2. Solar Thermal and Photovoltaic Collector Manufacturing Activities

This chapter presents national and State-level data on the United States solar thermal collector and photovoltaic module and cell manufacturing industry. The data are reported to the EIA by U.S.-based manufacturers and importers of solar equipment on Forms EIA-63A, "Annual Solar Thermal Collector Manufacturers Survey," and EIA-63B, "Annual Photovoltaic Module/Cell Manufacturers Survey." Historical data for comparison are presented for annual domestic shipments of solar thermal collectors during 1978 through 1997 and for photovoltaic cells and modules during 1982 through 1997 (Table 11).

Since 1978, domestic manufacturers have shipped 227,177 square feet of solar thermal collectors. The total number of domestic shipments in peak kilowatts of photovoltaic cells and modules since 1982 is 114,858 peak kilowatts. Solar collectors are estimated to have a useful life of 20 years. Throughout the chapter, the unit of measure is square feet of collector surface for solar thermal collectors and peak kilowatts for photovoltaic cells and modules.

Collector Type Descriptions

Solar thermal collectors are divided into the categories of low-, medium-, and high-temperature collectors. Low-temperature collectors provide heat up to 110^o Fahrenheit through either metallic or nonmetallic absorbers and are used in applications such as swimming pool heating, and water, space, and process heating. Medium-temperature collectors provide heat greater than 110^o Fahrenheit (usually 140 to 180^o Fahrenheit) through either glazed flat-plate collectors that use air or liquid as the heat transfer medium or concentrator collectors that concentrate the heat of incident insolation to greater than "one sun"--essentially unobstructed, normal sunlight. Evacuated-tube collectors are included in this category. High-temperature collectors are parabolic dish and trough collectors and are used primarily by utilities and nonutility power producers in the generation of electricity for the grid. A high-temperature solar thermal collector operates at temperatures above 180 degrees Fahrenheit.

Table 11. Annual Photovoltaic and Solar Thermal Shipments, 1978-1997

Year	Domestic Shipmentsa
	Photovoltaic Cells and Modules (Peak Kilowatts)	Solar Thermal Collectors (Thousand Square Feet)
1978	—	10,020
1979	—	13,396
1980	—	18,283
1981	—	19,362
1982	6,897	18,166
1983	10,717	16,669
1984	7,759	16,843
1985	4,099	b19,166
1986	3,224	9,136
1987	3,029	7,087
1988	4,318	8,016
1989	5,462	11,021
1990	6,293	11,164
1991	6,035	6,242
1992	5,760	6,770
1993	6,137	6,557
1994	8,363	7,222
1995	11,188	7,136
1996	13,016	7,162
1997	12,561	7,759
Total	114,858	227,177
aTotal shipments minus export shipments. bEstimated data. — = Not available. Sources: 1978-1984: Energy Information Administration, Form EIA-63, "Annual Solar Thermal Collector and Photovoltaic Module Manufacturers Survey." 1985-1997: Energy Information Administration, Form EIA-63A, "Annual Solar Thermal Collector Manufacturers Survey," and Form EIA-63B, "Annual Photovoltaic Module/Cell Manufacturers Survey."

Shipments

Solar thermal collector shipments totaled 8.1 million square feet in 1997, an increase of 7 percent from the 1996 level of 7.6 million square feet (Table 12). Import shipments totaled 2.1 million square feet, while export shipments were 0.4 million square feet in 1997 (Figure 7). Shipments of low-temperature solar thermal collectors increased to 7.5 million square feet in 1997, compared to 6.8 million square feet in 1996 (Table 13). Shipments of medium-temperature collectors decreased 22 percent to 0.61 million square feet in 1997 from 0.79 million square feet in 1996. This is a continuation of a long-term decline in medium-temperature collector production. Shipments of high-temperature collectors decreased to 7,000 square feet in 1997 from 10,000 square feet in 1996.

