October 2010
The Industry’s Oldest Newsletter | Published by Greentech Media

SEIA/GTM Research Quarterly Survey Results;

Pennsylvania Makes a Big Leap in the US PV Market Also in This
Issue
Until this year, Pennsylvania has lagged behind its neighbors, New
York and New Jersey, in total solar PV installations. Crystalline Silicon
PV - Looking
In the first half of 2010, however, the size of the state, Pennsylvania is forward to 2011
Pennsylvania has more than doubled poised to become one of the largest
page 3
its combined 2008 and 2009 markets in the region.
installed capacities and has even SunEdison
inched ahead of New York. The The SREC program in Pennsylvania is
Awarded 16.7MW
reason New Jersey’s solar market still in the early stages of development,
of Solar Projects
has consistently been one of the but the state’s Alternative Energy
Portfolio Standard (AEPS) requires an page 14
strongest in the country can be
attributed to its State Renewable increasing amount of the energy sold
Sulfurcell Unveils
Energy Credit (SREC) market. to customers come from renewable
CIGS Cell With
Pennsylvania has a similar system in sources. In order for energy retailers
10.7% Efficiency
place, though it is less well defined. (namely PPL and PECO, which control
With solar requirements ramping up over 50% of the market) to adhere to page 17
in the near future, and considering continued on page 20...
Chinese Wafer
Makers GCL-
Poly and Comtec
Accrue Orders in
Excess of 600MW
page 18

California’s
Proposed Feed-
In-Tariff Tracker
page 19

PV News Feed-
In-Tariff Tracker
page 22

1
 Letter from the editor
This month, we relaunch PV News, now in its 30th year of publication. PV News, the most analytical,
independent, and enthusiastic written record of the PV industry in the world, will retain its name, but
upgrade its motto to reflect a new mission: “Monthly Market Monitor of the PV Industry.” When Paul
Maycock of Photovoltaic Energy Systems launched PV News in September 1981 as a “monthly report
of pertinent, valuable, factual data of the PV industry,” he began a tradition of reporting and analysis that
Scott Clavenna was singularly his own, and built a remarkably loyal following over the next 28 years. In this relaunch,
Editor-in-Chief
we intend to build on that legacy, and continue the tradition of advertising independence and detailed
Oka Tai-Lee market analysis with our team here at Greentech Media and GTM Research.
Production Editor
You’ll see more market research than in the past, and more incisive news-gathering. In addition, we’re
Andrew Krulewitz adding two new features to PV News that will appear in each issue: North American and European
Assistant Editor
Feed-In Tariff trackers, and a Utility Project Tracker. These will provide readers a monthly update on two
Kristine LaRocca of the most important areas of the PV market today: public support for PV and utility-scale PV projects.
Graphic Designer We’ll also be adding special reports from our team of analysts, as well as pulling data from ongoing
research projects that are underway here at GTM Research.
Michelle Vessel
Copy Editor An important development for us at GTM Research was our recent selection by the Solar Energy Industries
Paul Maycock
Association (SEIA) to be the official data collection and analysis firm for the U.S. solar market. Our work
Editor Emeritus, in this area is underway, and we’ll be releasing quarterly reports with SEIA on the state of the U.S. PV,
Contributing Writer solar heating and cooling, and CSP production and demand markets and a five-year rolling demand
forecast. PV News subscribers will benefit from this work as we highlight unique findings from the data
Publishers
collection process and highlight pockets of growth or rapid change among the states in the U.S.
Greentech Media, Inc.
1132 Massachusetts Ave
Cambridge, MA 02138
We welcome your feedback on our new look and content, and appreciate your continued
support of this esteemed newsletter.
E:pvnews@greentechmedia.com
W:www.greentechmedia.com

General Inquiries
Greentech Media welcomes all
contact about any topics related to
sustainable development and solar
energy. We strive to provide top-
quality data and analysis relating to
sustainable technologies. Please
feel free to contact us at the
address above with comments or
suggestions for improvement.
Sources
As an open source publication, we
would be pleased to share sources for
the facts and figures used in PVNews.
Contact us with any requests.
Copyright © 2009
Greentech Media
All rights reserved.
ISSN 0739-4829
PV News in History
10 Years Ago in PVNews History | SOLAR WORLD PURCHASES BAYER SOLAR
SolarWorld has purchased an 82% share of Bayer Solar, the cast-ingot poly silicon wafer supplier. Bayer
AG will retain an 18% stake in Bayer Solar. SolarWorld’s Executive Board Chairman, Frank H. Asbeck,
said their decision to acquire Bayer Solar was based on the company’s solid management and a desire
to keep wafer production in Germany. Bayer Solar was Germany’s only silicon wafer manufacturer, with
a world market share of 20 percent (this would be wafers supporting over 40 MW of PV cells). More
than 30% of Bayer Solar’s production goes to Japan.
25 Years Ago in PVNews History | JAPANESE PUSH FOR SILICON INDEPENDENCE
Japan is enlarging both its silicon refining and cell production base, with the following industrial
developments reported: 1) Toyo Soda Industry has a joint venture with Siltechs (USA). Reportedly,
they have bought 80% of Siltech’s stock and will manufacture wafers this year. 2) Tokuyama Soda,
which has been manufacturing 200 tonnes annually of polycrystal silicon, has increased its capacity
to 1,000 tonnes per year. 3) Kawasaki Seitetsu has bought 25% of the stock of NBK of Silicon Valley,
California for 1.8 billion yen. The company is expected to manufacture silicon cells. 4) Nippon Steel
has established a new company, Nittetsu Electron, which will start manufacturing single crystal solar
cells in June, 1986. 5) Niho Kokan has bought the manufacturing technology of polycrystal silicon
from General Electric and will start manufacturing polycrystal silicon next year. The company plans to
purchase silica and refine it to high-purity polycrystal silicon

2
 special report

Crystalline Silicon PV - Looking forward to 2011

an excerpt from the new GTM Research report ‘PV Production, Technology, and Cost Forecast’
by Shyam Mehta

On the surface, 2009 was also was another record-breaking year for the industry, with over 7 GW of modules installed,
total module production of 8.95 GW, and cell production of 10.66 GW – a 51% increase over 2008 cell production
of 7.05 GW (itself an 88% increase over 2007). Still, as shown in Figure 1, growth in supply easily exceeded that
in demand on the whole. Installations increased by only 24% last year after growing at close to 50% for the better
part of last decade, while capacity expansions that were set into place in 2008 resulted in available module supply
in 2009 being almost twice that of demand. However, as discussed below, a large percentage of this capacity was
not bankable, which helped to insulate the rest of the market from a prolonged period of overcapacity.
Figure 1: Global PV Supply vs. Demand, 2007-2009 The high-level results in Figure
1 mask the fact that 2009 was
one of the most challenging
years for PV suppliers in
recent memory. The credit
crisis, the global recession,
the evaporation of demand in
Spain (the largest PV market
in 2008), and a harsh German
winter led to a severe slump
in installations in late 2008
and early 2009, and the
consequent overcapacity and
inventory build led to sharp
price declines all across the
value chain. However, the
situation took a turn for the
better in the second half of
2009, as the German market
rebounded strongly, aided by
looming policy uncertainty in
2010 and the return of project financing in the second half of 2009. As a result of being forced to idle most of their
capacity at the beginning of the year, top-tier manufacturers found themselves sold out in the last quarter of the
year, during which an unprecedented 2.4 GW was installed in Germany alone. With project economics still working
in their favor and established low-cost players (First Solar, Suntech, Yingli, Trina) being capacity constrained, even
high-cost manufacturers saw strong demand.

The robust demand environment (fueled primarily by the German market) has continued well into 2010 thus far.
As shown in Figure 2, eight cell producers alone shipped over 1.9 GW in the Q2 2010 -- three times what was
shipped in Q1 2009. Most bankable producers are sold out for the rest of the year, and consequently, prices, which
had been in free-fall for much of 2009, have stabilized across the value chain, actually experiencing a 5% to 10%
increase in the second and third quarters of 2010.

