TRENDS IN PHOTOVOLTAIC APPLICATIONS

in selected IEA countries between 1992 and 2001

Contents
Chapter 1 Introduction 2

Chapter 2 Implementation of Photovoltaic Systems 3

Chapter 3 The PV Industry 10

Chapter 4 Framework for deployment 15

Chapter 5 Summary of trends 20

PV Technology Note 23

Foreword
The International Energy Agency (IEA), founded in which designates distinct ‘Tasks’, which may be
1974, is an autonomous body within the framework research projects or activity areas. This report has
of the Organisation for Economic Co-operation been prepared under Task 1, which facilitates the
and Development (OECD). The IEA carries out a exchange and dissemination of information arising from
comprehensive programme of energy co-operation the overall IEA-PVPS Programme.
among its 26 member countries and with the
participation of the European Commission.
“With this 7th issue of the International Survey
The IEA Photovoltaic Power Systems Programme Report (ISR) on trends in photovoltaic applications,
(IEA-PVPS) is one of the collaborative research and IEA PVPS is happy to publish the survey
development agreements within the IEA and was of 10 consecutive years of photovoltaic market
established in 1993. The mission of the programme development. Photovoltaic products, applications
is to “enhance the international collaboration efforts and markets continue to expand rapidly all over the
through which photovoltaic solar energy becomes world, in parallel with a growing industrial basis.
a significant renewable energy source in the near These reports have gradually focused on the most
future”. The underlying assumption is that the market important facts and figures of photovoltaic markets
for photovoltaic (PV) systems is in the process and industry as well as different initiatives in IEA
of expanding from the present niche markets of countries. The IEA-PVPS Programme is proud to
remote applications and consumer products, to the systematically track the important trends in the
utility market, through building-integrated and other deployment of this new and sustainable energy
distributed and centralized PV generation systems. technology and hope that this report can contribute
to objective information on the important trends and
In order to achieve this, the 20 countries participating raise the awareness about the exciting developments
in the programme and the European Commission in this area.”
have undertaken a variety of joint research projects
in applications of PV power systems. The overall Stefan Nowak
programme is headed by an Executive Committee, Chairman IEA-PVPS Programme
comprising one representative from each country, July 2002

This report has been prepared under the supervision of Task 1 by Alan Taylor of Halcrow Group Ltd (GBR) on the basis of National Survey reports
prepared by Task 1 participants and their assistants. The work has been funded by the IEA-PVPS Common Fund and has been approved by the
IEA-PVPS Executive Committee.
Many thanks to all Task 1 participants who supplied images for this report.
To obtain additional copies of this report or information on other IEA-PVPS publications contact the IEA-PVPS website at www.iea-pvps.org.

August 2002

1
 1.2 Survey method
Data for this publication were drawn from national
survey reports2, which were supplied by
representatives from each of the participating
countries. A list of the national representatives and their
assistants is given at the end of this publication.

The scope of the reports is limited to PV applications

with a peak rating of 40 W or more. Most national
data supplied were accurate to ±10 %, although data
on production levels and system prices vary depending
on the willingness of the relevant national PV industry
to provide data for the survey.

The technical writer analysed the data provided in the

national survey reports and subsequently prepared this
report. Following review by the national representatives
PV roof-lights at the JPS - Presse and Vertriests GmbH buildings
in Meckenheim, Germany the report was approved by the IEA-PVPS Executive
Committee.
1 Introduction
1.1 Survey report scope and objective 1.3 Definitions, symbols and abbreviations
As part of the PVPS programme, annual surveys of Standard ISO symbols and abbreviations are used
photovoltaic (PV) power applications and markets in throughout this report. The electrical generation
the 20 participating countries1 are carried out. The capacity of PV cells or systems is given as watt peak
objective of the survey reports is to present and (W). This is the peak power of a PV module or system
interpret trends in both PV systems and components under standard test conditions of 1 000 W.m-2
being used in the PV power systems market, and irradiance, 25 °C junction temperature and solar
changing applications for these products within that reference spectrum AM 1,5. The term PV system
market. These trends are analysed in the context of the includes the modules, inverters, batteries and all
business, policy and non-technical environment in the associated installation and control components as
reporting countries. appropriate. The currency used is the US Dollar (USD),
and the exchange rates used for the conversion from
The survey report is not intended to serve as national currencies are given at the end of the report.
an introduction to PV technology, nor as a policy
document. It is prepared to assist those responsible for
developing the business strategies of PV companies
and to aid the development of medium term plans
for electricity utilities and other providers of energy
services. It also provides guidance to government
officials responsible for setting energy policy and
preparing national energy plans.

This report presents the results of the seventh

international survey. It provides an overview of PV
power systems applications and markets in the
reporting countries at the end of 2001 and analyses
trends in the implementation of PV power systems
between 1992 and 2001. PV modules at the Airdie Environmental Centre, Canada
1
Australia (AUS), Austria (AUT), Canada (CAN), Denmark (DNK), Finland (FIN), France (FRA), Germany (DEU), Israel (ISR), Italy (ITA), Japan (JPN), Korea
(KOR), Mexico (MEX), the Netherlands (NLD), Norway (NOR), Portugal (PRT), Spain (ESP), Sweden (SWE), Switzerland (CHE), the United Kingdom
(GBR), the United States of America (USA)
2
A survey report was not available from Portugal or Spain this year and so the most recent data were used where appropriate.

2
2 Implementation of Photovoltaic Systems
2.1 Applications for photovoltaics
There are four primary applications for PV power systems:

Off-grid domestic Grid-connected distributed PV systems are a relatively

systems provide electricity recent application where a PV system is installed to supply
to isolated households in power to a building or other load that is also connected
remote areas. They provide to the utility grid. These systems are increasingly integrated
electricity for lighting, into the built environment and are likely in the future to
refrigeration and other low become commonplace. They are used to supply electricity
power loads and have to dwellings, commercial and industrial buildings, and are
been installed worldwide, typically between 0,4 kW and 100 kW in size. The
particularly in developing systems usually feed electricity back into the utility grid
countries, where they are often the most appropriate when electricity generated exceeds the building loads.
technology to meet the energy demands of isolated These systems offer a number of advantages: distribution
communities. Off-grid systems generally offer an losses are reduced because the systems are installed at
economic alternative to extension of the utility electricity the point of use, no extra land is required for the PV
distribution grid at distances of more than 1 or 2 systems, costs for mounting systems can be reduced,
kilometres from existing power lines. and the PV array itself can
be used as a cladding
or roofing material as
‘building integrated PV’
(BIPV). Compared to an
off-grid installation, system
costs are lower as generally
Off-grid non-domestic energy storage is not
installations were the first required, a factor that also
commercial application for improves system efficiency
terrestrial PV systems. They and decreases the
provide power for a wide environmental impact.
range of applications, such
as telecommunications, water
pumps, vaccine refrigeration,
navigation aids, aeronautical warning lights and Grid-connected centralized systems have been
meteorological recording equipment. These are installed for two main purposes: as an alternative to
applications where small amounts of power have a high centralized power generation from fossil fuels or nuclear
value, and thus PV is commercially competitive. energy, or for strengthening of the utility distribution
grid. Utilities in a number of countries are interested in
investigating the feasibility of these types of power plants.
In past years demonstration plants have been installed
in Germany, Italy, Japan, Spain, Switzerland and the USA,
generating reliable power for utility grids and providing
experience in the construction,
operation and performance of such
systems.

