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PHOTOVOLTAIC MARKETS AND APPLICATIONS
Robert Foster
Southwest Technology Development Institute
New Mexico State University
Solar energy is the energy force that sustains life on the
earth for all plants, animals, and people. The earth receives
this radiant energy from the sun in the form of electromagnetic
waves, which the sun continually emits into space. The earth
is essentially a huge solar energy collector receiving large
quantities of this energy which manifests itself in various forms,
such as direct sunlight used through photosynthesis by plants,
heated air masses causing wind, and evaporation of the oceans
resulting as rain which can form rivers. This solar energy can
be tapped directly as solar energy (thermal and photovoltaics),
and indirectly as wind, biomass, and hydroelectric energy.
Solar energy is a renewable resource that is inexhaustible and
is locally available. It is a clean energy source that allows
for local energy independence. The sun's power flow reaching
the earth is typically about 1,000 Watts per square meter (W/m2),
although availability varies with location and time of year.
Capturing solar energy typically requires equipment with a relatively
high initial capital cost. However, over the lifetime of the
solar equipment, these systems can prove to be cost-competitive,
as compared to conventional energy technologies. The key to successful
solar energy installation is to use quality components that have
long lifetimes and require minimal maintenance.
ELECTRICITY FROM SUNLIGHT (PHOTOVOLTAICS)
Electricity can be produced from sunlight through direct heating
of fluids to generate steam for large scale centralized electrical
generation (solar thermal electrical generation). Electricity
can alternatively be produced from sunlight through a process
called photovoltaics (PV), which can be applied, in either a
centralized or decentralized fashion.
"Photo" refers to light and "voltaic" to
voltage. The term describes a solid-state electronic cell that
produces direct current electrical energy from the radiant energy
of the sun, as represented in Figure 1. Solar cells are made
of semi-conducting material, most commonly silicon, coated with
special additives. When light strikes the cell, electrons are
knocked loose from the silicon atoms and flow in a built-in circuit,
producing electricity.
PV Terminology
Solar Cell: The PV cell is the component responsible
for converting light to electricity. Some materials (e.g., silicon
is the most common) produce a photovoltaic effect, where sunlight
frees electrons striking the silicon material. The freed electrons
cannot return to the positively charged sites ("holes")
without flowing through an external circuit, thus generating
current. Solar cells are designed to absorb as much light as
possible and are interconnected in series and parallel electrical
connections to produce desired voltages and currents.
PV Module: A PV module is composed of
interconnected solar cells that are encapsulated between a glass
cover and weatherproof backing. The modules are typically framed
in aluminum frames suitable for mounting.
PV Array: PV modules are connected in
series and parallel to form an array of modules, thus increasing
total available power output to the needed voltage and current
for a particular application.
Peak Watt (Wp): PV modules are rated
by their total power output, or peak Watts. A peak Watt is the
amount of power output a PV module produces at Standard Test
Conditions (STC) of a module operating temperature of 25°C
in full noontime sunshine (irradiance) of 1,000 Watts per square
meter. Keep in mind that modules often operate much hotter than
25°C in all but cold climates, reducing operating voltage
and power by about 0.5% for every 1°C hotter, thus a 100W
module operating at 45°C (20° hotter than STC yielding
a 10% power drop) would actually produce about 90 Watts.
A thin silicon cell, four inches across, can produce more
than one watt of direct current (DC) electrical power in full
sun. Individual solar cells can be connected in series and parallel
to obtain desired voltages and currents. These groups of cells
are packaged into standard modules that protect the cells from
the environment while providing useful voltages and currents.
PV modules are extremely reliable since they are solid state
and there are no moving parts. Silicon PV cells manufactured
today can provide over thirty years of useful service life. Some
manufacturers provide warranties of up to 25 years on their PV
product (at 80 percent of original power rating). A 50 Wp PV
module in direct sunlight operating at 25°C will generate
50 Watts per hour (referred to as a Watt-hour[Wh]). This
same module will produce less power at higher temperatures; at
55°C this same module can only produce about 42.5 W. Modules
can be connected together in series and/or parallel in an array
to provide required voltages and currents for a particular application.
PV systems are made up of a variety of components, which aside
from the modules, may include conductors, fuses, disconnects,
controls, batteries, trackers, and inverters. Components will
vary somewhat depending on the application. PV systems are modular
by nature, thus systems can be readily expanded and components
easily repaired or replaced if needed. PV systems are cost effective
for many remote power applications, as well as for small stand-alone
power applications in proximity to the existing electric grid.
