Meeting Global Challenges German-U.S. Innovation Policy: Summary of a Symposium (2012) / Chapter Skim
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Panel X: Policies and Programs to Build Solar Industries
Panel X: Policies and Programs to Build Solar Industries
Pages 154-164
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From page 154... ...
He said he would discuss photovoltaics as a central strategy in climate policy, and look more closely at policy differences in German, China, and the United States. With current crystalline silicon technology, he said, rooftop-scale PV could produce about one-fourth of all German electricity, and about ¼ of all Chinese electricity by 2020, assuming demand continues its current growth.
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From page 155... ...
For large-scale application, he said, overall costs need to be reduced by a factor of two before solar can effectively compete with current electricity prices in Germany. Obviously, however, once the PV penetration is very high, storage facilities must be built to stabilize electricity supply, which brings additional cost increases.
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From page 156... ...
For example, cell producers had been experimenting with the use of selective emitter cells in solar arrays without notable success. Suddenly, two large global equipment suppliers, Gebrüder Schmidt, followed quickly by Centrothem, developed equipment of their own to produce selective emitter cells.
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From page 157... ...
On the other hand, some excess supply creates incentives to reduce costs and helps choose the best technologies." Another challenge, he said, was to apportion public support among three needs: early-stage R&D, where much innovation arises; manufacturing, which is desirable in generating employment and stimulating R&D; and support for demand and "putting panels on the roof." One goal is to allow the private sector to identify the most promising innovative activities. He noted the earlier discussion in favor of supporting battery manufacturers, saying that too much support makes it difficult to design incentives for innovating and selecting the best technologies.
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From page 158... ...
On the technology push side, he said, the United States uses R&D funding for new technologies, R&D tax credits, and manufacturing tax credits. One example is the solar incubator program run by the National Renewable Energy Laboratory
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From page 159... ...
This creates markets for renewable energy credits, or solar renewable energy credits, which in turn stimulates demand. The primary national incentive structure is the investment tax credit (ITC)
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From page 160... ...
This is an important first link of that value chain, he said, but it is not sufficient. "Debt financing and asset financing is what will be required for this industry to expand much more widely than it is today." Of the $44 billion in solar debt financing world-wide in 2010, the United States held only a 9 percent market share.
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From page 161... ...
In conclusion, Dr. Le said, government policies can accelerate clean energy "at speed and at scale." The German FIT had been a very effective tool to help spur the solar industry, and had resulted in global solar leadership on the demand side.
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From page 162... ...
"In the United States now, however, solar represents roughly 2 percent of our electric generation capacity, while in Germany it's about 10 times as much. We are investing in solar thermal technologies, which have inherent storage capabilities, and that will be an important portion of our grid." A questioner asked how a government in an era of fiscal stringency could justify putting public dollars in an industry where capacity is twice as great as demand.
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From page 163... ...
We're not trying to pick winners." At the same time, he said, the DoE follows every energy market, and makes investments in all promising technologies, including crystalline silicon and thin films. He said he was personally optimistic about thin film, "and there are good reasons to be optimistic about some of these new technologies." A questioner asked whether Germany had invested too much money in a technology that was not very efficient in generating electricity and "which seems to be a niche technology at best?
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From page 164... ...
The United States has experimented for years, but now has established the renewable portfolio standard that has spread across the liberalized markets and is demonstrated to be effective. So let's learn from each other and adopt another system which is established, well practiced, and tried out."
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