3
2.2 Total photovoltaic power installed
A total of 982 MW of PV power had been installed a wide range of applications. In Finland, Norway and
in the reporting countries by the end of 2001. The Sweden, the majority of off-grid PV systems are used
increase in installed capacity between 1992 and 2001 for seasonal and recreational buildings and remote
is shown in Figure 1, broken down into the four primary cabins. In France and Mexico, PV is used as a
applications for PV power systems. This represents strategy for rural electrification. In Australia, Canada,
a significant3 proportion of the worldwide installed PV Korea and Japan most off-grid systems are non-
power, and will be indicative of the global trend. domestic and provide power for pumps, agriculture,
traffic signals and telecommunications and also in
Figure 1 - Cumulative installed PV power by Canada for extensive monitoring and controls in the
application area in the reporting countries oil and gas fields. For remote areas PV provides
a commercial alternative to diesel and central grid
supplies.

However, the overall trend is a rapid increase in the

proportion of PV power that is grid-connected. In
1992 only 29 % of the cumulative installed capacity
was connected to the grid - by the end of 2001 this
had reached 68 %, of which 93 % was for distributed
systems. However, there was revised interest in grid-
connected centralized PV, with over 8 MW installed in
2001, mainly in Germany and The Netherlands.

Figure 2 - Percentage of PV power in the

reporting countries

Between 1992 and 2001 the annual rate of growth

of total installed capacity varied from year to year
between 20 % in 1994 and 40 % in 2000. Between
2000 and 2001 the rate of increase was 35 %. It can
be seen from Table 1 and Table 2 that the majority of
this rise is due to the continued increases in Japan
(122 MW) being joined by a significant increase in
Germany (81 MW). Indeed it can be seen that of
the 257 MW installed in 2001, 79 % was installed
in Japan and Germany alone. This continued high
rate of installation in Japan increases this country’s
lead in installed power per capita (3,6 W per capita)
significantly above that of the second highest of Government or utility supported programmes in
Switzerland (2,4 W per capita). Japan, Germany, the USA and the Netherlands have
driven the rapid rise in grid-connected distributed
applications. These generally focus on PV in the urban
Figure 2 indicates that until 1999 most PV systems
environment. Significantly, the rates of increase in
installed were for off-grid applications. This is still
countries already with high levels of installed capacity
true in the majority of the reporting countries and
have been high. Thus, increases over the year in the
Figure 3 illustrates that in Canada, Finland, France,
Netherlands (86 %) and Germany (78 %) imply step
Israel, Mexico, Norway and Sweden over 90 % of the
changes in the supply infrastructure to deliver high
total installed capacity is off-grid. This encompasses
volumes of grid-connected systems.

3
At the end of 1999, the worldwide installed PV capacity was estimated to be 931 MW [Photovoltaics in 2010: an Update and Observatory for the
Millennium, EPIA for the EC (Altener XVII/4.1030/X/99-579), 2001]. In non-IEA countries this was predominately for off-grid applications.

4
Figure 3 - Installed power by application in the reporting countries in 2001

Table 1 - Cumulative installed PV power as of the end of 2001

Country Off-grid Off-grid Grid- Grid- Total Total Power

domestic non-domestic connected connected installed installed in
distributed centralized per capita 2001
kW kW kW kW kW W/Capita kW
AUS 10 960 19 170 2 800 650 33 580 1,73 4 370
AUT 1 955 4 440 241 6 636 0,81 1 762
CAN 3 322 5 162 341 11 8 836 0,28 1 682
CHE 2 480 220 13 340 1 560 17 600 2,42 2 300
DNK 50 160 1 290 1 500 0,28 40
DEU 6 200 10 500 162 000 16 000 194 700 2,34 80 900
ESP1 5 900 1 100 600 1 480 9 080 0,23
FIN 2 392 249 87 30 2 758 0,53 206
FRA 8 912 3 972 972 13 856 0,23 2 525
GBR 135 385 2 226 2 746 0,05 817
ISR 253 200 6 14 473 0,08 32
ITA 5 300 6 350 1 635 6 715 20 000 0,35 1 000
JPN 600 68 960 379 770 2 900 452 230 3,57 122 010
KOR 376 3 857 524 4 757 0,10 797
MEX 12 349 2 614 9 14 972 0,15 1 043
NLD 4 330 13 699 2 480 20 509 1,28 7 750
NOR 5 810 335 65 6 210 1,38 180
PRT2 484 176 268 928 0,09
SWE 2 376 507 149 3 032 0,34 227
USA 50 500 64 700 40 600 12 000 167 800 0,60 29 000

Total 118 399 194 902 624 821 44 081 982 203 1,01 256 641

1
No data available for 2001or 2000. Installed PV power as at 31 December 1999
2
No data available for 2001. Installed PV power as at 31 December 2000

5
 Table 2 - Cumulative installed PV power: historical perspective

Cumulative installed PV power

kW
Country 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001
AUS 7 300 8 900 10 700 12 700 15 700 18 700 22 520 25 320 29 210 33 580
AUT 573 839 1 133 1 361 1 739 2 208 2 931 3,672 4 874 6 636
CAN 960 1 240 1 510 1 860 2 560 3 380 4 470 5 826 7 154 8 836
CHE 4 710 5 775 6 692 7 483 8 392 9 724 11 500 13 400 15 300 17 600
DNK 85 100 140 245 422 505 1 070 1 460 1 500
DEU 5 619 8 900 12 440 17 790 27 890 41 890 53 900 69 500 113 800 194 700
ESP 3 950 4 649 5 660 6 547 6 933 7 100 8 000 9 080 9 080 9 080
FIN 914 1 034 1 156 1 288 1 511 2 042 2 170 2 302 2 552 2 758
FRA 1 751 2 051 2 437 2 940 4 392 6 118 7 631 9 121 11 331 13 856
GBR 173 266 338 368 423 589 690 1 131 1 929 2 746
ISR 100 120 150 180 210 265 308 401 441 473
ITA 8 480 12 080 14 090 15 795 16 008 16 709 17 680 18 480 19 000 20 000
JPN 19 000 24 270 31 240 43 380 59 640 91 300 133 400 208 600 330 220 452 230
KOR 1 471 1 631 1 681 1 769 2 113 2 475 2 982 3 459 3 960 4 757
MEX 5 400 7 100 8 820 9 220 10 020 11 022 12 022 12 922 13 929 14 972
NLD 1 270 1 641 1 963 2 400 3 257 4 036 6 480 9 195 12 759 20 509
NOR 3 800 4 100 4 400 4 650 4 900 5 150 5 404 5 726 6 030 6 210
PRT 169 219 258 336 424 527 648 844 928 928
SWE 800 1 040 1 337 1 620 1 849 2 127 2 370 2 584 2 805 3 032
USA 43 500 50 300 57 800 66 800 76 500 88 200 100 100 117 300 138 800 167 800
Total 109 940 136 240 163 905 198 627 244 706 313 984 395 711 519 933 725 562 982 203

2.3 Major projects, demonstration and field systems in 2001 of which 78 % were also for off-grid
test programmes systems.

Although off-grid PV applications account for the

majority of the total installed power in many countries
there are few major projects or demonstration
programmes in this sector. This may be the result of
the off-grid market being relatively well established
and, by its nature, installed systems tend to be small
and isolated. Thus, the majority of the new projects
and programmes for 2001 reported below are for grid-
connected systems.