PV is a relatively new and unknown technology, which offers
a new vision for consumers and business as to how power can be
provided. PV technology is already proving to be a force for
social change in rural areas in less developed countries. The
unique aspect of PV is that it is a "radical" or "disruptive"
type of technology as compared to conventional power generation
technologies. PV is a technology that does not build from the
old technology base, but rather replaces that base from the bottom
up. PV allows people the opportunity to ignore traditional electrical
power supply structures and meet their own power needs locally.
In rural regions of the world today, where there are no power
companies offering electricity, PV is often the technology of
choice.
The best performing renewable energy electrification systems
are those that meet the expectations of the users. It is important
to satisfy the basic needs of the user in order to ensure acceptance
of renewable energy systems. Ownership and subsequent accountability
is the key to system sustainability for PV.
One 50 Wp PV module is enough to power four or five small
fluorescent bulbs, a radio, and a 15-inch black-and-white television
set for up to 5 hours a day. Obviously this is only a modest
amount of energy, however this represents an important quality
of life improvement for many rural people without electricity.
A small PV solar home system can cost as little as $550 to 650.
This represents a significant monetary investment for a rural
campesino in Mexico and several months' worth of income. The
need for financing and innovative financing instruments that
can assist rural people to obtain better services through the
private marketplace is obvious.
GLOBAL PHOTOVOLTAIC MARKETS
The fast growing world market for PV greatly reflects the
growing rural electrification demand of less developed countries
around the world. The global PV market has grown at an average
rate of 16 percent per year over the decade with village power
driving demand. Table 2 shows the total worldwide PV production
in 1980 was only 6.5 megawatts (MW) and by 1997 this had increased
to 126.7 MW.
Table 2. Worldwide PV production
1980 1986
1989 1991 1993
1996 1997
TOTAL (MW) 6.5 26.0
40.2 55.4
60.1 88.6
126.7
Source: O'Meara, 1998.
U.S. module production is leading world growth as well. In
1993 the U.S. produced 21 MW of PV, of which 14.8 MW was exported.
By 1997, global demand led to a record breaking PV production
year with a 42 percent leap in worldwide production. The U.S.
produced 46.4 MW with $175 million in sales and exported 33.8
MW (73 percent of production) overseas (EIA, 1998).
There are over 500,000 homes using PV today in villages around
the world for electricity (Flavin and O'Meara, 1998b). In Kenya,
more rural households receive electricity from PV than from the
conventional power grid (Kozloff and Shobowale, 1994). The single
largest market sector for PV is village power at about 45 percent
of worldwide sales. This is mostly comprised of small home lighting
systems and water pumping. Remote industrial applications such
as communications are the second largest market segment.
PHOTOVOLTAIC COSTS
For many applications, especially remote site and small power
applications, PV power is the most cost-effective option available,
not to mention its environmental benefits. New PV modules generally
retail for about $5 per peak watt, depending on quantities purchased.
Batteries, inverters, and other balance of system components
can raise the overall price of a PV system to over $10 - $15
per installed Watt. PV modules on the market today are guaranteed
by manufacturer's from 10 to 20 years, while many of these should
provide over 30 years of useful life. It is important when designing
PV systems to be realistic and flexible, and not to overdesign
the system or overestimate energy requirements (e.g., overestimating
water-pumping requirements) so as not to have to spend more money
than needed. PV conversion efficiencies and manufacturing processes
will continue to improve, causing prices to gradually decrease.
PV conversion efficiencies have increased with commercially available
modules that are from 12 to 17 percent efficient, and research
laboratory cells demonstrate efficiencies above 34 percent. A
well-designed PV system will operate unattended and requires
minimum periodic maintenance, which can result in significant
labor savings. PV modules on the market today are guaranteed
by the manufacturer from 10 to 25 years and should last well
over 30 years. PV conversion efficiencies and manufacturing processes
will continue to improve, causing prices to gradually decrease,
however no dramatic overnight price breakthroughs are expected.
COMMON PHOTOVOLTAIC APPLICATIONS
PV is best suited for remote site applications that have small
to moderate power requirements, or small power consuming applications
even where the grid is in existence. A few power companies are
also promoting limited grid-connected PV systems, but the large
market for this technology is for stand-alone (off grid) applications.
Some common PV applications are as follows:
Water Pumping
Pumping water is one of the most competitive arenas for PV
power since it is simple, reliable, and requires almost no maintenance.
Agricultural watering needs are usually greatest during sunnier
periods when more water can be pumped with a solar system. PV
powered pumping systems are excellent for small to medium scale
pumping needs (e.g., livestock tanks) and rarely exceed applications
requiring more than a 2 hp motor. There are thousands of agricultural
PV water pumping systems in the field today throughout Texas.
PV pumping systems main advantages are that no fuel is required
and little maintenance is needed.