3
 Figure 2: Quarterly Cell Shipments, Selected Producers,Q3 2008 - Q2 2010 Technology Trends
Crystalline silicon cell
production in 2009 was 8.02
GW, a 42% increase over
2008. As discussed below,
the majority of these cells were
manufactured in the low-cost
locations of China and Taiwan.
Total c-Si module production
in 2009 was 6.3 GW. Overall,
crystalline silicon still dominated
the PV technology landscape,
with a cell production share of
81% and a module production
share of 78%: for cells, this
breaks into a 75% share for
“plain vanilla” mono- and multi-
crystalline cells, and a 6% share
for high-efficiency “super”
mono-crystalline cells made
by SunPower and Sanyo.
Figure 3: 2009 Global PV Cell Production by Technology (MW-dc)
In a year where most producers
c o n s i d e re d t h e m s e l v e s
fortunate to expand marginally,
CdTe producer First Solar
doubled its production,
from 504 MW in 2008 to a
staggering 1,011 MW; the
company alone contributed
10% of global supply. Largely
thanks to the First Solar
factor, thin film’s market share
increased yet again from 14%
to 19% in cells, and from 15%
to 22% in modules. This top-
line result masks the turmoil
faced by almost every other
thin film producer in the
space, as an abundance
of cheap c-Si modules and
lenders’ unwillingness to
finance nascent companies
and technologies combined to
make life very difficult indeed; the top six thin film producers made up almost 70% of production, while the rest
were left with only scraps to feed on. Overall, 2009 thin film production stood at 1.98 GW, representing another
doubling over the previous year’s production of 966 MW. Amorphous silicon constituted 40% of this, or 796
MW, with Sharp and United Solar as the top producers in this segment. 2009 was also the first year to witness

4
 more than 100 MW of CIGS production (166 MW, to be exact), compared to only 74 MW in 2008: progress in
CIGS is definitely occurring, albeit at a steady pace, thanks to the efforts of such producers as Solar Frontier
(formerly known as Showa Shell Sekiyu), Würth Solar, and the ever-controversial Solyndra.

Regional Trends
Breaking down 2009 production by region confirms what the industry has known for quite some time now: manufacturing
Figure 4: 2009 Global PV Module Production by Technology (MW-dc) cells and modules is now a
game of low-cost production.
This is especially true for
standard crystalline silicon
cells, which have become
highly commoditized with little
perceived differentiation across
suppliers. Almost half (49%) of
the cells made in 2009 came
from China and Taiwan; when
limited to crystalline silicon cells,
this number jumps to 56%.
With regard to modules, these
numbers are slightly lower (40%
share for all technologies and
47% for just c-Si).

The continued growth in Chinese

and Taiwanese manufacturing
has come at the expense of
both European and Japanese
producers. European cell
production actually experienced
Figure 5: 2009 Global PV Cell Production by Region (MW-dc)
a slight (1%) decline compared
to 2008, and its production
share, after remaining steadily
in the mid-20% range through
the last half-decade, dipped a
full 10%, from 28% to 18%. This
simply illustrates the disparity
between cost structures in
these two regions; even the
most established European
producers incurred heavy
losses in 2009, simply unable
to compete profitably against
aggressive pricing strategies
adopted by Chinese firms, which
correctly assessed the existing
environment as an opportunity to
steal share. Japanese producers
expanded by 19%, aided no

5
 Figure 6: 2009 Global PV Module Production by Region (MW-dc)) doubt by a resurgence in the
Japanese market, which more
than doubled in 2009 to reach 484
MW of demand. Still, overall share
declined to just 14% for cells and
a mere 10% for modules. This is
a far cry from just five years ago,
when Japanese firms made up
over 50% of the market.

U.S. share of global cell and

module production remained
relatively flat, at 6% and 9%
respectively. As was the case
in 2008, the bulk of this came
from three producers: First
Solar (CdTe) in Ohio, United
Solar (a-Si) in Michigan,
and Evergreen Solar (string
ribbon) in Massachusetts. Thin film still comprised the majority (56%) of U.S. cell production, but was lower
compared to 2008 (68%).

Top Producers
With regard to cells, First Solar claimed pole position for cell manufacturing in 2009, with 1,011 MW of modules
produced, mostly out of its giant facility in Malaysia (another low-cost location on account of its generous tax
holidays). The top four positions represent a permutation of sorts: Q-Cells, number one in 2008, fell to the number
four slot, while Sharp, Suntech Power, and First Solar each moved up one place. Numbers 5, 6, and 7 are occupied
by Yingli, JA Solar, and Kyocera respectively; again, the same three firms occupied those slots in 2008, albeit
in a different order. All in all,
Figure 7: Top 20 Global Cell Producers, 2009 (MW-dc
therefore, the top 20 list looks
much the same as it did in
2008, with the most significant
changes being related to
Chinese firms moving up and
European/Japanese firms
(with the exception of Sharp)
moving down a few notches.
The biggest jumps were made
by Taiwanese E-Ton Solar (#24
to #15) and Chinese Ningbo
Solar (#30 to #14). The top 20
firms made up 74% of global
production, almost the same
as in 2008. As the industry
matures and successful
producers expand capacity
disproportionately, one would
expect this to increase over

6
 Figure 8: Top 20 Global Module Producers, 2009 (MW-dc) the long term. And if any further
proof were needed of Chinese
and Taiwanese dominance, a
look at the names on this list
will suffice: 12 of the top 20
firms are based in that region.

The list of top module

producers in 2009 heavily
overlaps that for cells, as
the largest PV manufacturers
produce both components.
There is a much more
significant European presence
in modules compared to cells,
partly because Taiwanese firms
by and large are pure-play cell
manufacturers, and proximity
to local demand is a source
of competitive advantage for
European module players.
Figure 9: Top 20 Global Wafer Producers, 2009 (MW-dc)
The list of top wafer producers
in 2009 is dominated by large
Chinese players, with a few
notable exceptions (REC,
Solarworld). Chinese wafer
production is split between
essentially pure-play wafer
manufacturers like LDK and
Renesola (both of which have
actually recently entered into
module production, albeit on
a much smaller scale than their
wafer businesses), and vertically
integrated players such as
Sharp, Yingli, and Trina.

Crystalline Silicon
Supply Constraints, Capacity
Expansions Underway

Germany’s late and sudden surge in the back half of 2009 and strong global growth throughout 2010 have meant
that even semi-bankable manufacturers have found themselves capacity-constrained and unable to fully exploit the
current market environment. Consequently, after a relatively sober 2009 where c-Si wafer, cell, and module capacity
grew by 30%, 27%, and 37% respectively, 2010 is witnessing a major build-out in crystalline silicon manufacturing
capacity, as shown in Figure 10. Each segment is expected to grow by around 45% to 50% in 2010, with a large
majority of the incremental capacity coming online in the second half of 2010 (especially wafers).

7
 Figure 10: Crystalline Silicon Manufacturing Capacity, 2008 - 2010E (MW-dc) As one would expect, most
of this additional capacity is
being added in the China/
Taiwan region (cells/modules
in China, mostly cells in
Taiwan). Figure 11 details the
largest expansion plans for
module producers in 2010. In
a few cases, expansion plans
have been revised upward
multiple times through the
year. While this capacity will
no doubt be well utilized in
late 2010 and possibly even
early 2011, it remains to be
seen what impact such a
jump in capacity (and hence
available supply) will have on
supply-demand and pricing
dynamics past that point, as
an uncapped German market
Figure 11: 2010 Module Expansions, Bankable Producers (MW-dc) becomes less and less viable
via significant subsidy cuts. To
the extent this capacity needs
to be utilized in 2011, we could
see substantial price cuts
from Chinese manufacturers,
which would create
significant challenges for their
competitors, especially in
more cost-sensitive markets.

Technological Innovation
Efficiencies for most c-Si firms have registered only incremental gains over the last several years. Over the past year,
however, a number of prominent players have announced the development of new cell technologies to drive step-
function improvements in efficiency. Figure 12 details the firms that stand at the forefront of crystalline silicon efficiency,
both at the current juncture and looking to the future. Although SunPower and Sanyo both have been ahead of the
rest of the pack for years and continue to raise the efficiency bar, they have done so at the expense (quite literally) of a
higher cost structure. What is noteworthy about other firms on this list is that they are attempting to raise efficiencies
(although to lower levels than the two aforementioned companies) without imposing a meaningful increase in costs.

That each of these seven firms is employing a different approach to commercializing high-efficiency products should dispel
notions that we have reached the end of the road as concerns technological progress in crystalline silicon manufacturing.
As with the larger question of PV absorber materials, there is a long way to go before the dust will truly settle on which
variant(s) of c-Si will emerge as the dominant leader, if any. It can be safely assumed, however, that the success or
failure of the firms on this list will, to a significant degree, determine which technology paths the current mass of relatively
undifferentiated c-Si producers will follow over the next five years.

8
 Figure 12: Efficiency Leaders in Crystalline Silicon PV
High-
efficiency Commercialized
Firm Technology Description Assessment
Product Cell Efficiency
Status
JA Solar SECIUM Uses nanoparticle ink from Pilot (production 18.9% (pilot) Since JA is already the cost leader in cell
equipment vendor Innovalight began May 2010; manufacturing, SECIUM (if ramped up to volume
commercial successfully) could provide it pole position on both
production expected cost and efficiency fronts. However, low barrier
H2 2010) to entry for competitors also using Innovalight
product.
Sanyo Heterojunction Hybrid of monocrystalline Volume production 19.8% Costs considerably higher than standard c-Si;
with Intrinsic thin silicon surrounded by ultra-thin (2009: 255 MW) should hold #2 spot in commercial efficiency
film (HIT) amorphous silicon layers in near-term, but this will matter less unless it
achieves step-function improvements in cost.
Enjoys competitive advantage in Japan, given
space constraints.