Australia (AUS)
Growth in off-grid applications for PV is set to
increase as the Renewable Remote Power Generation
Programme commenced in 2001. Whilst each State
has established varying criteria, in general the target
groups are indigenous and other small communities,
commercial and isolated domestic applications. Grants PV lights in the Olympic Boulevard in Sydney, Australia
of up to 50 % are available for all renewable sources
that replace diesel generators. This is a long term Austria (AUT)
project, which may extend to 2010. The PV rebate Two very visible projects were completed in 2001, a PV
programme, focusing on BIPV, installed another 1 100 noise barrier and a Solar Street. The noise barrier on

6
the A2 motorway at Gleisdorf stretches for 1,3 km 1 MW in 2001. Of new installed capacity, around
and contains both amorphous and multicrystalline cells 300 kW per year is grid-connected. A new rate based
with an installed power of 101 kW. The project will subsidy scheme for grid-connected generation is in
monitor the performance and issues involved with preparation that will aim to deliver 20 MW of BIPV
operating PV systems in conditions exposed to dirt systems in 5 years.
and impact damage. Also at Gleisdorf, an exhibition
item called the “Street of Solar Energy” helped to Germany (DEU)
illustrate the potential of PV systems to the 200 000 The success of the combination in Germany of the
visitors to the event. 100 000 roofs programme, the Renewable Energy
Law and earlier initiatives is illustrated by a significant
Canada (CAN) increase in numbers of grid-connected systems, with
Demonstration projects focused on BIPV systems 72 MW of distributed systems and 6 MW of centralized
aimed to demonstrate both retrofit and new build systems installed in 2001. The average size of PV
experience for designers and contractors. Projects plant is steadily growing and provides an illustration
include Canada’s first PV curtain wall, at the British of the financial attractiveness of PV plant under these
Colombia Ministry of Health, the first phase of a measures. Two commercial centralized grid-connected
140 kW system on the CN Tower in Toronto at projects have been started which have individuals as
a height of 400 m, the 40 kW Niigon Technology share holders. The first is a ground mounted 1,6 MW
Centre sustainable development showcase, and two plant at Hohenfels-Markstetten in Bavaria and the
demonstration building-mounted PV systems funded second is the first phase of a 5 MW roof mounted plant
by utility companies. Following a downturn in 2000, at Relzow, in Mecklenburg-Vorpommern. The more
the off-grid domestic market grew strongly (43 %) modest 300 Parishes for Solar Energy aims to develop
despite no support or subsidy programme. experience of distributed BIPV systems installed
(791 kW) in historic buildings and the Sun at School
Denmark (DNK) programme continues with 310 kW installed in 2001.
In 2001 the Government approved the SOL 1 000
programme, designed to build on the earlier success Israel (ISR)
of the SOL 300 projects, and within a few weeks more Nearly all of the applications in Israel are off-grid
than 3 000 households registered for the programme. remote electrification systems. Most installations are
This programme, aimed at single-family dwellings, is made on an economic basis, PV being the most
envisaged as the last “demonstration” project and economically viable alternative (because of distance
standard subsidies are intended to follow in due from the electric grid). A range of advanced research
course. A PV support programme for the commercial activities continues at universities and research
sector, providing a subsidy of up to 36 % of the total institutes, funded mainly by the Ministry of National
cost, has had a limited impact due to a limited uptake. Infrastructures. The Ministry of the Environment
is promoting PV through information dissemination
Finland (FIN) activities. The Israel Electric Corporation is to invest
Ekoviikki, a new suburb of Helsinki, is a unique 1 million USD in a 30-home grid-connected project in
demonstration project of ecological and sustainable the Arava Valley, north of the resort city of Eilat, to
housing. It is intended that this area will include up to investigate grid-connection and net-metering issues.
35 kW, of which at least 24 kW will be BIPV systems
integrated into balcony structures. Italy (ITA)
With the imminent arrival of the major roof-top
France (FRA) programme, projects during 2001 have been limited
The emphasis in France continues to be for off-grid to a number initiated by ENEA (Italian Agency for
systems as part of a rural area electrification strategy, New Technology, Energy and Environment). These 18
with the rate of installation of around 1,5 MW per projects (totalling 50 kW) are designed to assess
year. The successful ‘FACE’ programme continues and the architectural, performance and technical details of
has to date delivered over 1,1 MW of capacity in the solutions that will be installed under the roof-top
continental France. In the overseas Départements, tax programme which commences in 2002.
exemptions and direct grants delivered just under

7
Japan (JPN) USAID and USDOE for the electrification of farms with
Japan continues to make progress in implementing PV have in 2001 concentrated on training installers
significant PV capacity through a range of research and suppliers. The PV roof project aimed at reducing
demonstration and market measures that provide peak electrical loads in specific regions continued with
targeted support in a number of sectors. Most of most activities related to evaluation of the lead projects.
these measures provide a direct subsidy towards
the installation costs of the equipment. Whilst the The Netherlands (NLD)
majority (over 80 %) of systems are installed in Innovative large scale and domestic scale projects
domestic installations of between 3 – 5 kW, interest in have commenced in 2001. The world’s largest
institutional, commercial and industrial applications is centralized PV plant is the 2,3 MW BIPV system on
growing. PV systems on public facilities accounted for a roof at the Floriade Exhibition Centre. Cooperative
5 % of installed systems and were typically in working between three city councils (Heerhugowaard,
the range 10 – 50 kW, whilst commercial and Alkmaar, Langedijk) and NOVEM has launched a 5 MW
industrial applications tend to be larger (10 – project to install PV systems on new-build houses and
100 kW) and account for another 5 % of recreational facilities.
installations. The unsupported commercial off-grid
Norway (NOR)
market (telecommunications, remote monitoring etc.)
Only one new demonstration project was completed
is also thriving.
in Norway in 2001, the installation of 16 kW
on a headquarters building in Stavanger as BIPV
to demonstrate grid-connected PV power. Other
projects, including a series of European Commission
demonstration projects called “PV Nord”, were under
preparation and will commence in 2002.

Sweden (SWE)
Seven main demonstration projects are reported as
being commissioned in 2001, mainly in educational
facilities. The largest of these, at Almedalens Library
in Gotland (5 kW) and at the Harmonihuset in
Malmö (8 kW) also provide a level of solar shading.
Building companies are increasingly expressing interest
The 630kW Solar Ark in Gitu, Japan in the need for training in PV system installation and
maintenance.
Korea (KOR)
The government continues to support the Switzerland (CHE)
demonstration and field tests of various PV In 2001, a total of 45 pilot and demonstration projects
applications and has made efforts to encourage local were active, of which 11 were newly started. The
authorities to implement their own demonstrations majority of the newly started projects were concerned
projects under the Local Energy Programme. The with building integration, especially in roofs. Other
largest of these is a 107 kW system at the International innovative projects include a PV passenger vessel on
Cave Exposition site in Samcheok, Gangwon Province. the lake at Zurich and a 17 kW installation at St. Moritz
2001 also saw the first residential roof-top system in that utilized CIS technology. Multifunctional projects
Korea. (PV / shading; PV / sound barriers) continue to be a
feature.
Mexico (MEX)
The majority of PV projects are directed at the United Kingdom (GBR)
5 % of Mexicans in rural regions without grid- Four developments totalling 69 kW were
connected electricity. These projects have as their key commissioned under the first round of the Domestic
aims poverty alleviation and agricultural development. Field Trial (DFT) in 2001. In preparation for the major
Actions carried out since 1993 with the assistance of demonstration project launched in 2002, a second

8
 round of the DFT field trials and a new field trial concluded in 2001, having assisted, by direct subsidy,
focussing on large-scale public buildings commenced the installation of 9 MW of systems.
in 2001 to evaluate the design and practical
implementation aspects of the installations. In the
Beddington Zero Energy Development (BedZED) PV
provides charging points for 40 electric vehicles in
this carbon neutral development of 80 houses and
workspaces. A 16 kW array on “Big Brother House”
– a reality TV show – brought PV promotion to an
audience of many millions.

