Sun Power to the Rescue
By Jenny Bieksha, Bishop & Associates Inc.

While the solar industry had a record year in 2008, even solar companies have not been immune to the current global recession. Reductions in consumer and commercial spending have slowed new solar installations and have weakened the forecasts for 2009. Decreased expectations, combined with the overall economic decline, are driving solar companies to evaluate other strategic options for immediate and long-term growth. Larger, well-financed solar companies will acquire smaller firms to move into additional geographies and provide new and expanded services. Additionally, many solar companies are establishing economies of scale by integrating up and down the solar supply chain. This is particularly apparent among two of the industry's sectors: system installers and cell/module production companies.

Worldwide photovoltaic (PV) system installations are forecast to decline to 3.5 gigawatts (GW) in 2009. Industry analysts believe the impact will continue into 2010, limiting global revenue growth to 29.2 percent for the year, with full recovery in 2011. Revenue growth of 57.8 percent is expected in 2011, followed by similar levels through 2013, as both demand and supply become more balanced.

Global Market Update
World solar PV market installations reached a record high of 5.95 GW in 2008, representing growth of 110 percent over the previous year. Europe accounted for 82 percent of world demand in 2008. Spain's 285 percent growth pushed Germany into second place in the market ranking, while the U.S. advanced to number three. Rapid growth in Korea allowed it to become the fourth largest market, closely followed by Italy and Japan.

The U.S. overtook Japan in 2008, becoming the third largest installer of PV solar energy worldwide; but it continues to lag behind Europe. China and Germany continue to be the largest markets for solar water heaters. Though no new domestic concentrated solar power (CSP) plants went online in 2008, the U.S. continues to host the majority of the world’s CSP capacity.

Q-Cells of Germany became the leading solar PV producer worldwide in 2007, and maintained that lead with 570 MW of cells produced in 2008. First Solar doubled production in 2008, to 500 MW, with expanded manufacturing in Germany and new manufacturing in Malaysia. Suntech of China tripled cell production from 160 MW in 2006 to 500 MW in 2008, to tie for second place with First Solar. Former world leader Sharp of Japan fell to fourth place, with 470 MW of cells produced in 2008.

The CSP industry saw many new entrants and new manufacturing facilities in 2008. Active project developers grew to include Ausra, Bright Source Energy, eSolar, FPL Energy, Infinia, Sopergy, and Stirling Energy Systems in the United States; Abengoa Solar, Acciona, Iberdrola Renovables, and Sener in Spain; and Solar Millennium in Germany.


Solar Application and Technology Trends
Solar PV markets showed three clear trends in 2008. The first was the growing attention to building-integrated PV (BIPV), which is a small but fast-growing segment of some markets, with more than 25 MW installed in Europe. Second, thin film solar PV technologies became a larger share of total installations. And third, utility-scale solar PV power plants (defined as larger than 200 kW) emerged in large numbers in 2008.

Building-integrated photovoltaics (BIPV) are increasingly being incorporated into new domestic and industrial buildings as a principal or secondary source of electrical power, and are one of the fastest growing segments of the photovoltaic industry. Typically, an array is incorporated into the roof or walls of a building. Roof tiles with integrated PV cells can now be purchased.

Thin film solar PV The high cost of crystalline silicon wafers (40-50 percent of the cost of a finished module) has led the industry to look at cheaper materials to make solar cells. Thin film technologies are complex and have taken at least 20 years to move from the stage of promising research, to the first manufacturing plants producing early product. Although they are less efficient (production modules range from 5 to 8 percent), thin films are potentially cheaper than c-Si because of their lower materials costs and larger substrate size. The emerging thin film technologies are making significant in-roads to grid connect markets and may offer design options for BIPV, but crystalline technologies still dominate the market.

Bifacial PV modules are now being delivered to the market. As there is a minimal price difference between bifacial and single-sided modules, bifacial modules are increasingly being used, as they can produce 5-20 percent more energy. The back face generates electricity from ambient light reflected off surrounding surfaces and combines with power from the front face of the panel. As temperatures rise, double solar panels produce more electricity than conventional solar panels at the same temperature, due to their low temperature coefficient.

Concentrating Solar Power (CSP) There are two types of technologies: Concentrating Solar Thermal (CST) involves concentrating the sun’s energy on a thermal conductor and then using that heat to move an engine or turbine. These usually take the form of a large power plant and can concentrate using mirrors in a line or around a point. Concentrating Photovoltaic (CPV) technologies concentrate the sun’s energy directly onto high-efficiency PV materials to directly create electricity. These technologies use both mirrors and lenses and can be deployed in configurations that range from large systems to mid-sized systems, with some technologies operating at a small modular scale similar to traditional PV modules.