Solarfun Selective emitter “Low surface doping
monocrystalline concentration everywhere
on illuminated surface of cell
except directly beneath metal
electrode”
Suniva ARTisun Has its own paste and texture
monocrystalline recipes, is able to customize
and optimize every layer of
the cell design to its own
specifications
SunPower All-back contact Moves metal contacts to the
monocrystalline back of the wafer, maximizes
working cell area, eliminates
redundant wires
Suntech Pluto Unique texturing technology
Power monocrystalline with lower reflectivity ensures
more sunlight can be absorbed
throughout the day even without
direct solar radiation; thinner
metal lines on the top surface
reduce shading loss
Trina Solar Quad Max Square shape allows it
square to harvest more sunlight
monocrystalline by avoiding surface area
loss typical with traditional
monocrystalline cells, which
are octagonal-shaped
Yingli PANDA N-type Greater impurity tolerance
Solar monocrystalline, and does not suffer from
nanoparticle ink light-induced degradation
that conventional P-type
cells do. Yingli claims the
module will also have better
performance under high
temperature/low light
Development (first 18.5% (development) Planning on converting 160 MW of cell capacity
shipments expected to Selective Emitter; if successful, would improve
Q1 2011) competitive positioning substantially, but targets
may not be realistic inside timeframe.
Volume production 18.3% Lower efficiency than SunPower/Sanyo, but has
(2009: 16 MW) a much better cost structure. This, combined with
its current efficiency advantage over other firms,
makes it competitively positioned for right now;
future competitiveness depends on development of
differentiated technology.
Volume production 22.0% Gen 3 to exceed 24%; likely to be the efficiency
(2009: 398 MW) leader for foreseeable future. As company
approaches efficiency ceiling, high cost structure
will come under increased scrutiny. Downstream
business affords it some measure of insulation.
Low-volume (2010 19.0% Offers higher efficiency with potential to
run rate of 4 MW per simultaneously lower costs; company has had
month) trouble ramping production beyond its current
levels of 4 MW/month.
Development 18.1% (pilot) Lowest current efficiency amongst high-
(first shipments efficiency initiatives, but will matter less if
expected Q3 Quad Max does not represent meaningful
2010) increase in manufacturing costs. Quad
Max would drive 0.6% increase in module
efficiency, which would boost product
margins.
Pilot (commercial 18.5% (pilot) N-type’s higher impurity tolerance also
launch in Q3 gives Yingli the option of using lower quality
2010) (thus cheaper) polysilicon for its cells, which
confers a direct cost advantage. This would
further cement the firm’s position as the
lowest-cost c-Si manufacturer in the world.
Also plans on leveraging Innovalight silicon
ink solution.

9
 Figure 13: Q/Q Price Movement, Q1 2008 - Q2 2010) Downstream Integration
and Acquisitions

The market turn of late 2008

led to a violent shift in pricing
power from the upstream
segments of the PV value chain
into the hands of installers and
developers. With their distance
from the end-customer, many
cell and wafer firms were left
vulnerable to the vagaries of the
market, and suffered large price
declines and losses as a result;
as shown in Figure 13, price
drops in wafers and cells during
the oversupply period were
steeper and more persistent
than those for modules.

As a consequence of this,
the past twelve months
Figure 14: Recent Downstream Movements in Crystalline Silicon
have witnessed a series of
Date Firm(s) Involved Type Description downstream movements
Oct 2009 MEMC - SunEdison Acquisition - Developer Wafer manufacturer integrates downstream by upstream players, the
into project development; allows utilization most noteworthy of which
of cash on balance sheet and exploits value
chain synergies are detailed in Figure 14.
Nov 2009 Applied Materials - Advent Acquisition - Module Equipment vendor purchases back-contact As shown, these have taken
Solar Technology Emitter-wrap-through IP, aims to leverage in various forms, from the
future equipment design purchase of a prominent
Jan 2010 Motech - GE Purchase - Module Plant Cell manufacturer integrates downstream developer (SunEdison) by
into module production; provides foothold
into U.S. market a large wafer manufacturer
Feb 2010 LDK - Best Solar Purchase - Module Plant Wafer manufacturer integrates downstream
(MEMC), to cell firms (JA Solar,
into module production China Sunergy) acquiring
Mar 2010 China Sunergy - CEEG SST, Acquisition - Module Cell manufacturer integrates downstream module suppliers, to cell and
CEEG New Energy Producers into module production wafer firms purchasing module
May 2010 MEMC - Solaicx Acquisition - Wafer Producer Acquisition of high-efficiency mono crystalline plants from other companies
wafer diversifies MEMC’s manufacturing
(LDK – Best Solar, Motech –
portfolio, as most wafer production is done
via outsourcing GE). However, in each case,
Jul 2010 JA Solar - Shanghai Acquisition - Module Producer Cell manufacturer integrates downstream the following arguments
Jinglong Solar into module production come into play:

1. Moving downstream gives a company a dedicated sales channel for its primary product (wafers/cells).
2. Greater proximity to the end-customer gives a company more control over its pricing destiny and allows for higher
profit margins (by capturing the margin at both cell and module levels, for example).
3. The company’s downstream business has a competitive advantage since it has lower input costs than its competitors.
4. Module production is a low value-add step and has very little complexity or technological risk. Moreover, it has
low capital risk for Chinese companies since most module assembly there is done manually.

10
 Figure 15: Recent Contract Manufacturing Agreements in Crystalline Silicon It is interesting to note that
Date PV Firm OEM Firm Description acquisitions of the type
Apr 2009 Evergreen Solar Jiawei Initial 100 MW cell, module production plant in China represented by the recent
Jun 2009 SunPower Jabil Circuit 100 MW module assembly plant in Mexico MEMC-SunEdison deal, whereby
Oct 2009 BP Solar Jabil Circuit 45 MW module assembly in Mexico, 90 MW in Hungary upstream players move into
Mar 2010 Q-Cells Flextronics 200 MW module assembly plant in Malaysia system sales and/or project
Apr 2010 SunPower Flextronics 75 MW module assembly plant in U.S.
development, have been few and
far between in the space. There
May 2010 SunPower Solar Semiconductor Module assembly for standard multi c-Si Serengeti product line
was a great deal of talk on the
part of module firms about integrating downstream back in the first half of 2009 in order to reduce exposure to sales
fluctuations and protect margins, but by and large, this situation has not materialized (the only other prominent example
is Q-Cells, which integrated downstream organically). A major reason for this is the shortage of bankable capacity once
demand picked back up in H2 2009, leading to a return to 20%+ margins for many suppliers. As the industry enters
more prolonged down-cycles and becomes more commoditized, module producers (especially high-cost ones) may
once again have to confront the issue of downstream integration as a means of differentiation and margin protection.

Figure 16: Recently Announced c-Si Module Assembly Plants in North America Contract Manufacturing
Estimated Production
Firm Location Value Chain Another key trend in the
Capacity (MW) Start Date
Canadian Solar Ontario, Canada Module 200 crystalline silicon PV industry
2011
Jabil Mexico Module 145 2010 over the past year and a half
Silfab Ontario, Canada Module 120 2011 has been the handing over of
Flextronics California, US Module 75 2010
component manufacturing to
contract producers; Figure 15
Opsun Panels Ontario Ontario, Canada Module 50 2010
displays recent activity in this
Siliken Ontario, Canada Module 50 2011
domain. Generally, the companies
Solar Semiconductor Ontario, Canada Module 50 2011
concerned have been higher-
Wanxiang Illinois, US Module 36 2010
cost manufacturers with strong
Suntech Power Arizona, US Module 30 2010
brand names, such as BP Solar,
Kyocera California, US Module 30 2010
Q-Cells, and SunPower, and the
Heliene Ontario, Canada Module 30 2010 prime beneficiaries have been
Photowatt Ontario, Canada Module 30 2010 Jabil Circuit and Flextronics. As
can be seen, there is a heavy bias
towards outsourcing module assembly: being a low-IP, low value-add step, it is particularly well suited to being contracted out.
Unsurprisingly, most of the contractors’ facilities (which have dedicated amounts of capacity reserved for specific customers)
are located in low-cost locations such as Malaysia (which has a ten-year income-tax holiday), Hungary, China, and Mexico.

Outsourcing production (particularly of modules) to a contract producer makes a great deal of sense: contracting
decreases capital expenditure, operating expenses, and employment risk, and ultimately manufacturing cost, and
allows the customer to focus its capital and energy on higher-value functions, such as R&D, sales, marketing,
and branding. Given that c-Si PV is a mature technology and is being increasingly commoditized over time, one
should expect this trend to gain further traction going forward. The question is which manufacturers are likely to
pursue it, and whether it will extend into wafers, cells, and thin-film PV production, as well.