United States of America (USA)

The US PV programme made significant progress
during 2001 with continuing and new projects in
California. The State’s PV “buy down” programme
resulted in the installation of 600 grid-connected
residential systems and nearly 1 MW of commercial
grid-connected capacity. The Sacramento Municipal
Utility District (SMUD) launched its Pioneer II
programme offering subsidized systems to mainly
commercial customers. The PVUSA utility scale
procurement programme by the Department of Energy PV parking shelters in California, USA

Table 3 - Public budget for R&D, demonstration and market stimulation in 2001

Annual budget
Million USD

Country R&D Demonstration Market stimulation Total

AUS 0,508 2,183 6,245 8,936

AUT 0,554 0,554
CAN 1,241 0,305 0,403 1,950
CHE 9,127 1,240 3,549 13,916
DNK 0,629 0,572 1,201
DEU 26,725 5,476 29,646 61,846
ESP
FIN 0,520 0,520
FRA 8,346 7,409 15,755
GBR 4,706 4,706
ISR 0,225 0,225
ITA 5,536 34,321 39,857
JPN 50,964 16,507 188,389 255,860
KOR 1,768 4,507 6,274
MEX 0,726 0,726
NLD 2,983 0,081 5,950 9,015
NOR 1,125 1,125
PRT
SWE 1,533 1,533
USA 35,000 84,600 119,600

Note: The costs of obligations placed on utilities are not included in the above table as these are generally passed to all electricity
consumers

9
 2.4 Public budgets for market estimated that this figure accounts for 85 % to 90 %
of cells produced worldwide. This figure is a significant
stimulation, R&D and increase (42 %) on the cell production during 2000.
Module production grew strongly again during 2001 to
demonstration total 319 MW as illustrated in Figure 4. This figure also
The rapid growth in the rate of installation of PV indicates an apparent low level of utilisation (60 %) of
capacity has been supported by significant National, the reported 532 MW of production capacity available.
Federal and State budgets for market stimulation, This effect is likely to be a reflection of a rapidly growing
research and development, and demonstration. industry in which bottlenecks in component supply
Table 3 gives these budgets for 2001 for a chains can be expected and for which facilities are in
selection of reporting countries. It should be noted the process of being built, but are not fully operational,
that the boundaries of what constitutes ‘research’, at the time of reporting.
‘development’, ‘demonstration’ and ‘market stimulation
Figure 4 - PV module production and module
measures’ often vary from country to country and
production capacity between 1993 and 2001
are thus not always comparable. Where possible,
estimates of the breakdown between these elements
have been made.

It is clear that the budget for the demonstration of

technologies remains a small proportion of the total
spent in this area, this year about 6 % of the total
reported. The greatest proportion of effort is directed
towards market stimulation measures that account
for 67 % of budget spending. It is interesting to
note that while not all countries report spending
on demonstration projects or market stimulation
measures, consistent programmes for R & D are
common.

3 The PV Industry
3.1 Photovoltaic cell and module production The increase in module production can be attributed to
The total PV cell production reported in 2001 was in 34 % rise in production in Japan being complemented by
the order of 345 MW. This figure includes production increases of 32 % in the USA and 36 % in Europe. It can
for off-grid power applications of smaller than 40 W, be seen from Table 4 that, as in 2000, over 57 % of all the
but generally not for small consumer applications. It is modules produced in 2001 were from Japan.

Table 4 - PV cell and module production in 2001 by world region

Cell Cell Module production Module

production production production
capacity capacity
Crystalline Amorphous Other/Both Total
Japan 170 236 157 14 11 182 293
USA 104 150 55 11 8 74 117
Europe 62 98 16 11 29 56 111
Rest 10 11 7 7 11

TOTAL 345 494 235 36 48 319 532

10
Module production remains based, predominantly, on Amorphous silicon manufacturers are normally
crystalline silicon technologies, of which approximately vertically integrated production lines, as the cell and
60 % is multicrystalline and 40 % is single crystalline. module are usually built in the same process.
Amorphous silicon products have still to make a
significant impact on the PV power market, although The major manufacturers maintain extensive in-house
recent drops in amorphous silicon module production research and development teams, and are actively
were reversed in 2001 with a sharp rise of 59 %. promoting new products and new product formats to
meet distinct market groups. Significant effort is also
Table 5 lists the key PV product manufacturers in each directed towards automating production facilities to
of the reporting countries. The manufacturers can be decrease cost and increase quality. For details of these
divided into two broad categories: firstly, those who new products and new production facilities, reference
purchase ready-made cells and assemble them into should be made to the relevant National Survey Report
modules; secondly, vertically integrated manufacturers on the PVPS Programme website (www.iea-pvps.org).
who manufacture their own cells and modules.

Table 5 - PV Product manufacturers in reporting countries

Country Company Technology Total production Maximum production capacity

type Cell Module Cell Module
MW per year MW per year MW per year MW per year
AUS BP Solar sc-Si 4 2,5 4 2,5
mc-Si 6 3,7 6 3,7
STI Titania Dye 0,01 0,01 0,5 0,5
CAN ICP Global sc-Si, mc-Si 2
CHE Star Unity sc-Si 0,02 0,1
Solterra SA sc-Si
SES sc-Si
Swiss Sustainable Systems sc-Si 1
VHF Technologies a-Si 0,1
DNK Gaia Solar mc-Si,sc-Si 0,09 0,33

DEU >30 companies mc-Si, sc-Si, EFG, 31,8 28,94 57 56,05

a-Si, CIS, CdTe
ESP Atersa sc-Si 1 1,5
(2000) BP Solar Espana sc-Si 4,4 4,6 4,4 10
Isofoton sc-Si 0,64 3,4 0,64 5
FRA Photowatt International mc-Si 13,6 5 14 7
Free Energy Europe a-Si 0,5 1
GBR Intersolar a-Si 1,6 1,6 3 3
ITA Eurosolare sc-Si 0,5 0,5 0,5 0,5
mc-Si 4 4 4 4
Helios Technology sc-Si 2 2 2,5 2,5
JPN Kyocera mc-Si 55 54 60 60
Sharp sc-Si 10,89 10,89 94 94
mc-Si 64,12 64,12
a-Si 0,01 0,01
Sanyo Electric a-Si 4 4 5 5
a-Si/sc-Si 10 10 28 28
Canon a-Si/micro- 1,59 10
crystalline-Si

11
 Table 5 - continued

Country Company Technology Total production Maximum production capacity

type Cell Module Cell Module
MW per year MW per year MW per year MW per year
JPN Showa Shell Sekiyo sc-Si 0,6 2
Mitsubishi Electric mc-Si 14 14 16 16
Kaneka a-Si 8 8 20 20
Matsushita Battery CdS/CdTe,mc-Si 1,2 1,2
MSK mc-Si 8 35
sc-Si 5 25
Matsushita Seiko sc-Si 0,6 0,6 2 2
mc-Si 0,1 0,1 1 1
Asahi Glass sc-Si/mc-Si 0,1 0,2
Kobe Steel mc-Si 0,1 1,2
Fuji Pream sc-Si 0,01 0,1
mc-Si 0,02
Nisshin A & C a-Si 1,3 3,6
KOR LG Industrial System sc-Si 0,35 0,5
Samsung Electronics mc-Si 0,35 0,5
Haesung Solar sc-Si 0,07 0,5
Solar Tech sc-Si, mc-Si 0,13 0,5
NLD Shell Solar Energy mc-Si 3,4 3,4 3,5 7
AKZO Nobel
Logic Electronics
NOR ScanCell mc-Si 8
SWE GPV sc-Si, mc-Si 10
Arctic Solar mc-Si 0,85 1
Sunpeak mc-Si 1
USA Shell Solar sc-Si 38 30 40 40
CIS 0,7 0,7 2,5 2
Cd-Te 0,3 0,3 0,3 0,3
BP Solar mc-Si 17,7 15 24 24
a-Si 7 7 9 9
AstroPower sc-Si 26 10 50 20
Si film 1 1 2 2
ASE Americas EFG-Si 8 5 10 10
United Solar Systems
(USSC) a-Si 3,8 3,8 5 5
Evergreen Solar String ribbon 0,4 0,4 4 4
Other 0,8 0,5 3 1

TOTALS 345,16 318,76 493,84 532,18

Notes sc-Si single crystal silicon

mc-Si multicrystalline silicon
3.2 Balance of system component
EFG edge fed growth silicon manufacturers and suppliers
a-Si amorphous silicon
A large industry exists manufacturing balance of
CIS copper indium diselenide
CdTe cadmium telluride
system components such as inverters, batteries and
battery charge controllers, D.C. switch-gear and array
support structures. The “PV Technology Note” at
the end of this publication provides a brief technical
description of these components.