Origins

U.S. manufacturers in five States--California, New York, New Jersey, Florida, and Hawaii--produced 98 percent of U.S.-manufactured collectors in 1997 (this represents only shipments manufactured in the United States). In 1996, four States--California, Florida, New Jersey, and New York--and Puerto Rico--produced 98 percent (Table 14). California continued to lead the United States with 38 percent of total domestic shipments in 1997, an increase from 33 percent in 1996 (Table 14). New Jersey, Florida, New York, and Hawaii shipped a combined 3.6 million square feet in 1997.










 

Table 12. Annual Shipments of Solar Thermal Collectors, 1987-1997

Year	Number of Companies	Collector Shipments (thousand square feet)a
		Total	Imports	Exports
1987	59	7,269	691	182
1988	51	8,174	814	158
1989	44	11,482	1,233	461
1990	51	11,409	1,562	245
1991	48	6,574	1,543	332
1992	45	7,086	1,650	316
1993	41	6,968	2,039	411
1994	41	7,627	1,815	405
1995	36	7,666	2,037	530
1996	28	7,616	1,930	454
1997	29	8,138	2,102	379

aIncludes imputation of shipment data to account for nonrespondents. Note: Total shipments as reported by respondents include all domestic and export shipments and may include imported collectors that subsequently were shipped to domestic or foreign customers. Source: Energy Information Administration, Form EIA-63A, "Annual Solar Thermal Collector Manufacturers Survey."

Figure 7. Import and Export Shipments of Solar Thermal Collectors, 1987-1997

Notes: Total shipments as reported by respondents include all domestic and export shipments and may include imports that subsequently were shipped to domestic or foreign customers.   Source: Energy Information Administration, Form EIA-63A, "Annual Solar Thermal Collector Manufacturers Survey."

Destinations

Domestic

Nearly half of solar collector volume shipped went to Florida in both 1996 and 1997. Solar thermal collectors were shipped to 41 States, Puerto Rico, and the U.S. Virgin Islands in 1997 (Table 15). The five States that received the largest amounts of total solar thermal collector shipments in 1997 were: Florida (49 percent), California (22 percent), Arizona (6 percent), Hawaii (3 percent), and Oregon (2 percent) (Table 14). All of the collectors manufactured in Puerto Rico remained on the island. The U.S. market for solar thermal collectors continued to be highly concentrated in a few States and Puerto Rico. Factors favorable for solar energy use in these States and Puerto Rico are: (1) good solar insolation;⁽¹³⁾ (2) high electricity costs; (3) solar-promoting incentives, such as tax credits or exemptions; and (4) a demand for low technology solar pool heaters and solar domestic hot water systems.

Export

Exports accounted for 5 percent of total shipments in 1997. A total of 11 companies exported solar thermal collectors in 1997 compared with 19 companies in 1996. Of total 1997 exports, 5 companies exported low-temperature collectors and 10 exported medium-temperature collectors. Regionally, the largest percentage of shipments were to North and South America (40 percent), followed by Europe and the Middle East (37 percent) and Asia (23 percent) (Table 16). Trading countries that received the most export shipments were Canada (22 percent), Taiwan (15 percent), Sweden (12 percent), Germany (8 percent), Korea (7 percent), Austria (6 percent), Guatemala and Belgium (both 4 percent).

Table 15. Shipments of Solar Thermal Collectors by Destination, 1997   (Square Feet) Destination 1997 Destination 1997 Alabama 2,424   Nebraska 63 Alaska 0   Nevada 120,215 Arizona 499,752   New Hampshire 1,350 Arkansas 2,803   New Jersey 73,829 California 1,781,407   New Mexico 7,020 Colorado 35,645   New York 121,389 Connecticut 54,099   North Carolina 8,194 Delaware 0   North Dakota 0 District of Columbia 0   Ohio 58,136 Florida 3,974,505   Oklahoma 5,863 Georgia 79,601   Oregon 145,117 Hawaii 203,939   Pennsylvania 71,332 Idaho 0   Puerto Rico 70,409 Illinois 84,375   Rhode Island 0 Indiana 0   South Carolina 25,617 Iowa 759   South Dakota 0 Kansas 3,785   Tennessee 10,799 Kentucky 2,953   Texas 64,564 Louisiana 928   Utah 0 Maine 25,356   Vermont 10,584 Maryland 8,780   Virgin Islands (U.S.) 9,970 Massachusetts 28,550   Virginia 29,311 Michigan 34,976   Washington 44,788 Minnesota 35,526   West Virginia 84 Mississippi 1,687   Wisconsin 13,951 Missouri 4,448   Wyoming 66 Montana 0      Shipments to United States/Territories 7,758,949 Exports 379,401  Total Shipments 8,138,350 Source: Energy Information Administration, Form EIA-63A, "Annual Solar Thermal Collector Manufacturers Survey."