Module Plants Spring Up in North America

A notable trend in 2009 and 2010 has been a stream of announcements from crystalline silicon suppliers about constructing
manufacturing facilities in Canada and the U.S. In the case of Canada (see page 15), an extremely generous feed-in tariff (US
$0.44-0.78/kWh depending on system size) and a high domestic content requirement for FIT eligibility (60% from 2011) in Ontario

11
 have led to a flurry of module plant announcements from manufacturers in that province. Barring a few exceptions,
most of these projects are in the 30-50 MW range, which may be a wise move, given that the long-term sustainability
of this approach (especially at current rates) remains in question. Similar considerations have driven expansion
decisions in the U.S., as well, as these are expectations of a rapidly growing commercial and utility-scale market and
the preference for locally sourced modules as a result of the “Buy American” clause in the Obama Administration’s
stimulus act. Moreover, in an effort to create “green jobs,” many cities and states in the U.S. offer generous incentives
to would-be manufacturers, including tax credits, exemptions, loans, and grants. The logic on part of manufacturers,
therefore, is that having a local presence will allow them to exploit manufacturing incentives, obtain stimulus funds,
and increase visibility to end-customers, particularly utilities.

Figure 16 details recently announced plants in North America; in total, this will amount to almost 1 GW in
additional capacity in the region by mid-2011. As shown, there is a clear preference for module assembly lines.
This is understandable, since modules are the closest step in the value chain to the end-user and locating
module production close to demand reduces sometimes hefty shipping costs and drives higher visibility to the
customer. Whether this trend continues will depend on the ramp-up in domestic installations, the cost spread
between Western and Eastern countries, and how strictly domestic content provisions (which are rather loosely
defined in the U.S. at present) are enforced.

European Manufacturers

European manufacturers had a horrendous first half of 2009, where they were faced with non-existent demand
followed by brutal price wars. The road from then to now has been slow and painful; firms have faced large layoffs
and capacity shutdowns (Q-Cells, REC), painful restructurings (Q-Cells, Solon), balance-sheet crises (REC, Solon),
and sustained losses (Q-Cells, REC, Solon); only SolarWorld emerged stronger from the market turn, thanks to its
vertically integrated manufacturing model, diversified manufacturing presence, and strong presence in the German
residential market. In the last two quarters, however, price stability and robust demand has allowed European
manufacturers to rebound strongly: most have had a successful 2010 to-date, and the outlook for the rest of the
year is extremely positive, as well. Most of these manufacturers have also recovered to a point where they are now
expanding capacity across all steps of the value chain.

Figure 17 provides an update on the current status of prominent European manufacturers. It is interesting to note the
variety of strategies and business model adjustments that have been undertaken by the firms on this list. These include:

»» Focus on vertical integration (Solarworld, REC)

»» Production expansion in low-cost location (Q-Cells, REC)
»» Downstream integration into modules and systems (Q-Cells)

»» Acquisition of a technology-diversified portfolio of companies with a main emphasis on c-Si cell manufacturing (Bosch )
»» Focus on less price-sensitive markets (Centrosolar)

It is also interesting to note that many of these manufacturers have managed to increase their sales to foreign
(i.e., non-German) markets substantially in 2010. This reflects awareness that Germany post-2010 will no longer
be as lucrative a hunting ground on account of the severity of the FIT reductions that will hit starting in 2011 (see
pages 22-23). Here, key markets include Italy, France, and Eastern Europe. Whether these firms will be able to
handle the inevitable penetration of Chinese manufacturers into these markets as well without major changes to
their business model is, however, questionable.

12
 Figure 17: Key European c-Si Manufacturers and Current Status

Recent Developments
Project Development

YE 2010 c-Si Capacity

2009 c-Si Production
Polysilicon

Thin-film
Location

Modules

Systems
Wafers
Cells

(MW)

(MW)
Firm

Aleo Solar Germany, √ 139 200 Produced 133 MW in H1 2010; aims at EUR 480M
Spain revenue, 50% foreign sales in 2010; looks to be
acquired by Bosch shortly
Bosch Solar Germany √ √ √ √ √ √ √ 130 (wafers), 170 180 (wafers), Incorporated CIS producer Johanna under Bosch
(cells), 0 (modules) 370 (cells), 90 name; has controlling interest in Aleo, may acquire;
(modules) opened new cell plant in Q3 2010; entered into
power plant construction
Centrosolar Germany √ √ √ 93 150 Business focus on selling complete residential
rooftop systems, including BIPV and thin-film; 8%
EBIT margin in H1 2010; production at full capacity
since May 2009; France is strongest market for
components and systems
Q-Cells Germany, √ √ √ √ √ 537 (cells) 1100 (cells) Undertook change of strategic direction in mid-
Malaysia 2009; formed systems business (QCI) in 2009,
entered module sales (via Flextronics) in 2010;
ramping up Malaysia fab; divesting from all thin-film
investments except Solibro
REC Germany, √ √ √ √ 818 (wafers), 134 2104 (wafers), Singapore production ramping up on all three fronts,
Norway, (cells) 116 (modules) 455 (cells), 224 expected module production in 2010 = 4X 2009 levels;
Singapore (modules) solar business still running at small operating loss in Q2
Solarworld Germany, US, √ √ √ √ √ 648 (wafers), 194 1250 (wafers), Total H1 2010 shipments at 377 MW and all
South Korea (cells) 288 (modules) 625 (cells), 950 production sites running at full capacity; Expanding
(modules) capacity for all products at all locations; H1 y/y
revenue up 50%
Solon Germany, US, √ √ √ √ 132 (modules) 435 (modules) Successful refinancing in Q2 2010; Positive
Italy cashflow in Q2 2010; expects 250 MW production
in 2010; break-even EBIT; weak balance sheet
affecting systems business. New industrial module
lowers costs by 20%

Crystalline Silicon PV: Looking Forward to 2011 is an excerpt from the new GTM Research report ‘PV Production, Technology
and Cost: 2010 Forecast.’ This authoritative report contains a comprehensive analysis of the PV supply chain. It provides detailed
estimates and forecasts of PV cost structure, technical characteristics (efficiency, degradation), volumes (capacity and production)
for all major components (wafers, cells, and modules) and all major technologies through 2013. Additionally, it details projected
market share and selling prices by technology through the bottom-up construction of global supply and demand curves for PV,
and profiles the leading 150 manufacturers in the PV space.

The full ‘PV Production, Technology and Cost: 2010 Forecast’ is available for purchase at
www.gtmresearch.com.