12
The price of grid-connect inverters has shown This large range of reported prices is likely to be a
continued reductions in 2001. Typical prices are function of the project specific factors.
between 450 to 750 USD per kVA capacity for
inverters in the range of 1 to 10 kVA. Prices are The installed price of grid-connected systems also
generally lower for larger units. Stand-alone inverters varied widely in 2001. The lowest reported were
also tend to be cheaper since they do not need the approximately 4,6 USD per watt for large scale (> 1
additional control and protection functions required MW) systems installed in Germany, and 4,5 to 5,0 USD
for grid-connection and are not, generally, required to per watt in the USA.
produce a pure sine wave output.
Figure 5 shows that, whilst during 2000 there appears
In the absence of an international standard for to have been a levelling of prices – probably due
grid-connection, the choice of inverters is largely to specific cases of high demand – the overall trend
determined by those manufacturers that comply remains at around 4 % reduction per annum. Note
with the requirements for connection pertinent to a that this figure shows system price trends, and
particular country. Many inverters now include a digital there are many local factors – an example may
output display and data acquisition system connection be grid-connection costs - that can influence the
as standard. Manufacturers in the USA and Germany prices in various countries. It is interesting to note a
have developed dual inverters so that grid-connect convergence of prices, indicating that more worldwide
systems can also be used as a back up in times of trading of modules is levelling out product prices.
grid failure. Figure 5 also shows trends in module prices for some
countries and it can be seen that these are generally
3.3 System prices 40 – 50 % of installed system costs.

Prices for entire PV systems vary widely and Table 6 gives some indication of how the purchase
depend on a variety of factors including system size, prices of modules that are common in the country
location, customer type, grid connection and technical indicated have varied over the last four years.
specification. For example, for BIPV systems the price Table 7 provides a comparison of the price of
of the system will vary significantly depending on typical applications delivered as complete projects.
whether the system is retrofit or is integrated into a
new building structure. Another factor that has been Figure 5 – PV system price trends in some reporting
shown to have a significant effect on price is the countries
presence of a market stimulation measure, which can
have dramatic effects on demand (and thus supply)
of equipment in the target sector. The cost and
complexity of permits and controls on grid connection
can also be a significant factor for smaller systems.

System prices for off-grid applications tend to be

greater than those for grid-connected applications,
as the latter do not require batteries and associated
equipment. In addition, for off-grid applications,
provision is sometimes made in the system price for
a programme of battery replacement approximately
every seven years.

In 2001, systems prices in the off-grid sector up to

1 kW varied from 7 to 19 USD per watt - a very
similar range was reported for systems larger than 1 kW.

13
 Table 6 - Module prices in selected countries

Indicative module prices in national currency

Currency 1998 1999 2000 2001

AUS AUD 8,0 8,0 8,0

CAN CAD 11,1 10,7 9,4
DNK DKR 40,0 40,0
DEU EUR 3,7 3,6 3,8 3,8
FIN EUR 9,3 9,0 8,0
GBR GBP 3,5
ITA EUR 4,1 4,3
JPN JYP 670 600 548 484
KOR KRW 9 200 7 500 7 100 7 200
NLD EUR 5,0 4,8 4,7 4,7
USA USD 4,0 3,5 3,8 3,5

Note: These prices are example module prices for applications in the country concerned and exclude sales taxation,
delivery or installation

Table 7 - Installed system prices in selected countries

Off-grid Grid-connected
<1 kW > 1kW < 10 kW >10 kW
USD per W USD per W USD per W USD per W

AUS 11,7 9,4 7,1 6,3

AUT 6,8 6,2
CHE 11,3 9,0 7,0 6,1
DNK 9,2 20,0 6,9 10,9
DEU 7,0 7,8 5,5 4,7
FIN 13,2 6,8 6,8
FRA 12,8 19,6
GBR 14,0 11,9 10,6 9,4
ITA 11,5 11,1 6,3 6,1
JPN 6,2 7,6
KOR 18,1 17,4 11,5 10,3
MEX 13,3
NLD 5,6 5,3
NOR 10,7 10,7
SWE 16,6 6,2
USA 18,5 16,0 10,0 8,5

Note: These prices are indicative installed system prices and exclude sales taxation

3.4 Employment
in manufacturing (including company R & D) and 50 %
The wide scale implementation of government in other roles that include installers, utility companies
programmes to support PV development has led to and government. In those counties with high growth
the creation of many direct and indirect labour places. rates of installed capacity, such as Germany and
Table 8 gives estimates of PV industry employment in Japan, rapid growth in employment has occurred in
some of the reporting countries. In those countries able those organisations concerned with the manufacture,
to disaggregate the data, 10 % worked in R & D, 40 % supply and installation of systems.

14
Table 8 - PV industry employment in some countries

R&D Manufacturing Other Total

persons persons persons persons

AUS 30 320 250 600

AUT 475
CAN 40 75 160 275
CHE 130 5 350 485
DNK 8 15 10 33
DEU 460 2 200 3 340 6 000
FIN 15 20 50 85
FRA 65 320 170 555
GBR 65 170 125 360
ITA 110 75 300 485
JPN 300 1 700 2 000 4 000
KOR 42 77 32 151
NLD 140 300 160 600
NOR 14 140 12 166
SWE 23 84 13 120

Note: R & D: Research and development (not including companies)

Manufacturing: of PV system components, including company R & D
Other: includes within utilities, installers, distributors, and government

4 Framework for deployment growing number of customers are concerned about

the environment and prepared to pay more for
Local, national and international policies and the electricity generated from environmentally-benign
perception of the general public and utilities govern the sources. Public opinion appears to be generally
rate of deployment of PV systems. The availability of supportive of PV, with a growing level of awareness
suitable and acceptable standards and codes is also and access to information reported in many countries.
a major factor.
Utilities are also increasingly supportive of PV. In
4.1 New initiatives in photovoltaic power countries where it is permitted, many now offer ‘net
systems metering’, where the consumer only pays for the
difference between the electricity generated by their PV
Whilst increasing emphasis is being placed on market system and the electricity purchased from the utility
stimulation measures, research and development grid. Some utilities are investing in PV as part of
initiatives still attracted much interest from public corporate policy, to avoid the costs of grid extensions
funding agencies. Demonstration programmes play a in remote areas, or to counter the effects of demand
diminishing role. Table 9 highlights the key initiatives peaks in hot weather. The value of other network
reported in the participating countries during 2001. benefits attributed to PV does not, though, appear
to be recognized. The disaggregation and privatisation
In general, the wide range of fiscal instruments of the primary electricity generation and supply
being used to support or promote PV include: businesses in many participating countries continues
reduced interest rates on loans, tax credits, to gather pace. The lower bulk prices of electricity
accelerated depreciation, government or regional generation that result are not positive for the higher
grants, preferential tariffs and ‘green electricity’ cost generation provided by PV. However, the market
schemes. The prevalence of green electricity schemes reforms may allow for easier grid access for small
in the reporting countries demonstrates that a generators.