PV powered water pumping system is similar to any other pumping
system, only the power source is solar energy; PV pumping systems
have, as a minimum, a PV array, a motor, and a pump. PV water
pumping arrays are fixed mounted or sometimes placed on passive
trackers (which use no motors) to increase pumping time and volume.
AC and DC motors with centrifugal or displacement pumps are used
with PV pumping systems. The most inexpensive PV pumpers cost
less than $1,500, while the large systems can run over $20,000.
Most PV water pumpers rarely exceed 2 horsepower in size. Well
installed quality PV water pumping systems can provide over 20
years of reliable and continuous service.
The reason users like to use PV water pumping systems can be
seen in example survey results obtained from Mexico for the SNL
water pumping program (22 end-users surveyed) provided in Figure
7 (Foster, 1998). The increased leisure time, less site visits,
and considerably less operation and maintenance.

Figure 7. Perceived end-user socio-economic benefits from
photovoltaic water pumping systems use for ranchers.
Gate Openers
Commercially available PV powered electric gate openers use
wireless remote controls that start a motorized actuator that
releases a gate latch, opens the gate, and closes the gate behind
the vehicle. Gates are designed to stop if resistance is met
as a safety mechanism. Units are available that can be used on
gates up to 16 feet wide and weighing up to 250 pounds. Batteries
are charged by small PV modules of only a few watts. Digital
keypads are available to allow access with an entry code for
persons without a transmitter. Solar powered gate-opening assemblies
with a PV module and transmitter sell for about $700.
Electric Fences
PV power can be used to electrify fences for livestock and
animals. Commercially available packaged units have maintenance
free 6 or 12 Volt sealed gel cell batteries (never need to add
water) for day and night operation. These units deliver safe
(non-burning) power spikes (shocks) typically in the 8,000 to
12,000 Volt range. Commercial units are UL rated and can effectively
electrify about 25 to 30 miles of fencing. Commercially packaged
units are available from about $150 to $300, depending on voltage
and other features.
Water Tank De-Icers
For the north plains of Texas in the winter, PV power can
be used to melt ice for livestock tanks, which frees a rancher
from going out to the tank with an ax to break the surface ice
so the cows can drink the water. The PV module provides power
to a small compressor on the tank bottom that generates air bubbles
underwater, which rise to the surface of the tank. This movement
of the water with the air bubbles melts the tank's surface ice.
Commercially available units are recommended for tanks 10 feet
in diameter or greater, and can also be used with ponds. Performance
is best for tanks that are sheltered, bermed or insulated. Installation
is not recommended for small, unsheltered tanks in extremely
cold and windy sites. Approximate cost for a complete owner-installed
system, including a PV module, compressor, and mounting pole
is about $450 (Foster, 1994).
Commercial Lighting
PV powered lighting systems are reliable and a low cost alternative
widely used throughout the United States. Security, billboard
sign, area, and outdoor lighting are all viable applications
for PV. It's often cheaper to put in a PV lighting system as
opposed to installing a grid lighting system that requires a
new transformer, trenching across parking lots, etc. Most stand-alone
PV lighting systems operate at 12 or 24 volts DC. Efficient fluorescent
or sodium lamps are recommended for their high efficiency of
lumens per watt. Batteries are required for PV lighting systems.
Deep cycle batteries specifically designed for PV applications
should be used for energy storage for lighting systems. Batteries
should be located in protective enclosures, and manufacturer's
installation and maintenance instructions should be followed.
Batteries should be regulated with a quality charge controller.
Lighting system prices vary depending on the size; average systems
cost from $600 to $1,500.
Residential Power
Over 500,000 homes worldwide use PV power as their only source
of electricity. In Texas, a residence located more than a mile
from the electric grid can install a PV system more inexpensively
than extending the electric grid. A Texas residence opting to
go solar requires about a 2 kW PV array to meet its energy needs,
at a cost of about $15,000. The first rule with PV is always
energy efficiency. A PV system can provide enough power for an
energy efficient refrigerator, lights, television, stereo, and
other common household appliances.
A great number of PV installations for homes have taken place
in Mexico. The experience of PV electrification varies widely
across Mexico and is demonstrative of the potential pitfalls
of haphazard installations. Over 40,000 PV home lighting systems
have been installed in Mexico, mostly through government programs
(Foster, 1998). However, nearly half of these systems are not
functioning today, mostly due to poor balance of systems hardware
(i.e., the PV modules work fine), where improper batteries and
poor quality charge controllers are used. It is important for
any PV user to use quality equipment and install PV systems in
accordance with local electric codes. This greatly reduces the
potential for future problems.
Evaporative Cooling
PV powered packaged evaporative cooling units are commercially
available and take advantage of the natural relation that when
maximum cooling is required is when maximum solar energy is available.