13

North American News
SunEdison Awarded 16.7MW equipment costs. Construction on three
of Solar Projects of the 15 rooftop PV systems is expected
SunEdison has been awarded a
ground-mounted 14.5MW solar
service contract with the Davis-
Monthan Air Force Base (DMAFB)
in Tuscon, Arizona and a contract
for 2.2MW of rooftop installations
for GE Capital Real Estate.
The 14.5MW solar installation is made
possible through a solar power service
agreement in which SunEdison will
finance, design, construct, operate and
maintain the approximately 130-acre
ground-mounted solar deployment.
SunEdison will also maintain a long-
term ground lease agreement with
DMAFB for the use of their land for the
solar installation. In return, DMAFB will
purchase the energy produced from the
solar power plant to offset their demand
from the grid at long-term predictable
energy pricing. There are no upfront
costs required from DMAFB for the
solar deployment. When completed,
the 14.5MW solar farm will produce
approximately 31.5 million kWh of
energy annually and over 575 million
kWh over twenty years. It is expected
that once completed, the 14.5MW
solar power plant will deliver 35% of
DMAFB’s total base load of energy.
For GE Capital Real Estate, SunEdison will
also finance, build, own, operate, monitor
and maintain photovoltaic solar energy
systems with capacity totaling 2.2MW.
GE Capital Real Estate will receive lease
revenue for rooftop space allocated to
the projects, without any upfront capital
14
PV News
SoloPower is targeting the
commercial and industrial flat-roof
to begin this fall. The majority of projects market with applications that favor a
will be located in the Greater Toronto lightweight, non-penetrating flexible
Area, including Vaughan, Brampton, solar solution. The SoloPower panel
Burlington, Markham and Mississauga, can be rolled up and walked on, and
with additional systems located in the flexible units can be affixed to the
London. The projects will be hosted at roof with an adhesive or mounted on
GE Capital Real Estate facilities, and the a lightweight non-penetrating rack.
Ontario Power Authority will purchase
the energy produced under the terms
of Ontario’s Feed-In Tariff Program (see
pages 24-25).
www.sunedison.com
MiaSolé to Supply juwi with
600MW of CIGS Panels
Source: Ascent-Solar
MiaSolé has signed a multi-year
purchase agreement to supply juwi SoloPower’s thin-film modules were
Solar with 600MW of their CIGS tested to UL 1703, the standard for
(Copper Indium Gallium Selenide) safety for PV module manufacturing.
solar panels. This order is a huge SoloPower’s CIGS competitors are also
boon to MiaSolé, which earlier in 2010 aiming towards UL and IEC approval.
set the goal to ship 22MW worth of
As reported by Greentech Media,
panels by the end of the year. As
according to Brian Blackman of
outlined by the agreement, MiaSolé
Ascent Solar, another flexible CIGS
will ship 50MW to juwi in 2011.
solar vendor, “If you don’t have IEC,
www.miasole.com then UL is just a symbol. We’ve
www.juwisolar.com
submitted our modules for IEC
approval. From our perspective,
SoloPower Earns UL it’s irrelevant unless you have the
Certification for Flexible CIGS IEC -- you have to have the 20-year
Panels; Moves Closer to Market lifetime.” Ascent just released its
new WaveSol module. The five-
San Jose-based SoloPower has meter, flexible panel is capable of
announced that their flexible producing up to 320 watts.
CIGS panels have received UL
www.solopower.com
Certification, which the company
claims to be an industry first.
 Ontario Ups Mandates for
Domestic Content in 2011,
Concerns About Supply
Arise While Others Anticipate
Market Boom
With its aggressive solar feed-in
tariff (see pages 24-25), Ontario’s
solar market grew rapidly in 2010.
The number of 2010 installations
is on track to rise over 250% from
the 2009 figure. However, new
regulations that mandate the use
of locally manufactured PV supplies
could cause growth to slow in 2011.
In 2010, 40% of the components
for residential installations and 50%
of the components for commercial
installations have to be sourced locally.
In 2011, all installations must adhere to
a 60% domestic content requirement.
Japan has even filed an official
complaint with the World Trade
Organization (WTO) over the
situation. In the European Union,
laws prevent countries from
mandating local content use and
Japan is concerned that pricing
guarantees offered in Ontario require
subsidies that are not allowed under
international trade law.
The Italian company Silfab has already
registered a new Canadian subsidiary,
Silfab Ontario Inc., and since last June
has invested CAD $15 million into
the project. With a 100,000-square-
foot manufacturing space already
acquired, the company is ramping
up for production. In early September,
Silfab announced that it would be
broadening its manufacturing abilities
to produce not only its mono- and
multi-crystalline modules, but also
OEM products for outside partners
who are looking to meet the domestic
content requirement.
15
While this new mandate in Ontario
will drive job and industry growth in
the province, there will certainly be a
shortage of components for at least
the first quarter of 2011. Companies
such as Canadian Solar, Fronius,
Silfab, and SMA stand to reap the
benefits of this program.
fit.powerauthority.on.ca
Dow Readies for Production of
Solar Shingles
About a year after announcing its
Powerhouse Solar Shingles, Dow
Chemical is now preparing to start mass
production at its Midland, Michigan
factory. The shingles are solar panels
that can be integrated into rooftops with
standard asphalt materials.
In 2007, the company received
$20 million in funding from the U.S.
Department of Energy to develop
‘building-integrated’ solar arrays
for the residential and commercial
markets. What they came up with
is a CIGS panel that also acts as
protection for a house’s roof. This
design reduces installation costs
because the conventional roofing
shingles and solar generating
shingles are installed simultaneously
by roofing contractors; no specialized
skills or knowledge of solar array
installations are required.
Source: Dow Solar
Dow expects at least 100 jobs will be
created in preparation for opening
the facility en route to ultimately
hiring up to 1,200 workers to run
the new manufacturing plant.
www.dow.com
Honeywell Makes Announcements
for Solar Module Efficiency and
Protection
Honeywell introduced two new
product lines at this year’s
European Photovoltaic Solar
Energy Conference (PVSEC), the
first being a new series of dielectrics
and dopants for crystalline silicon
solar panels. These materials can
accelerate the manufacturing
process, slow product degradation,
and boost efficiency.
Dopants are formulated chemicals that
alter the electrical properties of silicon
and can be applied to selectively
change the electrical properties of
specific parts of solar cells. Dielectrics
are formulated chemicals that act as
electrical insulators, preventing the flow
of electric current through certain areas
of the PV cell. The dielectric materials in
use in Honeywell’s products have been
designed to provide other benefits,
such as acting as a passivation layer to
prevent harmful recombination effects,
a diffusion barrier to prevent unwanted
diffusion of dopants into certain
regions, and a masking material.
Honeywell dopants will enable broad
adoption of n-type Si substrates instead
of currently dominant p-type Si, thus
eliminating detrimental effects of the
light-induced degradation that is an
inherent property of p-type Si. These
new materials can be applied to Si wafers
using inexpensive, high-throughput
methods such as screen-printing and
ink-jet printing, methods that are well
 proven on the industrial scale in PV and
other electronic manufacturing.
Honeywell also announced its
expanded line of PowerShield backing
systems. The new model, called PV270,
is 30 percent lighter than traditional
backing systems, while providing the
same level of protection and insulation
as traditional backing materials.
Source: Honeywell Solar
The structure of the PV270 has been
optimized to decrease the number of
times manufacturers need to change
the rolls of backsheet, allowing for
longer periods of manufacturing up-
time. Once installed, the backing
systems help seal and protect the
electrical components of solar panels
to prevent shorting and power loss
under adverse weather conditions.
The backing is comprised of two outer
layers, one a fluoropolymer film and the
other a proprietary special polyolefin
thermoplastic. Sandwiched between
the outer films is a polyethylene
terephthalate (PET) layer. This inner
layer is bonded to the outer layers
with a proprietary adhesive system.
www.honeywell.com
Sustainable Energy and tenKsolar
Offer Integrated PV System for
Large-Scale Rooftop Applications
Sustainable Energy Technologies of
Calgary, Canada and tenKsolar, based
in Minnesota, have partnered to deliver
16
tenKsolar’s RAIS Wave PV system,
which is designed for commercial, flat-
roof applications. The panels and racking
systems will be paired with Sustainable
Energy’s inverter technology.
The RAIS Wave system is unique
because the panels are completely
interchangeable with no dependence
on other panels in the system.
According to tenKsolar, if one particular
cell is shaded, only that cell suffers in
output and the rest of the system is
unaffected, unlike normal systems that
are tied together in groups.
The companies expect this ultra-
efficient combination of the parallel
design of the Sunergy inverter and
the tenKpanel will set them apart in
the commercial rooftop sector. They
have already received 1.2 MW worth
of orders, including a 1 MW purchase
from the Stuart C. Irby Company, a
large electrical distributor.
Source: tenKsolar
www.tenKsolar.com
www.sustainableenergy.com
Solaria Raises Additional $20
Million in Series D Financing
After Signing 5-Year Supply Deal
Solaria, which raised $45 million in
capital this past May, has just closed
another funding round, bringing the
total up to $65 million. Solaria’s
technology is based on dicing or
“singulating” a standard crystalline
silicon wafer and mounting these
strips on a substrate with a lensing
system that essentially halves the
requirement for silicon. The lensing
and concentration is integrated into
the rolled cover glass, representing
a significant change from an earlier
acrylic sub-assembly design.
Three weeks before the funding
round, enXco, an EDF Energies
Nouvelles Company, and Solaria
forged a five-year global supply
agreement under which Solaria
will supply their solar module to
enXco. EnXco made a small equity
investment in Solaria, as well. EDF
develops, constructs, operates and
manages wind and solar projects
throughout the U.S.
www.solaria.com | www.enxco.com
SunPower Working on Solar
Energy Storage
After winning a $1.8 million grant
from the California Public Utilities
Commission (CPUC), SunPower
is looking to demonstrate the
integration of energy storage
systems with existing PV systems for
commercial customers. SunPower
is partnering with Ice Energy, Xtreme
Power and ZBB Energy and working
with an unnamed major retailer
to demonstrate the benefits of
combining PV with energy storage.
The “unnamed major retailer” is, in
fact, named in the CPUC release
– it is Target Stores. The program
will be implemented by SunPower
in conjunction with PG&E, KEMA,
Sandia National Laboratories and
Target. The CPUC grant is part of
the California Solar Initiative (CSI)
RD&D program (‘RD&D’ stands
for Research, Development,
 Deployment and Demonstration).
The CSI aims to create 1,940
megawatts of new, solar-produced
electricity by 2016 with a budget of
$2.2 billion over 10 years.
www.sunpowercorp.com
www.ice-energy.com
www.xtremepowerinc.com
www.zbbenergy.com
Petra Solar Wins Prestigious
SEGIS Contract
Sandia National Laboratories has
awarded Petra Solar its prestigious
Solar Energy Grid Integration
Systems (SEGIS) contract as part
of the U.S. Department of Energy
Solar Energy Technologies Program.
Petra has now won a total of $5.8
million worth of federal grants.
Through the contract, Petra Solar
will extend its development of
electric grid stabilization, micro-
grid and smart grid technologies,
which will enable utilities to manage
the massive increase in renewable
energy deployment expected as the
renewable energy markets grow.
Source: Petra Solar
The state of New Jersey plans to install
more than 200,000 modules from
Petra on existing utility poles and tie
them into the grid. These line voltage
inverters have advanced smart grid
and communication capabilities.
Petra Solar won the SEGIS Stage
3 contract, which is designed to
help the winning company push its
products toward commercialization.
17
The contract – worth about $3 million
– was awarded in a competitive
process that drew a number of
prominent industry names. Petra
Solar’s research has focused on three