15
Table 9 - Initiatives and perceptions

Promotional Initiatives Utility and public perceptions

AUS The off-grid PV market is set to expand rapidly, with Although utilities are generally supportive of PV, few are
the commencement of the substantial Renewable active in installing any significant systems. The public
Remote Power Generation Programme, which have shown strong support for PV, demonstrated by the
generally offers a 50 % rebate on components used over subscription to the PV roof-top programme and
to replace diesel fuelled generators. the Renewable Remote Power Generation Programme.
However, even with grants, the household costs of
installing PV are still perceived as high.

AUT Each state within Austria has implemented The liberalization of the electricity market in Austria
programmes that give varying support to PV. Some has transformed the market for new renewables in the
are very ambitious, with combinations of direct country, with an obligation on supply from new generation
subsidy and preferential tariffs. sources and the emergence of green electricity suppliers.
Standardized energy supply patterns are available for small
(<50 kW) generators and guarantee simple grid access for
PV.

CAN Within the framework to reduce greenhouse gas Deregulation of the electricity industry in two provinces
emissions, a number of programmes are delivering has lead to some product offerings for green electricity,
PV projects. These include innovation, community however these have a limited impact as yet. Government
and infrastructure related activities. regulations and utility attitudes strictly prohibit net-
metering. Applications for grid connection are still
considered on a case-by-case basis, however there is a
concerted effort to reduce these barriers.

CHE No new promotional initiatives have started during Utility companies are continuing to make efforts to promote
2001, but the Swiss National Exhibition “Expo.02” their “green” electricity offerings, which are estimated
includes a programme launched in April 2001 that to account for 20 % of the market. The possibility
promote renewable energy and energy efficiency. that liberalization of the electricity market may depress
wholesale market prices for electricity is partially offset
by increased opportunities for “green electricity” marketing
and exception of low voltage supply from energy transport
costs for 10 years.

DNK The launch of the SOL-1000 programme as The focus within utilities is for the interest in small,
a successor to the SOL-300 programme has perhaps DIY, installations as a major new business area.
been welcomed and intends to deliver 1000 The Public Service Obligation by utilities will be a force
roof-top installations within 4 years. Continued cost to promote funding for PV in a market dominated by
reductions and a trend towards smaller systems is the deregulation of utility activities. Public support and
expected. familiarity with PV is well established.

DEU The existing German 100 000 Roofs Solar Power The large number of green power utilities, investors
Programme in combination with the Renewable and other professional institutions in the German
Energy Law has proved an extremely successful PV market has lead to a high share of large (>1 MW) power
market instrument. With high demand, the 350 MW plants in operation. High levels of market participants are
limit on the programme has now been lifted to driven by extremely strong consumer demand. Connection
1 000 MW. A new agency, Deutsche Energie Agentur practicalities are routine.
(dena) has been established to promote the export
of renewable technologies.

16
Table 9 - continued

Promotional Initiatives Utility and public perceptions

FIN The launch of the Finnish National Climate Strategy Green electricity products are offered mainly as a way of
includes an Action Plan for Renewable Energy that demonstration environmental credentials. The main public
will provide a significant emphasis on market issues image of PV is for the electrification of summer cottages,
for PV in the next year. although new BIPV projects and a number of school
installations are raising the profile amongst other groups

FRA The adoption of the EU’s Directive on Renewable EDF, the electricity utility, has presented a strategic
Energy by France raises the target for renewable plan defining its strategy and this plan makes sustainable
energy generation to 21 % in 2010 and has development central to its future development. The
increased the profile of renewables in France. authority established to oversee deregulation of the
Subsidies for SME’s may be available under a electricity industry (CRE) will control the operation of the
scheme for the improvement of energy efficiency emerging market, and ensure that new entrants, including
(PNA2E) and the price for purchase of PV electricity green electricity suppliers, have fair access.
has been increased to 0,15 EUR/kWh (mainland)
and 0,30 EUR/kWh for overseas Departments.

GBR Most promotional activities are being undertaken by Policy announcements by senior political figures, backed
private companies. These have been enhanced by by the commencement of support programmes have
the commencement of the field trials and the large helped to raise the profile of all renewable energy
scale demonstration programmes. technologies. Well funded campaigns by private
companies including Solar Century, Intersolar and BP have
brought PV to a wide audience for the first time.

ISR Two new projects are planned by the Israel Electricity The IEC (National Electricity Utility) has started a
Corporation: A 100 MW centralized solar thermal more active involvement in PV, mainly to investigate grid-
power plant and a 30 home solar village. This connection and net metering issues as a result of pressure
latter project is designed to evaluate practical from the public, environmental NGOs and the Ministry of
implementation issues. National Infrastructures.

ITA The Italian Roof-Top programme started in 2001, ENEL (the national electricity utility) have actively
with significant funds being provided to realize participated in overcoming technical and practical
building integrated systems. The first part of the connection issues and has established a renewable energy
programme - directed towards public buildings - has trading company. The Roof-Top programme has sharply
been heavily oversubscribed and additional funds raised the profile of PV in line with increasing environmental
have been provided. The second sub programme awareness.
aimed at individuals and private companies, aims
to deliver 1 800 installations by the end of 2002

JPN A new “Support Programme to Arrest Global Net metering has been a function of utility operation
Warming” was launched in 2001 to complement the in Japan since 1992, and grid connection is routine.
many other programmes that continue in Japan. Utilities are generally supporters of PV, with over 5,6 MW
This scheme aims to support and promote the installed as of the end of March 2001 on their own facilities.
demonstration of organizational investments in new Public perception and acceptance of PV’s role is strong.
energy and energy efficient facilities.

KOR No new promotional activities were started during KEPCO, the monopoly utility company under restructuring,
2001, but low interest rates are available for has maintained its interest in PV, particularly related to
PV as part of a wider energy programme. the electrification of remote island communities. A recent
long term strategy for energy includes PV and wind in the
medium to long term.

17
 Table 9 - continued

Promotional Initiatives Utility and public perceptions

MEX The majority of activities are directed at providing Utilities have only become involved with grid-connection
electricity to the 5 % of Mexicans living in villages of PV in areas where roof-top systems have been used to
without grid connections. These projects meet reduce peak electrical demand in high summer.
poverty alleviation and agricultural development
aims with minimum costs and environmental
impacts.

NLD PV became part of the Energy Premium Regulation Utilities are currently involved in many grid-connected
(EPR) from January 2001, and this has stimulated PV projects and the practicalities of connection are routine.
a large new market segment in PV on existing as Research has commenced on the effect that the high level
well as new build dwellings. However, PV inclusion in of embedded PV generation in some areas may have on
this programme has meant the end of the dedicated grid control. General knowledge of PV amongst the general
innovation PV programme PV NOZ - PV RD&D. The public continues to increase steeply, with over half of those
replacement programme concentrated on total with domestic PV installed, already planning an expansion.
of renewable energy generation, which made it
difficult for PV to be competitive against other,
larger scale, renewable energy generation options.

NOR There are no specific new initiatives to report. The key market for PV in Norway, the electrification
of remote dwellings and holiday cottages, is beginning
to stagnate, indicating a wide acceptance and
familiarization with PV applications. Whilst there are
a few grid connected demonstration projects, the utility
and policy perception is that the country’s other significant
energy resources (natural gas, hydro, wind, & biomass)
will dominate long term energy planning.