Table 16. Distribution of U.S. Solar Thermal Collector Exports by Country, 1997 Country Percent of U.S. Exports Asia  Hong Kong 0.9  India 0.1  Japan 0.2  Korea 7.3  Taiwan 14.5   Total 23.0 Europe and Middle East  Austria 6.0  Belgium 4.1  Denmark 1.5  France 0.4  Germany 8.3  Lebanon 1.1  Spain 1.8  Sweden 11.9  Switzerland 1.4  Turkey 0.2   Total 36.7 The Americas  Antigua 0.5  Aruba 0.2  Bahamas 1.1  Belize 0.1  Bermuda 0.1  Bolivia 0.1  Bonaire 0.2  British Virgin Islands 0.4  Canada 21.8  Caribbean 3.4  Chile 1.5  Costa Rica 0.6  Ecuador 0.6  Guatemala 4.0  Honduras 0.7  Jamaica 0.5  Mexico 3.7  St. Martin 0.1  St. Vincent 0.3  Trinidad 0.2   Total 40.1 Total 100.0 Notes: Totals may not equal sum of components due to independent rounding. Source: Energy Information Administration, Form EIA-63A, "Annual Solar Thermal Collector Manufacturer Survey."

Distribution

Table 17. Distribution of Solar Thermal Collector Shipments, 1996 and 1997 Recipient Shipments (thousand square feet) 1996 1997 Wholesale Distributors 4,843 4,446 Retail Distributors 1,655 2,491 Exporters 372 417 Installers 529 585 End Users and Othera 217 199  Total 7,616 8,138

aOther includes minimal shipments not explained on Form EIA-63A. Note: Totals may not equal sum of components due to independent rounding. Source: Energy Information Administration, Form EIA-63A, "Annual Solar Thermal Collector Manufacturers Survey."

Low-temperature collectors dominated the solar thermal industry in 1997, accounting for 92.5 percent of total shipments (Table 18). Medium-temperature collectors accounted for 7.5 percent of total collector shipments in 1997. About 85 percent of these were flat plate collectors. Those that constituted subunits of thermosiphon systems or integral collector storage systems (ICS) represented 0.4 percent of total shipments. High-temperature collectors, shipped primarily for research and demonstration projects, represented about 0.1 percent of total shipments in 1997.  

Figure 8. Solar Thermal Collector Shipments by Type, 1986-1997

Sources: Energy Information Administration, Form EIA-63A, "Annual Solar Thermal Collector Manufacturer's Survey."

Values and Prices

The total value of solar thermal collector shipments was $29 million in 1997, a 3-percent decrease compared with 1996. The average price (in dollars per square foot) of low-temperature collectors decreased to $2.60 in 1997 from $2.67 in 1996, while the average price of ICS and thermosiphon collectors increased to $23.28 in 1997 from $21.63 in 1996. This increase was due primarily to increased material costs. The average price (in dollars per square foot) for flat-plate collectors in 1997 increased to $11.30 from the 1996 level of $8.57 (Figure 9). The value of shipments includes charges for advertising and warranties. Excluded are excise taxes and the cost of freight or transportation for the shipments.