issues: enabling utilities to better
monitor and control solar electricity
as it becomes part of the mix of
electricity sources, helping utilities
prevent grid instability that can result
from the high penetration of solar into
the grid, and creating technological
tools to allow the electricity system
to accept and use solar and other
cleantech resources more broadly
among its energy sources.
www.petrasolar.com
European News
Sulfurcell Unveils CIGS Cell
With 10.7% Efficiency
At PVSEC, Sulfurcell Solartechnik
unveiled prototypes for its new
product line, which consists of 1.25m
by 0.65m modules with a considerably
increased efficiency of 10.7% and a
peak output of 86.8 watts.
After an intensive development
phase lasting just four months, in
July of this year Sulfurcell succeeded
in producing the first prototypes of
large-format CIGS solar modules with
efficiencies greater than 10%. This
represents a milestone for the highly
specialized experts in Sulfurcell’s
research department, since very
few manufacturers of thin-film solar
modules are currently capable of
producing high quality modules with
efficiencies in the double digits.
Scientists have already been able
to produce CIGS solar cells with
efficiencies greater than 20%
under laboratory conditions. In
order to exploit this potential,
Sulfurcell’s CIGS process deploys
co-evaporation techniques.
The manner in which these are
utilized to manufacture the record-
breaking cells depends, however,
on proprietary design features and
components. A major advantage
of this process is that the CIGS
layer properties can be precisely
configured, which enables the
material’s potential to be exploited
to the fullest extent. The company’s
medium-term technology roadmap
is clearly defined: Sulfurcell is already
aiming to surpass the 11% threshold
in 2011 and the 12% threshold in
2012. Module efficiencies exceeding
14% are realistic by 2015.
www.sulfurcell.com
Oerlikon Continues Driving
Amorphous Silicon
Oerlikon Solar remains committed
to amorphous silicon (a-Si) solar
technology and, to that end, is
promising improved efficiency
trends and improved cost numbers.
Oerlikon clearly believes there’s
a future for the oft-pilloried a-Si
photovoltaic technology and the firm
continues to make aggressive cost
and performance claims.
At PVSEC, Oerlikon unveiled new
technology that looks to drive down cost
and increase efficiency in its thin-film
solar production lines. The rechristened
“ThinFab” includes a number of changes
to the equipment and process:
 »» New generation of the core
equipments PECVD, TCO and Laser
»» Thinner cell structures with
reduced degradation and
reduced gas consumption
»» Stabilized module efficiency of
10 percent (143 Wp per module)
»» New low voltage module
design, based on simplified new
backend equipment
According to Oerlikon’s Chris O’Brien,
these advances will put company into
a cost leadership position in PV.
O’Brien made the bold promise of 50
Euro cents per watt ($0.64 per watt)
product cost and 10% efficiency by
the end of this year. Working in tandem
with Corning, Oerlikon has achieved
11.9% conversion efficiency, which
has been confirmed by the National
Renewable Energy Laboratory (NREL).
www.oerlikon.com
British Gas to Install Solar Panels
on Thousands of Homes for Free
British Gas, one of the U.K.’s largest
energy providers, will offer thousands
of residents the opportunity to install
solar panels on their homes. Those
who choose to take advantage of
the program can either have the
system installed free of charge but
benefit only from reduced energy
prices, or they can finance the up-
front costs and also receive a greater
payout from the country’s feed-in
tariff. For the moment, the program
is capped at 1,500 installations.
British Gas will work with mySolar
Energy to provide complete
installation services, including home
assessments, providing customers
18
with a certificate of expected panel
performance (CEPP) to estimate
the value the panel will add to the
property, and helping those who
qualify apply for the FIT.
Should customers choose to buy
the panels outright, they will benefit
from both the electricity that they
produce and the FIT payments. To
help entice customers to actually
purchase the panels, British Gas is
offer a two-year, 0% APR deal.
www.britishgas.co.uk
IMEC Produces Large-Area
Cells With 19% Efficiency
At PVSEC, IMEC presented several
new large-area silicon solar cells
with more than 19% conversion
efficiency. The silver-printed
contacts were able to achieve
19.1% efficiency and the copper-
printed contacts reached 19.4%.
These efficiencies proved possible
through the use of improved texture
and firing conditions. Moreover, the
results were achieved on large-area
cells measuring 148cm2, proving
the industrial viability of the process.
IMEC’s silicon solar cells feature
rear-side passivation, laser ablation,
and local aluminum back-side field
and screen-printed contacts or
Cu-plated contacts on advanced
emitter schemes.
www.imec.be
AEG Power Solutions Unveils
Ultra-Efficient Poly-Silicon
Power System, Announces
Partnership With GT Solar
At PVSEC, AEG Power Solutions
unveiled the company’s new Thryobox
PI power system. AEG claims that
this new system will increase the
production output of their polysilicon
reactors by 10% to 20%, thus
increasing overall efficiency.
AEG is also partnering with GT Solar
to offer the Thyobox PI system as
part of a turnkey solution using GT
Solar’s SDR series of CVD reactors.
This next-generation power system
is designed to be integrated with
GT’s SDR-400 to enable reactor
capacities over 500 MTA.
www.aegps.com | www.gtsolar.com
Asian News
Chinese Wafer Makers GCL-Poly
and Comtec Accrue Orders in
Excess of 600MW
GCL-Poly Energy has signed a
second long-term wafer supply
contract with DelSolar, a solar cell
and module provider in Taiwan,
further strengthening the long-term
strategic alliance between the two
companies. GCL-Poly will provide
to DelSolar high quality wafers
that can meet the needs of about
664MW cells from October 2010 to
December 2015.
The agreement includes a
mechanism by which the parties
may adjust prices to better reflect
prevailing market conditions.
DelSolar expects the alliance
to greatly enhance its overall
operational needs and profitability.
GCL-Poly also recently won RMB
5 million worth of funding from the
National Electronic Information
Industry Fund to explore processes
 that will reduce the cost of producing
silicon. The company plans to
further its closed recycling system
to help bring costs down.
Mono-crystalline wafer manufacturer
Comtec Solar Systems has signed
new wafer supply framework
agreements with price subject
to negotiation to provide major
customers Gintech Energy
Corporation, Jetion Solar, CHINT
Group Corporation and Neosolar
Power Corporation for a total of
approximately 200MW in mono-
crystalline solar wafers.
Under the terms of the contracts,
Comtec will supply each of the
GinTech, Jetion, Chint and Neosolar
with approximately 50MW of mono-
crystalline wafers from January 2011
to December 2011.
www.gcl-poly.com.hk
www.comtecsolar.com
Masdar PV to Supply Thin-Film
Modules for Indian Villages
Masdar PV, manufacturer of large-
area, thin-film solar modules, has
signed a contract with IG Solar for
the supply of silicon-based thin-film
PV modules for a total of 1.5MW. The
solar modules from Masdar will be
used in new buildings of the Indian
construction project developer
MAG, who develops villages with
the key goal of sustainability.
Over the next 12 months, ten of
these villages will be built utilizing
the PV modules on the roofs of the
individual dwellings. Each village is
designed to support 3,000 residents
with full carbon-neutrality and
efficient water supply and disposal
19
systems. These self-sufficient
villages are being developed to
combat the energy-deficient slums
that are located on the outskirts of
the country’s major cities.
www.masdarpv.com | www.igsolar.in
SunEdison Signs MOU to Build
400MW of Solar Projects in
South Korea
SunEdison and Gyeongsangnam-do
(GSND), a provincial government
in southeastern Korea, have
announced the execution of a
non-binding Memorandum of
Understanding (MOU) for the
establishment of 400MW of solar
power plants in the Korean province.
Subject to negotiation and
completion of definitive agreements,
it is expected that SunEdison will
utilize public land and building
rooftops to construct 400MW of
solar power plants. GSND would
support SunEdison by securing
the proper land or building areas
and in completing the authorization
and permission processes. The
projects should be completed by the
end of 2013.
www.sunedison.com
http://english.gsnd.net
LDK Starts Construction of 1.5GW California Considers Next-
Manufacturing Plant in Hefei Generation Feed-In Tariff
Multi-crystalline solar wafer
manufacturer LDK Solar has broken
ground on a new 1.5GW solar cell
and module manufacturing facility
in Hefei, China. With construction
slated to finish by year-end and
production starting in March,
LDK hopes to produce 1GW of
crystalline-based solar cells and
500 megawatts of solar modules.
In addition to this plant in Hefei,
operation has started at LDK’s
Xinyu production line, which has an
expected annual output of 5,000
metric tons. All of this additional
production capacity comes in the
wake of recent deals, such as LDK’s
50MW agreement with Italy’s Enel.
www.ldksolar.com
JA Solar Signs 500MW Supply
Agreements
JA Solar Holdings has announced
that it has secured over 500MW
of supply agreements for 2011.
Deliveries of the company’s mono-
crystalline and multi-crystalline
solar cells will begin in January
and continue through December of
next year. In August, JA Solar raised
its 2010 sales forecast and said it
would increase its manufacturing
capacity to 1.8GW by year-end from
a previous target of 1.5GW.
www.jasolar.com
Solar Policy
In late August, the California Public
Utilities Commission (CPUC)
proposed to launch a new renewable
incentive program designed to
drive mid-sized renewable energy
development. This next-generation
 feed-in tariff program will require
investor-owned California utilities to
purchase electricity from renewable
energy systems between 1 and
20MW in size.
The CPUC proposal establishes
a 1GW pilot program for power
from eligible mid-sized renewable
energy systems. The program
requires California’s three largest
investor owned utilities to hold
biannual competitive auctions into
which renewable developers can
bid. Utilities must award contracts
starting with the lowest cost-viable
project and moving up in price until
continued from page 1...
SEIA/GTM Research Quarterly Survey Results; Pennsylvania Makes a
Big Leap in the US PV Market
the standard, they must purchase
Pennsylvania’s version of SRECs,
Alternative Energy Credits (AECs).
Currently, the solar requirements
are fairly minimal (0.012% in 2010
& 0.0203% in 2011), and PPL was
exempt from participating until this year.
PECO’s exemption ends next year.
Unlike New Jersey, Pennsylvania
has yet to define a specific SACP,
which is the punitive fine that energy
suppliers must pay if they do not
meet the state’s AEPS. This has
created a significant level of price
uncertainty in the AEC market. As
of right now, the fine is double the
average price of the AECs trading in
the previous energy year. The SACP
is $550 for 2010. There is a bill being
circulated in the Pennsylvania House
20
the MW requirement is reached for
that round. The program will use
standard terms and conditions to
Calendar
lower transactional costs and provide
the contractual transparency needed September
for effective financing. Development
security and relatively short project 2nd International
development timelines ensure project Photovoltaic Solar
viability. The Commission can act to Energy
finalize and adopt the program in as Beijing, China
soon as thirty days. September 27 - 29
www.ipvsee.com
October
Solar Power 2010
Los Angeles, California, USA
October 12 - 14 2010
www.solarelectricpower.org
Solar Industry
Conference (CIS-ES)
Madrid, Spain
October 21 - 22
www.solarpraxis.de
of Representatives that would set
the 2011 SACP at $450 with a 3% 5th International
annual decrease, but would raise the Exhibition Energy-
solar requirement to six times what Photovoltaic ‘10
is currently mandated (0.5% vs. 3% Athens, Greece
by 2024). Though the bill currently October 21 - 24
under review in the House has the www.leaderexpo.gr
potential to alter the market, it is still
a long way from passing. PV Taiwan 2010
Taipei, Taiwan
Even with the current solar October 26 - 28
requirements set relatively low,
www.pvtaiwan.com
Pennsylvania’s AEPS is already
driving substantial market growth.
Installation and pricing data and
forecasts are available for Pennsylvania
and the other top-20 state markets
in the latest SEIA/GTM Research
Quarterly U.S. Solar Market Report
available at www.gtmresearch.com.
 PV DATA