These units are most appropriate for comfort cooling in the dry
climate of West Texas where performance is best. Direct evaporative
coolers save 70% of the energy over refrigerated units. Battery
storage is obviously required if cooler operation is desired
at night. Array size would vary with the power requirements of
the cooler motor. A linear current booster (LCB) is useful between
the PV modules and the cooler's DC motor if the cooler is coupled
directly to the PV array. Packaged PV evaporative cooling systems
for residences generally run from $500 to $1,500, depending on
size.
Telecommunications
This was one of the early important markets for PV technologies,
and continues to be an important market. Isolated mountaintops
and other rural areas are ideal for stand-alone PV systems where
maintenance and power accessibility makes PV the ideal technology.
These are often large systems, sometimes placed in hybrid applications
with propane or other type of generators.
Consumer Electronics
Consumer electronics that have low power requirements are
one of the most common uses for PV technologies today. Solar
powered watches, calculators, and cameras are all everyday applications
for PV technologies. Typically, these applications use amorphous
PV technologies that work well even in artificial light environments
such as offices and classrooms.
Electric Utility Applications
A potential future growth area for photovoltaics is the utility
market, which currently amounts to less than 10% of U.S. PV installations.
While PV today is not very competitive in grid-tied applications,
a number of utilities across the U.S. are evaluating PV for off-grid
and grid-tied applications. The White House and Department of
Energy are promoting the "Million Solar Roofs Initiative,"
whose goal is to put solar energy on these many roofs (both solar
thermal and PV systems) by the year 2010. However, major power
policy reforms and tax incentives are needed if this goal is
going to be effectively realized.
Utilities have numerous uses for small power sources, often at
remote sites that are difficult to power conventionally, such
as lighting for transmission towers, water pumping, cathodic
protection for structures, sectionalizing switches, monitoring
systems and microwave communication links. While this utility
market is not large these applications are cost-effective today.
The Photovoltaics for Utility Scale Applications (PVUSA) project
initiated in 1986 is a joint effort between PG&E, DOE and
other utilities across the country including the City of Austin
Electric Utility. This project focuses on evaluation of PV within
the U.S. utility sector. The City of Austin Electric Department
is a PVUSA host site with an installed a 20kW experimental array
in 1992. The City of Austin Electric Utility has also built a
300kW PV array by Decker Lake, as well as Several U.S. utilities
are investigating using PV systems as a 2.7kW PV system located
on a youth hostel in Austin to evaluate PV as a future demand-side
management tool.
Another Texas utility, Central and Southwest Services, has
also built a pioneering renewable energy demonstration park near
Fort Davis. They have installed over 300 kW of different PV technologies
connected to the electric grid. Both the Austin Utility and Central
and Southwest are members of the Utility Photovoltaic Group (UPVG)
which is comprised of numerous utilities and trade associations
across the U.S.
CONCLUSIONS
The future is bright for continued PV technology dissemination
in the Southwest U.S. and around the world. PV technology fills
a significant need in supplying electricity, creating local jobs
and promoting economic development in rural areas, while also
having the positive benefits of avoiding the external environmental
costs associated with traditional electrical generation technologies.
People who choose to pursue a renewable and sustainable energy
future now, are the ones showing the way for the future.
REFERENCES
EIA, Energy Information Agency, "Solar Energy,"
ftp://ftp.eia.doe.gov/pub/solar.renewables/solar.txt,
U.S. Department of Energy, Washington, D.C., October, 1998.
Flavin, Christopher and Molly O'Meara, Karl Böer (editor),
"Financing Solar Home Systems in Developing Countries: Examples
of New Market Strategies," Advances in Solar Energy, Volume
12, American Solar Energy Society, Boulder, Colorado, 1998a.
Flavin, Christopher and Molly O'Meara, "Solar Power Markets
Boom," World Watch, Vol. 11, No. 5, Washington, D. C., September/October,
1998b.
Foster, Robert, Photovoltaic Market Development and Barriers
in Mexico, MBA Thesis, Graduate School of Business, New Mexico
State University, Las Cruces, New Mexico, December, 1998, 206
pp.
Foster, R. E., "Photovoltaic Energy for Agriculture,"
Energy Conservation and Management Division; Energy, Minerals
and Natural Resources Department, Santa Fe, New Mexico, June,
1994, 6 pp.
Kozloff, Keith and Olatokumbo Shobowale, "Rethinking
Development Assistance for Renewable Electricity," World
Resources Institute, Washington, D.C., November, 1994.
O'Meara, Molly, "Solar Cells Shipments Hit New High,"
Vital Signs, 1998, WorldWatch Institute, Washington, D.C., 1998.
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