World Sales Of Solar Cells Jump 32 Percent
World production of solar cellswhich convert sunlight directly into electricitysoared to 742 megawatts (MW) in 2003, a jump of 32 percent in just one year according to the Earth Policy Institute.
With solar cell production growing by 27 percent annually over the past five years, cumulative world production now stands at 3,145 MW, enough to meet the electricity needs of more than a million homes.
The growth is driven to some degree by improvements in materials and technology, but primarily by market introduction programs and government incentives. Japanese PV productionwhich accounts for 49 percent of the world totalhas benefited from a variety of government incentive programs. The 70,000 Roofs Program established in 1994 initially covered 50 percent of PV installation costs.
As the cost of solar cells fell with increased production, however, the subsidy was reduced to about 10 percent. By 2002, the number of residential systems installed in Japan had reached 144,000.
Other useful government incentives include a budget allocation of 20.5 billion yen ($186 million) in 2003for research and development, demonstration programs, and market incentivesand net-metering (feeding excess energy back into the power grid).
European production has also boomed. With a growth of 41 percent in 2003, PV production in Europe reached 190 MW.
Despite the lack of a unified EU approach toward renewable energy, individual member states’ policies have enhanced Europe’s position in the world market.
In contrast, PV production in the United States decreased by 14 percent in 2003, dropping to 104 MW. This was due to lowered production by BP Solar, the repurchasing of solar cells by Shell Solar, and the bankruptcy of Astropowerthe second largest producer of solar cells in the United States.
Furthermore, the Million Solar Roof Initiativea national program designed to support states and local communities as they develop solar energy technologiesthat was launched in 1997 by President Clinton lacks a dedicated budget, which has stymied progress.
As a result, the 89 regional partnerships in this initiative reported that by the end of 2003 there were only 229,000 residential solar roofs throughout the country.
State policies and programs, including tax exemptions, loan programs and grants, and renewable content requirements, have been more effective.
California’s Environmental Protection Agency recently proposed a Million Solar Homes Initiative that would require half of the new homes in the state to run on solar power within 10 years, with a goal of a total of 1 million solar homes within 13 years.