Utility-Scale Project Pipeline/ Large-Scale Project

Announcement Tracker

U.S. UTILITY PV PIPELINE! CONTRACTED US UTILITY PV PIPELINE BY EXPECTED

10,000! COMPLETION DATE!
1,800!
9,000!
1,600!
8,000!
1,400!
CAPACITY (MW-DC)!

7,000!
9,341!
1,200!
6,000!

MWDC!
5,000! 1,000!

4,000! 800!

3,000! 600!

2,000! 400!
4,439!
1,000! 200!
172!
0! 0!
OPERATING ! CONTRACTED (PPA ANNOUNCED (PRE- 2010! 2011! 2012! 2013! 2014!
SIGNED)! CONTRACT)!

Est.
State/ Projected
Date Country Developer Size Completetion Est. Cost Notes
Region Start Date
Date
3-Sep Italy Lombardy Martifer Solar 3MW
9-Sep Italy Puglia Schneider Electric 43MW
31-Aug Slovakia Slovakia Phoenix Solar 2.2MW Dec-10
27-Aug United Ecotricity 1MW
Kingdom
25-Aug USA CO Premier Power 3MW $18.3
million
26-Aug USA NV Nevada Solar Works 1.3MW Oct-10
30-Aug USA CO SunPower 2MW late-2011 US Government Contract
30-Aug USA IN SunPower 1.8MW Jan-11 US Government Contract
1-Sep USA CO Main Street Power 2.8MW Sep-10
2-Sep USA UT NexGen Energy/Bella 2.6MW
Energy
8-Sep USA HI Sunetric 600kW Oct-10 $2.5 million
10-Sep USA NC ESA Renewables 1MW Nov-10
14-Sep USA AZ SunEdison 14.5MW 2011 Ground-based system at US Air
Force Base

Starting this month, PV News will begin to track the announcements of large scale projects and maintain a
database with the most up-to-date information regarding utility scale PV installations that are operating or in
the planning or construction phases.

21
 PV News Feed-In Tariff Tracker

European Feed-In Tariff Tracker

System 2011
Country kWp/location 2009 2010 2011
Type Digression
Jan 1- Jun 1 Jul 1 - Oct 1 Oct 1 - Dec 31
<30 € 0.32 € 0.28 € 0.24 - 0.25 € 0.24 9%* € 0.21 - 0.23
30-100 € 0.32 € 0.28 € 0.24 - 0.25 € 0.24 9%* € 0.21 - 0.23
Ground Mount
100-1000 € 0.32 € 0.28 € 0.24 - 0.25 € 0.24 9%* € 0.21 - 0.23
Germany

>1000 € 0.32 € 0.28 € 0.24 - 0.25 € 0.24 9%* € 0.21 - 0.23

<30 € 0.43 € 0.39 € 0.34 € 0.33 9%* € 0.30
30-100 € 0.41 € 0.37 € 0.32 € 0.31 9%* € 0.29
Rooftop
100-1000 € 0.40 € 0.35 € 0.31 € 0.30 9%* € 0.27
>1000 € 0.33 € 0.29 € 0.26 € 0.25 9%* € 0.23

Ground Mount € 0.28 € 0.32 45.0% € 0.176

Spain

<20 € 0.34 € 0.34 5.0% € 0.323

Rooftop
>20 € 0.31 € 0.31 25.0% € 0.233
Jan - Apr May - Sept -
Aug Dec
Ground Based; 1 to 3 € 0.39 € 0.38 12.3%* € 0.362 € 0.347 € 0.333
Classified as
3 to 20 € 0.37 € 0.37 17.8%* € 0.339 € 0.322 € 0.304
‘Other Systems’
for 2011 > 20 (20 - 200 for 2011) € 0.35 € 0.34 16.2%* € 0.321 € 0.309 € 0.285
200 to 1000 21.8%* € 0.314 € 0.303 € 0.266
1000 to 5000 22.4%* € 0.313 € 0.289 € 0.264
>5000 26.2%* € 0.297 € 0.275 € 0.251
1 to 3 € 0.39 € 0.38 0%* € 0.402 € 0.391 € 0.380
3 to 20 € 0.37 € 0.36 5%* € 0.377 € 0.360 € 0.342
> 20 (20 - 200 for 2011) € 0.35 € 0.34 5%* € 0.358 € 0.341 € 0.323
Rooftop
Italy

200 to 1000 7.7%* € 0.355 € 0.335 € 0.314

1000 to 5000 11.2%* € 0.351 € 0.327 € 0.302
>5000 15.6%* € 0.333 € 0.311 € 0.287
1 to 3 € 0.48 € 0.47 6.4% 1kW to 20kW € 0.44
1 to 3 (partially
€ 0.43
integrated)
20kW to
3 to 20 € 0.45 € 0.44 9.1% € 0.40
200kW
BIPV

3 to 20 (partially
€ 0.41
integrated)
>20 € 0.43 € 0.42 11.9% > 200kW € 0.37
>20 (partially integrated) € 0.39
Pre 9/1 Post 9/1
Roof-integrated

Residential <3 € 0.58 € 0.58 TBD

Residential >3 € 0.58 € 0.51 TBD
Schools and hospitals € 0.58 € 0.51 TBD
France

Other € 0.60 € 0.50 € 0.44 TBD

Non-integrated
€ 0.42 € 0.37 TBD
roof
Northern France € 0.38 € 0.33 TBD
Ground
Mount

Southern France € 0.31 € 0.27 TBD

Overseas € 0.42 € 0.40 € 0.35 TBD
22
 The PV News team is excited to introduce our European and North American Feed-In Tariff Trackers. These two
summary tables provide up-to-date information regarding government and utility performance-based incentives that
promote the use of solar technology.