What gives CSP an edge over PV solar is that heat energy, not electricity, is harvested from the sun. It’s much easier and more efficient to store the sun’s energy as heat rather than electricity. Current CSP installations with storage capacity can retain heat energy collected during the day in storage tanks for about six hours. The thermal storage tanks function as solar batteries.

Although PV is projected to have a lower cost than CSP in the medium to long term, CSP will play a role in utility scale installations due to storage capabilities. PV for distributed applications, and some fixed or single-axis tracking systems for central systems, will remain economically competitive. Unless CSP technologies can match those of PV, the distributed market will be tough for CSP technology to penetrate.

Microinverters
Inverters play a central role in the workings of a solar energy system. They convert the direct current (DC) produced by the solar panels into alternating current (AC) for their owners use or for feeding the grid. A growing number of solar companies are offering microinverters that are attached to each panel or a small rack of panels. SolarBridge is working with panel makers to sell panels that come with built-in inverters, which would simplify the installation process and reduce costs compared to installing inverters separately on the job site. Enphase Energy has developed a miniature version of the inverter that is bolted onto each solar panel. It is selling its products through solar equipment installers and distributors.

Solar Supply Chain: A tough year ahead for new players
Until last year, PV industry development conditions all over the world were ideal. Supply could not satisfy demand. This led to an influx of many new players and investments in new production facilities to offer new technologies (mainly thin film), or in turnkey factories. The existing players developed aggressive expansion strategies to build up their production capacity, while covering future supply requirements in the value chain. This race to invest and increase production capacity turned the tables in the market with production now outstripping demand. The solar supply chain is undergoing refinement. In response to the weakened economy, two distinct approaches are being made: increasing vertical integration, and an opposing strategy, outsourcing products and services to contract manufacturers.

Vertical integration is seen by some as a critical competitive advantage in the international solar market. The ability to own both your upstream suppliers and your downstream buyers enables companies to increase its margins, lower overall production costs, control the quality of production, and enhance its overall competitiveness in the market. Very few solar power companies today can make the claim of being a fully integrated manufacturer. Most rely on outside sources of supply for wafers, cells, laminates, or solar panels. A fully integrated company, such as SolarWorld and Trina Solar, has full control over the manufacturing of their product, from beginning to end.

In order to reduce operational costs during the economic downturn, some companies are opting to close solar equipment plants and contract with manufacturers to make cells and solar panels. They are working with suppliers who can provide high-volume and high-quality module assembly from regional manufacturing centers. Outsourcing manufacturing would allow solar technology companies to focus on research and development, and rather than raising millions of dollars to build a factory.

There are four major sectors that drive the solar supply chain—raw material (wafer/ingot) producers, cell/module producers, vertically-integrated companies, and system installers. At the upper end of the chain, silicon production requires substantial know-how and investment, as does the production of wafers. At the level of cell and module producers, there are many more players in the market. The installers are often small, locally based businesses, at the end of the supply chain. Not obvious in the figure below is the emergence of master distributors of solar energy equipment and systems, providing turnkey services to solar contractors and installers, including design of solar solutions, product manufacturing, sales, and training services.

In the most widely used crystalline silicon-based solar manufacturing process, feedstock is melted in high-temperature furnaces, then formed into ingots through a crystallization process. Ingots are cut and shaped, then sliced into wafers using high-precision cutting techniques. Wafers are manufactured into solar cells through a multiple-step manufacturing process that entails etching, doping, coating, and applying electrical contacts. Solar cells are then interconnected and packaged to form solar modules, which together with system components, such as junction boxes, inverters, and batteries, are distributed to installers, systems integrators, service providers, or directly to end-users, for installation in on-grid or off-grid systems.

Connectivity in Solar Energy Applications
In order to be competitive in the solar market today, there is a growing need for connector suppliers to offer more than a highly-reliable and cost-effective solution. Those with a broad portfolio may offer connectivity products and solutions for all segments of the solar power system. For example, providing panel manufacturers with connectivity products for both thin film and crystalline silicon technologies, junction boxes, inverters, combiners, and battery chargers. The ability to provide plug-and-play solutions, while providing ease of installation and maintenance, is important, regardless of the solar application being considered.

So where are the connector supplier opportunities in solar applications today? The following list is certainly not all inclusive. Product and technology improvements will be on the fast track to keep pace with market growth and anticipated price reductions over the next few years. 

·       PV Manufacturing Equipment

·       Mounting Structures

·       Components for Grid-Integrated PV Systems

·       Balance of System Components

-           Control equipment (trackers, inverters, microinverters, battery charge controllers, etc.)