SWE There continue to be no promotional activities or Whilst the utilities have sponsored some demonstration
subsidies available for PV, unlike those available for projects and other activities, the general view is
other renewable energy sources such as biomass that PV is not a technology suitable for Swedish climatic
or wind. However, as the technology is seen as and market conditions. However, public perceptions
pre-commercial, a development of significant size reinforce the widely held view that PV will play a major role
would be a candidate for demonstration funds. in power generation in the medium to long term.

USA The Sacramento Municipal Utility District (SMUD) The energy crisis in 2000 in California continues
Pioneer programme has moved into Phase II, to have repercussions throughout the USA. Whilst
where subsidized grid-connected systems are sold these problems were a function of a failed deregulation of
to customers. California’s Emerging Renewables the industry, along with increased world tension,
Buydown Programme has stimulated 2,5 MW of PV they have heightened the general concern as to
by capital subsidy of up to 50 % of the installed energy security, partly to the benefit of renewable
system costs. energy but also to that of the oil, coal and nuclear
industries.

18
 currently underway, throughout many IEA countries
4.2 Indirect policy issues and their effect on according to many different models. The impact on PV
the PV market is uncertain and varies widely. The increase in green
There are two key issues with an indirect, but power schemes and net metering is one outcome,
important, influence on the PV market: namely, the as many utilities are expanding customer services and
Kyoto Protocol and market reform of the electricity choice in the face of increased competition. Reform
industry. has also opened up access to the grid. Accompanied
by simplified connection procedures and requirements,
As a consequence of the international Framework this has permitted a dramatic growth in all types
Convention on Climate Change and the Kyoto of distributed generation. However, market-led
Protocol, countries such as Denmark, Germany, schemes promote the cheapest option and so do not
Sweden and the UK have introduced taxes on forms of necessarily lead to more PV installations. For example,
electricity generation that contribute to CO2 emissions. in Australia, the value of Renewable Energy Certificates
However, these taxes are too small to noticeably affect traded to meet that country’s MRET obligations is less
the economics of PV and in the USA some analysts than 5 % of the current typical cost (per MWh) of
have calculated that PV credits would be less than PV generated electricity. In the UK an obligation on
0,01 USD per kWh if there were serious efforts to credit suppliers to obtain a percentage of their supply
PV for mitigation of CO2. In some countries (examples from renewable sources will replace existing
are Denmark and the UK) the money raised from these guaranteed (NFFO) prices for renewable electricity.
‘carbon taxes’ is used as an additional source of funds Electricity suppliers will select the cheapest renewable
for the national renewable energy programme. technologies available. Also, the primary aim of
liberalisation in the electricity supply industry is to drive
Perhaps more significantly, the Kyoto Protocol has down costs to the consumer. Thus, as electricity
stimulated a reappraisal of renewable energy policy prices fall, the price differential separating PV from
and the setting of national targets for PV deployment. conventional electricity generation may increase in the
For example, in Japan a law concerning ‘Promotion near term.
Measures to Arrest Global Warming’ was passed
and in Australia a range of new renewable 4.3 Standards and codes
energy programmes, including mandated purchase The importance of standards and codes in promoting
of renewable energy by electricity retailers, have and enabling the continued development of markets
been introduced as part of the national Greenhouse for PV systems has long been recognized. In
Strategy. Germany, Finland, France, Italy, Japan, and 1981, the International Electrotechnical Commission
the Netherlands have all set targets for increasing (IEC www.iec.ch) established a Technical Committee
PV deployment dramatically. In addition, the European (TC82) to prepare international performance and safety
Commission’s Directive on renewable energy support Standards for PV. The IEC TC82 has published
includes detailed targets, which will influence PV 26 international Standards. There are 21 countries
deployment in the member countries. participating in reviewing the work of TC82, as well as
11 countries that have observer status. Currently,
Whilst the USA will not participate in the Kyoto IEC standards development under TC82 includes six
Protocol as it is considered likely to harm the USA’s active working groups: glossary, modules, systems,
economic growth potential, the USA accepts the need balance-of-system components, concentrators, and
for action on excessive global warming. In addition, the certification.
issue of security of energy supply has been revisited
in the USA and measures to support renewables, The range of the TC82’s work is wide. Recently
including PV, are likely to be a feature of a future energy approved new work includes “Safety Guidelines for
policy that will also revitalize the domestic oil, coal and grid-connected PV systems mounted on buildings –
nuclear industries. IEC 62234”, “Performance testing and energy rating of
terrestrial PV systems – IEC 61853”, “Electrical Safety
As noted in the previous section, reform of the of Static inverters and charge controllers for use
electricity supply industry has been achieved, or is in PV power systems – IEC 62109”, and “Testing

19
 procedure – Islanding prevention measures for power participating in the IEA Photovoltaic Power Systems
conditioners used in grid-connected PV power Programme and although this survey does not capture
systems – IEC 62116”. the whole PV market it does provide an indication of
global trends with the reporting countries accounting
Much of the drafting is undertaken in conjunction for over three quarters of world production capacity.
with the participation of five five recognized safety
testing organisations in the USA (UL), Canada (CSA), • The market for PV power applications continues to
Netherlands (KEMA), Germany (TUV) and Japan expand: between 2000 and 2001 the total installed
(JET). A joint co-ordinating group between TC82 capacity in the reporting countries grew by 35 %,
photovoltaic, TC21 (batteries) and TC88 (wind energy) reaching 982 MW. Of the 257 MW installed during
2001, 79 % was installed in Japan and Germany
has been established to revise “Specifications for
alone and care must be taken when analysing
the use of renewable energies in rural decentralized
results to recognize this bias.
electrification” prepared by the French National
committee (IEC 62257). • Between 1992 and 2001, the proportion of grid-
connected PV capacity increased from 29 % to
In 1997, the Global Approval Programme (PV GAP 68 % of the total, up from 62 % in 2000.
www.pvgap.org) set up parallel activities focusing This is mainly due to large scale, government or
primarily on quality issues for stand-alone systems in utility supported programmes, especially in Japan,
developing countries. PV GAP differs significantly from Germany and the USA, which focus on PV
the IEC in that it is driven by reliability and quality in the urban or suburban environment. Off-grid
concerns of donor programmes and the World applications account for over 90 % of the total
installed capacity in Canada, Finland, France, Israel,
Bank. It aims to issue a ‘Quality Seal’ to approved
Mexico, Norway and Sweden.
companies to ensure consistent reliability of PV
systems. Currently PV GAP has issued eight ‘PV • The public perception of PV and the contribution it
Recommended Specifications’ dealing with practical can make to sustainability objectives has become
design details, installation guidelines and testing increasingly recognized during the year. High profile
procedures. projects in Europe (particularly in Germany and the
Netherlands) and Australia have made every day
familiarity with PV a possibility. The installation of
5 Summary of trends demonstration PV systems in educational facilities is
a common theme with at least half of the reporting
Whilst there is great diversity between the countries

Table 10 - Installed PV power and module production in the reporting countries

Year Cumulative installed power and percentage increase

Power Module
installed production
Off-grid Grid-connected Total during year during year
MW % MW % MW % MW MW

1992 78 31 110
1993 95 21 42 32 136 24 26 52
1994 112 19 51 24 164 20 28
1995 132 18 66 29 199 21 35 56
1996 158 19 87 32 245 23 46
1997 187 19 127 46 314 28 69 100
1998 216 15 180 42 396 26 82 126
1999 244 13 276 54 520 31 124 169
2000 277 14 449 63 726 40 206 238
2001 313 13 669 49 982 35 257 319