System 2011
Country kWp/location 2009 2010 2011
Type Digression
<100 € 0.45 € 0.45 € 0.44 6.8% € 0.41
Mainland
Greece

>100 € 0.40 € 0.40 € 0.39 7.7% € 0.36

<100 € 0.50 € 0.44 € 0.42 7.1% € 0.39
Island
>100 € 0.45 € 0.49 € 0.47 8.5% € 0.43

BAPV <4 € 0.46 0.0% € 0.46

United Kingdom

<4 € 0.40 0.0% € 0.40

4 to 10 € 0.40 0.0% € 0.40
BIPV
10-100 € 0.35 0.0% € 0.35
100-5000 € 0.32 0.0% € 0.32
Standalone € 0.32 0.0% € 0.32
<30 € 0.48
Republic
Czech

All >30
€ 0.48

Country 2012 Notes Most Recent Alteration

Germany

7/1/2010 - eliminated for cropland field installations; 10/1/2010 - futher 3%

20 year term, FiT digression ~9%-13%. *Additional 1% digression reduction on all rates
for every 1GW installed over 3.5GW in 2010 7/1/2010 - 13% for rooftop installtions; 10/1/2010 - futher 3% reduction on all
rates
25 year term; adjusted quarterly. Annual hard caps on FIT: 502 MW
Spain

8/2/10 - FiTs decrease 45% for new, large ground-based plants, 25% for rooftop
in 2010 and 488 MW in 2011. Cap changes are perfectly negatively
systems >20kW, and 5% for rooftop systems <20kW
correlated tomovements in FIT.

9/8/10 - Under new legislation, feed-in tariffs for open-space systems with a capacity
20 year term; further annual degression of 6% is intended for all
up to 5MW are to be cut by 9.3% on average during the first four months of 2011,
Italy

non-integrated solar projects for the years 2012 and 2013. BIPV
while incentives for solar projects with a capacity of 5MW and more will be decreased
systems are to be subject to a degression rate of only 2%. 3GW cap
by 14.2%. The cuts for rooftop solar systems are expected to be between 4.75% and
for non-integrated systems and a 200MW cap for BIPV *Digression
13.28%, depending on the size of the system. All tariffs are then to be decreased every
rate calcuated through end of 2011
four months during 2011.
France

20 year term linked in inflation 9/1/2010 - 12% reduction for some rates

Country 2012 Notes Most Recent Alteration

Greece

20 year term indexed at 25% of inflation; new FiTs reduced at 1%

per month

€ 0.46
United Kingdom

€ 0.40
€ 0.40 25 year term; FiTs set through 2012 then subject to readjustment
€ 0.35
€ 0.32
€ 0.32
Republic

9/15/10 - Legislation passed that eliminates FiTs for ground-based systems,

Czech

20 year term linked in inflation (within range of 2%-4%) pending approval from Czech Parliament. If approved, changes become effective
March 1st, 2011.

23
 North American Feed-In Tariff Tracker
State/ System Contract Program
Utility/Region 2010 2011 Program Size Cap
Provinces Resitrctions Duration Type
$/kWh
IOUs & POUs with 75,000+
<3 MW $0.08-$0.19 10, 15, or 20 years Feed-in Tariff 478 MW
customers
IOUs 1-20MW TBD TBD Reverse Auction 1GW
California

Sacramento Municipal Utilities 100 MW (program full as of

<5 MW $0.18-$0.30 $0.15-$0.25 Expires 2016 Feed-in Tariff
District (SMUD) 8/2010)

<25 kW $0.32 20 years

4 MW/year (program cap reached
Gainsville Regional Utilities (GRU) Feed-in Tariff
through 2016)
>25 kW
Florida

$0.26
(freedstanding only)

<600 kW PV $0.05
5 years with Performance-
Orlando Utilities Comission None
< 1200 kW Solar automatic renewal Based Incentive
$0.03
Water Heating
Hawaii Electric Light Co. <2.72 MW $0.33
Hawaii

Maui Electric Co. <2.72 MW $0.28-$0.35 Performance-

20 years None
Hawaiian Electric Co. <5 MW $0.25 Based Incentive
Kuaui Island Utility Cooperative <5 MW $0.34
PG&E <10 kW $0.60-$0.65
10 kW - 100 kW $0.55
Pacific Power <10 kW $0.60 Expires 3/31/2015 or
Performance-
when program cap is 25 MW (program full)
Based Incentive
Oregon

10 kW - 100 kW $0.55 reached

Pacific Power & Idaho Power <10 kW $0.55
10 kW - 100 kW $0.55
$0.071- $0.071- Performance-
Eugene Water and Electric Board 10 kW - 1 MW 10 years None
$0.11 $0.11 Based Incentive
<20 kW Commercial/ $0.14
Performance-
Austin Energy Mult-family 10 years $100,000 in 2010
$0.175 Based Incentive
Texas

Installation
Performance-
CPS Energy (San Antonio) 25 kW-500 kW $0.27 20 years 5 MW per year for two years
Based Incentive
Performance-
Vermont All <2.2 kW $0.30 20 years 50 MW (program full)
Based Incentive
Modules/inverter
Performance-
manufactured out of $0.15 Expires 6/30/2020 $5000 per installation per year
Based Incentive
state
Washington

Inverter manfuactured
$0.18
Most Utilities in-state
Modules
$0.36
manufactured in-state
Modules/inverter
$0.54
manufactured in-state
Performance-
Wisconsin Madison Gas & Electric 1 kW - 10 kW $0.25 10 years 1 MW
Based Incentive
$CAD/kWh
<10 kW Rooftop
$0.80
10-250 kW Rooftop $0.71
Ontario

250-500 kW Rooftop $0.64

Ontario Power Authority 20 years Feed-in Tariff None
>500 kW Rooftop $0.54
<10 kW Ground
$0.64
Mounted
10 kW-10 MW Ground $0.44
24
 North American Feed-In Tariff Tracker
State/ Program Proposed/
Note Most Recent Alteration
Provinces Start Date Enancted

Avoided cost; alternative to California Solar Initiative 2/14/08 Enacted 1/1/2010 (public utilities with 75,000+ customers must offer FiT)
California

California’s three largest IOUs wil hold biannual auctions

8/26/2010 - California Public Utilities Commission (CPUC) has propsed
for developers; contracts are awareded to the lowest cost TBD Proposed
an incentive to drive midsize solar developments
viable projects and move up until MW cap is reached
Performance-based Incentive 1/19/10 Enacted 8/4/2010 (program has reached its cap)
Based on Cost of Generation 3/1/09 Enacted
Hawaii Florida

Program has reached its cap

“RECs deducted from monthly bills Enacted

9/25/09 Enacted

7/1/10 Enacted
Oregon

Fixed-price Incentive Program reached its cap within minutes of going live.
1/25/08 Enacted

60% of equipment manufactured in AE’s service area 2/1/10 Enacted

Texas

System must be 90% roof mounted 6/15/10 Enacted

Vermont Based on Cost of Alternative Generation 9/30/09 Enacted 6/4/10 - 65% system efficiency required for eligibility
Washington

3/2010 (increased eligibility for LLCs, cooperatives and mutural

8/31/06 Enacted
corporations)

Wisconsin Fixed-price Incentive 3/6/07 Enacted

Starting 1/1/2011, developers will be required to have at

Ontario

7/2/10 - microFiT was separated to ground mount and rooftop systems

least 60% of their building resources come from Ontario- Mar-06 Enacted
<10kW 8/13/2010 - exclusion of commercial aggregators
sourced goods and labor

25
 Research

2010 Global PV Demand Analysis and Forecast

Between 2000 and 2009, global PV demand grew at an average annual rate of 51
percent, rising from 170 MW to 7,059 MW. Despite this impressive rate of growth, the
past two years have witnessed a fundamental and difficult market shift for manufacturers.
Previously, burgeoning European feed-in tariff markets enabled global demand to exceed
available supply, driving up feedstock prices and attracting new entrants across the value
chain. But the combination of an ensuing rapid capacity build-out and the financial crisis
of 2008 and early 2009 shifted market power downstream into the hands of project
developers and financiers. Today, global manufacturing capacity greatly exceeds global
demand. With an estimated total of 16.1 GW of module manufacturing capacity online
by the end of 2010, the global PV market is no longer constrained by supply. early 2009
shifted market power downstream into the hands of project developers and financiers.
Today, global manufacturing capacity greatly exceeds global demand. With an estimated
total of 16.1 GW of module manufacturing capacity online by the end of 2010, the global
PV market is no longer constrained by supply.

In addition, 2010 will mark the beginning of a global PV market diffusion. Over the
past few years, PV demand has been characterized by a series of gold rushes in
which the majority of production flows into a single uncapped feed-in tariff market.

Purchase Today »
http://www.gtmresearch.com/report/2010-global-pv-demand-analysis-and-forecast

Subscribe now by visiting http://www.gtmresearch.com/report/pv-news

Or Return this slip with payment ($245 US, $295 International):

Name Company
Address
City State/Province Zip Country
Email Phone

Pay using your credit card: (Mail or Fax to +1 781 658 2557)

Credit Card Type (check one): AMEX Mastercard Visa

Account # Security Code Exp. Date

Name on card Company

Address

City State/Province Zip Country

26