-           PV array to field wiring

-           PV panel to array wiring

-           Disconnects

-           Data acquisition system and sensors            

·       CSP Materials and Components

-           Electronics

-           Gears and motors

Connector Offerings in Solar Energy
Multi-Contact: Being one of the pioneers in providing connector systems for the photovoltaic industry, Multi-Contact looks back on more than 10 years experience in this sector. A series of high-quality connector systems for PV modules of various kinds is offered with the MC3 and MC4. The SolarLine family of connectors and junction boxes delivers a flexible system solution for time-saving, dependable series cabling of solar panels, which are integrated into buildings or stand-alone arrays. The Multi-Contact plug connector system allows for the PV arrays to be pre-assembled and pre-wired in the shop or on site, providing the benefit of quick installation by skilled construction workers; this significantly reduces installation costs of the solar energy system. The cable couplers are fully touch-protected and designed for high-voltage and high current-carrying capacity. They are equipped with a Multilam contact band and meet the IP67 protection requirement in the photovoltaic industry.

The Tyco Electronics SolarLok Interconnection System delivers a flexible solution for easy and reliable interconnections from photovoltaic modules to the DC/AC converter. The entire system concept is based on cost-effective and reliable processing of individual interconnection system components. This significantly reduces installation costs of the solar energy system. The junction box concept is based on a flexible, open system structure, which allows serial as well as parallel interconnection via direct wire connect or separable connectors. The male and female cable connector was designed for high-voltage and high current-carrying capacity, in addition to the well established IP 67 sealing requirement in the photovoltaic industry. As an added benefit, the junction box can be provided pre-configured with diodes, jumpers, plug connectors, and solar cable pigtails as needed.

HUBER+SUHNER develops and produces customized solar system solutions. From the module to the inverter, high-performance connectivity solutions for the DC side of photovoltaic applications are offered. The RADOX® SOLAR HA3 junction box family is designed for high-performance modules. The module is protected from the occurring temperature increase in reverse mode. The thermal separation between the junction box and the module ensures high performance over the whole lifetime of the system (patent pending). The junction box can easily be connected to the back of the module, either manually or in a fully automated process. The ribbons are soldered to the contacts and sealed. To ensure high efficiency of the complete system, components with low electrical resistance are used to minimize power losses. All materials are environment friendly and comply with the RoHS regulation.


Weidmüller Every solar array unit features a PLC controller so you can monitor the power generated and manage the intelligent tracking system, which ensures the ideal angle to receive sunlight. This controller is linked to the photovoltaic system’s main control unit via the switch module. Since solar arrays are installed outdoors, thru-panel connectors need to be designed for optimum performance against the elements. They also need to be flexible, as the types of connections into and out of a panel or enclosure can vary between RJ45 and fiber optic. Weidmüller has developed the STEADYTEC® line of industrial Ethernet connectors. The entire line is UV resistant, rated to IP67 for ingress so the connectors are water resistant, and shock and vibration tested and rated. The entire line is interchangeable and modular.

Wieland products enable completely interconnecting photovoltaic systems, using the pluggable connectivity technology of gesis® SOLAR, coupled with an extensive range of standard termination products. From the PV panel to the array to the combiner boxes, from the inverters through the distribution panels and directly into the electrical grid, the gesis ®SOLAR system always guarantees a high degree of efficiency. The installation can be implemented quickly and without errors—even under adverse weather conditions. This is possible using pre-assembled connectors and components providing IP65 and IP68 protection. Individual components, such as inverters, combiner boxes, or distribution boxes, can be disconnected during servicing with a flick of the wrist. Wieland not only supplies components, but also supports customized solutions.



Molex recently launched a new Solar Junction Box at the InterSolar 2009 show in Munich, Germany. The Solar Junction Box and cable assemblies are for sale to global manufacturers of mono- and poly-crystalline photovoltaic (PV) solar modules, and will be certified to TÜV, UL, and 2008 NEC. The junction box contains the diodes and cable connections in the “removable” top cover of the housing, thereby facilitating easy field repair or replacement in the event of damage or wear. The box can be attached to the PV solar panel using robotic pick-and-place machines, thereby reducing the need for manual assembly and associated fabrication expense. The Molex concept also has an exclusively designed spring terminal to connect the base unit directly to the ribbon conductors, without the need for retention clamps or clips. Optional Solder Charge Technology™, the Molex-patented PCB termination method that uses standard SMT reflow-soldering process, can utilize high-speed assembly and can eliminate the need for manual hand soldering of the ribbon conductors.

Jenny Bieksha
Director, Renewable Energy and Test, Measurement, and Instrumentation
Jenny Bieksha joined Bishop & Associates in 2008 as its market segment director for the renewable energy, and the test, measurement, and instrumentation markets. She is currently a management consultant specializing in strategic business planning, with an emphasis on the development of program, market, and product plans. Bieksha has more than 20 years of experience in the electronics industry, with a background in market management, business development, channel sales, product management, and operations for ITT Corporation, Delphi Connection Systems, and Hughes Aircraft Company.

Bieksha has a bachelor of science degree in marketing from the University of Wyoming, and has since received her certificate as a project management professional.