New PV Manufacturing Facility Slated for Construction in Japan

The latest in a string of of solar panel producers to make recent headlines, the Kyoto-based Kyocera Corporation announced plans last month to begin construction on a new plant in Shiga Prefecture early in 2009. The new facility will allow Kyocera to more than double its output to 650 MW by its completion in Spring 2012. Given the current demand for photovoltaics, this welcome development comes on the heels of Sanyo’s recent announcement of its new 70 MW manufacturing facility in Oregon and expansion plans at existing facilities that will boost its overall output from 260 MW to over 600 MW by the end of 2010.

Together, these announcements signal a promising new direction for the solar industry; by creating the necessary infrastructure to increase output, these plants will help make solar panels more affordable. This increase in the available supply of photovoltaics is part of a trend that should bring the cost of solar energy on par with cheaper fossil fuels, and it could happen more quickly than anticipated.

This isn’t just a matter of making more, however; the price of raw materials must also come down. A recent report (”Immature PV Supply Chain to Result in Major Polysilicon Price Volatility” - see abstract) issued by iSuppli, a firm that specializes in electronics industry analysis, predicts a “precipitous plunge” in polysilicon prices in 2009 - from as much as $500/kg last year to $200/kg. Though a less efficient conductor than monocrystalline silicon, polysilicon is cheaper and easier to manufacture, which makes it ideal for most solar panels currently on the market. Despite an expected 34% increase in demand, the supply of polysilicon is expected to double over the course of the next year, thus taking some of the strain off the market forces that continue to buoy panel prices. Nearly 90% of the polysilicon supply in 2007 was supplied by only seven companies. By 2009, more than sixty firms will have their hats in the ring. This is nothing but good news for energy-conscious consumers. The report also forecasts an increase in the production capacity of polysilicon-based panels to 17.8 GW by 2010 - nearly triple 2007’s output of 6.2 GW.

So waiting for affordable solar may not require the saintly patience that many imagine; if the growth of the industry is any indication, the alacrity of its arrival may catch us all by welcome surprise.

Sources: “Sanyo ups solar module production capacity in Mexico”, EE Times Asia; “Kyocera to build new solar cell manufacturing plant”, Emerging Energy News; “Kyocera Announces Construction of New Solar Cell Manufacturing Plant”, BusinessWire; “Polysilicon pricing to begin ‘precipitous plunge’ in 2009, says iSuppli report”, PV-tech.org, “SEMI Bolsters Photovoltaic Information Offerings for Members”, Semiconductor International; “Crystalline silicon”, Wikipedia.


Posted on Friday, December 19th, 2008 at 2:59 pm | Tagged in Solar One | posted by Bill

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