Revolution happening in solar energy industry

The solar energy technology can be broadly classified as follows:

• Solar Photovoltaic
  • Crystalline
    • Monocrystalline
    • Polycrystalline
  • Thin-film
    • CdTe (Cadmium Telluride)
    • CIGS (Copper Indium Gallium Selenium)/CIS (Copper Indium Selenium)
    • CIS (Copper Indium Diselenide)
    • Amorphous Silicon (a-Si)
  • Concentrating Photovoltaic
• Solar Thermal
  • Distributed Solar Thermal
    • Flat-plate Collectors
    • Evacuated Heat-pipe Tubes
  • Centralised Solar Thermal
    • Concentrating Solar Thermal
      • Parabolic Trough Collectors
      • Dish/Engine Systems
      • Power Towers
      • Hybrid Systems / Integrated Solar Combined Cycle
      • Linear Fresnel

Solar energy is utilized in the form of both solar PV (photovoltaic) and solar thermal

Solar Photovoltaic (PV)

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Using solar photovoltaic, sunlight is converted into electricity. Solar photovoltaic uses photovoltaic (PV) cells usually in the form of panels, also called solar panels. Solar PV can be used either as stand-alone systems that are off the grid or as large systems that are connected to the electricity grid. Typical system size varies from 50 watt (W) to 1 kilowatt (kW) for stand-alone systems with battery storage and small water pumping systems; from 500 W to 5 kW for roof-top grid connected systems and larger water pumping systems; and from 10 kW to megawatts for grid-connected ground-based systems and larger building integrated systems.

Solar Thermal

Solar thermal is a rather straightforward application of solar energy. In this, solar energy is used to either directly provide heat energy (as in the case of solar water heaters), or the heat is used to heat liquids into steam, which is then used to drive turbines to produce electricity.

The principles of concentrating direct sunlight into useful thermal energy are very basic. The basic engineering technologies for converting thermal energy into electricity have been commercially demonstrated for over two decades.

Solar PV is more prevalent than solar thermal. Solar PV relatively contributes much more to electricity generation than solar thermal. The contribution of solar PV to world electricity generation is about 0.25% (with an installed capacity of about 15 GW, 2008 data). The contribution to solar CSP (concentrated solar power), the form of solar thermal used for electricity generation, is less than 0.01% (with an installed capacity of only about 0.5 GW worldwide, 2008 data).

Share of Various Solar PV Technologies (Global)

Type	Share of total solar PV market	Growth rate % (2007-2010)
Crystalline	87.4	14.7
Crystalline – Mono	42.2
Crystalline – Poly	45.2
Thin film	12.6	37.8
Thin film – a-Si	5.2
Thin film – CdTe	4.7
Thin film – CIS/CIGS	0.5
Other thin film	2.2
Concentrated PV	Negligible (estimated to be about 0.1%)

Solar Global PV power capacity is estimated to be more than double for the period 2007-12, with a CAGR of about 19%. Solar thermal industry plays a significant role as well, in domestic and industrial heating and drying applications

The solar industry (both PV and thermal) has huge market potential and much work needs to be done to turn potential into reality. One crucial step is to bring a far broader range of actors into the sector, particularly in the investment, finance, marketing and retail areas. With such tremendous growth, a wide range of entrepreneurs and businesses can benefit from the opportunities unfolding in the solar energy industry.

The key markets for solar energy which are currently located mainly in the industrialized world, is tend to witness a global shift which will result in a significant share - about 20% or an annual market of 56 GW - being taken by the developing world for rural electrification in 2030.

In employment generation, solar power industry generates direct employment in the manufacture, sales, and installation of photovoltaic products. Indirect job creation happens in industries that provide components for the solar industry, as well as suppliers to these component industries.

With governments of a number of large countries worldwide (USA, India etc) keen on providing incentives to get solar industry to the next orbit, entrepreneurs should special attention to this industry.

Above all, the cost of electricity from Solar PV which was about $2 per KWh in 1980 is about 25 US cents per KWh today. Currently, it is felt that we are reaching a tipping point where solar energy sources will start becoming cost competitive with fossil fuel sources, especially when the costs of pollution from fossil fuels are factored in, using techniques such as a tax on CO2 produced.

Snapshots of status and potential of solar energy

Renewable Energy Sources	Capacity (GW)		Market Size (billion $)		Market Size Growth Rate (%)
	2008	Future Estimates	2008	Future Estimates
Solar PV	15.2	72	2.4	15.8	30
Solar Thermal	0.46 (2007)	6.4 (2012)	0.2	2.2	62

According to market studies, investment in solar energy is growing at 172% a year. This exceptional investing growth rate is expected to continue - and increase even faster - for the foreseeable future.

New Investments in Solar Energy ($ billions)

2004	2005	2006	2007	2008	2004-08 CAGR (%)
0.6	3.2	10.3	22.5	33.5	172%

Government mandates and incentives for solar energy

An additional factor is likely strengthen the solar energy business case and change solar investments from being a mere trickle a few years back into a - governmental support. All across the world - in developed, developing and under-developed countries - the governments have released mandates and programmes that show exceptional support for solar energy in the form of tax breaks, grants, subsidies and more. Solar PV currently is very expensive when compared to fossil fuel-based electricity generation; however, owing to the high potential that solar energy has as future renewable energy source, governments are keen on promoting this source. For instance, the Indian government has come up with an ambitious National Solar Mission in which it plans to provide significant subsidies to augment the solar energy potential in the country from almost nothing in 2009 to 20 GW in 2020.

How can individuals and entrepreneurs benefit from this dramatic opportunity?

Solar energy industry presents attractive opportunities to a wide range of people, including investors and entrepreneurs.

Business opportunities by scale of investments required

Scale of Investment	Type of Opportunity
Low	Installing solar panels Selling solar energy products Training people for the solar energy industry Consulting and industry research Solar equipment servicing
Medium	Setting up medium scale solar panel manufacturing plants Setting up manufacturing plants for components and accessories for the solar PV and solar thermal industry Setting up manufacturing units for a range of solar energy related products Setting up small and medium scale solar power plants Setting up R&D facilities for solar thermal ad solar PV research.
High	Setting up large-scale solar panel manufacturing plants Setting up large solar power plants or large-scale solar panel/collector installations Centralized grid-connected solar PV plants Centralized grid-connected solar Thermal plants Installing large-scale distributed solar PV panels Installing large-scale distributed solar thermal collectors