20
 countries promoting schemes in this area. In the increase in 2001. A number of other technology
USA, security of supply issues have raised political types are in production at a pilot scale, and the first
interest in all domestic energy supplies, including PV. large scale projects using these technologies have
been commissioned for evaluation.
• Whilst the trends in the total national budgets for
R & D, demonstration and market stimulation • System prices have regained their general
measures are not reported this year, a continuing downward trend, which averages at around 4 % per
trend is the increasing proportion of the budget annum. This follows the reporting of slight increases
spent on market initiatives, which now tend to in prices in 2000, probably as a result of sudden
dominate government spending indicating a shift high demand for components in particular target
towards large scale implementation. sectors following the introduction of a subsidy or
support scheme. Grid-connected building integrated
• Between 1993 and 2001, annual module production systems of between 1 – 3 kW typically cost between
rose more than six-fold - from 52 MW to 319 MW. 6 and 12 USD per watt to install although prices
Currently 49 % of cell production and 57 % of below 5 USD per watt were reported in Denmark,
module production in the reporting countries is Germany, the Netherlands, and the USA.
centred on Japan. Most companies report that they
are planning to enlarge existing production lines. • In general electricity utilities are increasingly
Although production appears to remain well below supportive of PV, many now offer net metering or
capacity (at 60 %), it is believed that this reflects the preferential tariffs for PV and are actively involved
rapid expansion of the industry leading, for example, in project development. Whilst market reform in the
to problems with immature supply chains. electricity industry continues to have an impact on
PV deployment by decreasing wholesale electricity
• The vast majority of modules produced are still prices, it has opened opportunities for utilities to
crystalline silicon but production of thin film offer competitive niche products and to provide
amorphous silicon products have seen a 59 % a framework for industry regulators to formulate
sustainability and social obligations.
IEA-PVPS Task 1
Participants and National Survey Report Assistants

Australia Greg Watt, Australian PVPS Consortium; Muriel Watt, University of NSW
Austria R. Bründlinger, H. Fechner, M. Heidenreich, Arsenal Research
Canada Gordon Howell, representing the Canadian Solar Industries Association;
L. Dignard-Bailey and S.Martel, Natural Resources Canada
Denmark Peter Ahm, PA Energy A/S; Bent Sørensen, Roskilde University; Toben
Esbensen, Esbensen Consultant Engineers; Ivan Katic, SolarEnergyCenter
Finland Leena Grandell, Motiva Oy
France André Claverie, ADEME
Germany Peter Sprau and Ingrid Weiß, WIP
Israel Yona Siderer and Roxana Dann, Ben-Gurion National Solar Energy Centre
Italy Salvatore Guastella, CESI-ENEL; Salvatore Castello, Anna De Lillo, ENEA
Japan Kiyoshi Shino, NEDO; Osamu Ikki, Resources Total System Co.
Korea Kyung-Hoon Yoon, KIER
Mexico Jaime Agredano Diaz, Electrical Research Institute
Netherlands Job Swens, NOVEM; Astrid van Beck, Mattijs Maris and Jan Roersen, BECO
Norway Bruno Ceccaroli, SCATEC
Sweden Olle Lundberg And Lars Stolt, Ångström Solar Center
Switzerland Pius Hüsser, Nova Energie; Alan Hawkins, A. C. Hawkins Consulting & Services
United Kingdom Paul Cowley, IT Power
United States Of America Charles Linderman, Edison Electric Institute; Ward Bower, Sandia National
Laboratories; Paul Maycock, PV Energy Systems

21
 Exchange rates

Table 11 below lists the participating countries, corresponding ISO country and currency codes, and the exchange
rates used to convert national currencies. Exchange rates represent the annual average of daily rates.

Table 11: exchange rates

Country ISO country code Currency and ISA code Exchange rate
(1USD=)
Australia AUS Dollar (AUD) 1,97
Austria AUT Euro (EUR) 1,17
Canada CAN Dollar (CAD) 1,54
Denmark DNK Krone (DKK) 8,74
Finland FIN Euro (EUR) 1,17
France FRA Euro (EUR) 1,17
Germany DEU Euro (EUR) 1,17
Israel ISR New Israeli Shekel (NIS) 4,20
Italy ITA Euro (EUR) 1,17
Japan JPN Yen (JPY) 124,80
Korea KOR Won (KRW) 1308,00
Mexico MEX Peso (MXP) 9,37
Netherlands NDL Euro (EUR) 1,17
Norway NOR Krone (NOK) 9,33
Portugal PRT Euro (EUR) 1,17
Spain ESP Euro (EUR) 1,17
Sweden SWE Krona (SEK) 10,83
Switzerland CHE Franc (CHF) 1,77
United Kingdom GBR Sterling (GBP) 0,71
United States USA Dollar (USD) 1,00

22
PV technology note
The key components of a photovoltaic power system are Grid connection (inverter and
the photovoltaic cells (interconnected and encapsulated to
form a module), the inverter (especially for grid connected mounting structures)
system), the storage battery and charge controller (for off- In grid connected systems, an inverter is used to convert
grid systems) and the mounting structure. the direct current (D.C.) output of the modules to alternating
current (A.C.) that is then supplied to a building or to the
Cells and modules national grid network. The conversion efficiency of inverters is
At present, the vast majority of photovoltaic cells are made greater than 90 % except at low insolation levels. Inverters
from silicon. In general, cells are classified as either connected directly to the module (as opposed to through a
crystalline (monocrystalline or multicrystalline) or thin battery) incorporate a maximum power point tracker (MPPT),
film. Monocrystalline PV cells are manufactured using a which continuously adjusts the load impedance to provide
single crystal growth method and have commercial efficiencies the maximum power from the system. One inverter can be
between 12 % and 15 %. Multicrystalline modules, usually used for the whole array or separate inverters may be used to
manufactured from a melting and solidification process, are connect each ‘string’ of PV modules. Individual PV modules
becoming increasingly popular as they are less expensive have also been developed with integrated inverters, usually
to produce but are marginally less efficient, with efficiencies referred to as ‘ac modules’.
between 11 % and 14 %. Thin film cells are constructed
by depositing extremely thin layers of photovoltaic materials A wide range of mounting structures have been developed
(typically silicon) onto a low cost backing such as glass, for building integrated systems, including PV facades, roof
stainless steel or plastic. Module efficiencies for thin film profiles, flat roof mountings, integrated glass-glass panels and
products are currently around 7 % but are potentially cheaper ‘PV tiles’.
to manufacture than crystalline cells. The disadvantage of
low conversion efficiency is that larger areas of photovoltaic Off-grid connection (batteries and
array are required. Other thin film materials are polycrystalline charge controller)
silicon, cadmium telluride (CdTe), and copper indium gallium For off-grid systems a storage battery is used to provide
diselenide (CIGS). energy storage. Nearly all batteries used for PV systems are of
the deep discharge lead-acid type. Nickel-cadmium batteries
Further research and development is being carried out to are also suitable and have the advantage that they cannot
improve the efficiency of all the basic types of cells with be overcharged or discharged, but are considerably more
laboratory efficiencies for monocrystalline cells over 25 % and expensive. The lifetime of a battery varies but is typically
for thin film technologies over 13 % being achieved. between 5 and 10 years. A charge controller (or regulator) is
used to maintain the battery at the highest possible state of
Modules are usually mounted in an aluminium frame and charge (SOC) and provide the user with the required quantity of
are typically rated between 10 W and 200 W, but several electricity, while protecting the battery from deep discharge or
manufacturers now offer modules above 200 W. Crystalline overcharging. An inverter may be used in off-grid applications,
silicon modules consist of individual cells connected together if there is the requirement for A.C. electricity.
and encapsulated between a transparent front, usually glass,
and a backing material. Thin film modules are constructed from Further details
single sheets of thin film material and can be encapsulated in
More detailed descriptions of PV technology can be found on
a flexible or fixed module. Most complete systems consist of a
the IEA - PVPS website at: http://www.iea-pvps.org
number of modules connected together to give a higher power
rating.

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 Notes

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