David Savastano, Editor09.18.13
The solar market has grown slower than initially expected, with concerns over subsidies, overcapacity and profitability continuing to impede expansion. This has been the case throughout the mainstream (silicon-based) and thin film technologies.
In terms of market share, the most successful technology has been the cadmium telluride, or CdTe, thin film solar field. Interest in CdTe for solar dates back to the 1950s, but didn’t reach commercial success until the formation of First Solar, Tempe, AZ.
First Solar is the undisputed leader in the field, with sales of $3.4 billion for 2012, a 22% growth over 2011. Sales for 2013 remain lower, as the company is holding two system projects through construction and selling the projects after construction is completed.
First Solar has also achieved certain efficiency milestones, including a world record for CdTe cell efficiency at 18.7% and increased average module efficiency to 14.4%. The company also reduced average module manufacturing costs on its best lines to $0.68 per watt. All told, First Solar has 7 gigawatts of cumulative production. The company uses screen printed metallization for its manufacturing.
Interestingly, outside of First Solar, the CdTe market has been difficult for other companies. Most recently, Colorado-based Abound Solar went bankrupt in 2012.
General Electric (GE) decided to try its hand in the CdTe field, which certainly was a promising sign, by acquiring PrimeStar in 2011 and starting construction on a $600 million, 400 MW facility in Aurora, CO. However, GE put its construction on hold in July 2012, citing the need to further its R&D efforts to improve efficiencies.
In August 2013, GE decided the idea of moving into the CdTe field on its own was just not worth it, and sold its intellectual property (IP) to First Solar, in exchange for 1.75 million shares of First Solar stock, which GE will hold for at least three years.
The companies also entered into a technology collaboration agreement, with the goal of combining the two companies' technologies, GE Global Research and First Solar R&D research efforts and First Solar's manufacturing capabilities to accelerate the development of CdTe module performance and improve efficiency at manufacturing scale.
On the commercial side, GE will purchase and brand First Solar's solar modules for future global GE deployments, and the two companies formed a commercial relationship around solar inverter technology.
"We are creating an exciting synergy with this deal," said Jim Hughes, First Solar's CEO, in announcing the deal. "The addition of GE's PV thin film technology and R&D resources will advance our technology roadmap, while realizing cost reduction in our manufacturing process."
"To lead in today's solar industry, you must have the most competitive technology at the most competitive cost position," Anne McEntee, president and CEO of GE's renewable energy business, added in announcing the collaboration. "We're excited to partner with First Solar to accelerate innovation and bring our complementary technology and R&D to market faster through its manufacturing capabilities."
The combination of First Solar and GE’s CdTe business makes a lot of sense for the market. While GE never got its production off the ground, the company does have R&D expertise as well as sales and marketing reach, which will help First Solar enter new markets and provide GE with new solar materials to offer. It also avoids a possible battle over the CdTe market, which would have led to price and margin decreases. How the combination will ultimately work out remains to be seen, but it does seem to be a promising development.