Markets

In 1997, the residential sector was the largest market for solar thermal collectors. Solar thermal collectors shipped to the residential sector totaled 7.4 million square feet, 91 percent of total shipments (Table 19). This market sector primarily involves the use of low-temperature solar collectors for heating swimming pools and medium-temperature collectors for water heating in residential buildings. The second-largest market for solar thermal collectors in 1997 was the commercial sector, which accounted for 9 percent of total shipments.

Figure 9. Average Price of Solar Thermal Collector Shipments by Collector Type, 1995, 1996, 1997

Sources: Energy Information Administration, Form EIA-63A, "Annual Solar Thermal Collector Manufacturer's Survey."

Uses

In 1997, the largest end use for solar thermal collectors shipped was for heating swimming pools, representing 93 percent of the total square feet shipped. Swimming pools generally use low-temperature collectors. A common low-temperature pool-heating solar collector is a black plastic or rubber-like sheet with tubing through which water is circulated. The heat of the sun is transferred directly from the black absorbing material to the water circulating through the tubing to supply heat to the pool. Shipments for pool heating increased 11 percent in 1997 from the level reported in 1996.

The second largest end use in 1997 was for domestic hot water systems, which accounted for 7 percent of the total square feet shipped. Typical solar water-heating systems feature flat-plate collectors or collectors installed in an ICS or thermosiphon system. Unlike pool-heating systems, domestic solar water-heating systems nearly always have a conventional backup (e.g., gas or electric). Shipments in 1997 for hot water systems decreased 22 percent from the 1996 level.

Medium-temperature collectors also were shipped for space heating and for installation into systems that provide both space and water heating, and process heating. Almost all high-temperature parabolic dish and trough collectors were shipped for hot water heating in 1997.

In 1997, 29 companies were active in the solar thermal collector manufacturing industry. This is virtually unchanged from 1996 and interrupts a decade-long decline. However, it is a sizable decrease from prior years (Table 12). Since 1987, 30 manufacturing companies have left the market. Firms leaving the market have been principally those engaged partially in nonsolar-related businesses. This decade long decrease is due in large measure to two factors. First, the 40-percent residential energy tax credit and the 15-percent business energy tax credit expired at the end of 1985. Second, the decline in industry companies intensified with the drop in oil prices in 1986. The reinstatement of the business energy tax credit--at the 15-percent level for 1986, at the 12-percent level for 1987 through 1991, and at the 10-percent level in 1992--plus increasing oil prices after 1986, appear to have had little effect on drawing companies into manufacturing solar thermal collectors.⁽¹⁴⁾

Despite the decrease in firms producing solar collectors, those firms still in business shipped 0.5 million more square feet in 1997 than in 1996 (Table 12). Of the 29 active companies, 3 are planning to introduce new low-temperature collectors, 9 are planning new medium-temperature collectors, and 2 expect to introduce new high-temperature collectors in 1998 (Table 21).

Photovoltaic Module and Cell Description

Photovoltaic (PV) components are divided into three categories by product type: (1) crystalline silicon cells and modules which include single-crystal, cast silicon, and ribbon silicon; (2) thin-film cells and modules made from a number of layers of photosensitive materials such as amorphous silicon; and (3) concentrator cells and modules in which a lens is used to gather and converge sunlight onto the cell or module surface.

Figure 10. Import and Export Shipments of Photovoltaic Cells and Modules, 1988-1997

Sources: Energy Information Administration, Form EIA-63A, "Annual Solar Thermal Collector Manufacturer's Survey."

Distribution

In 1997, PV module and cell shipments totaling 31.4 peak megawatts (68 percent of total shipments) were sent directly to wholesale distributors (Table 27). Installers and end users combined received 2.8 peak megawatts (6 percent of total shipments).

PV cell manufacturers shipped 5.2 peak megawatts (11 percent of total shipments) to other companies that manufacture (assemble) cells into PV modules.

Cell and Module Types

Crystalline silicon cells and modules continued to dominate the PV industry in 1997, accounting for 96 percent of total shipments (Table 28). In particular, single-crystal silicon shipments totaled 30 peak megawatts, an increase of 38 percent compared with corresponding 1996 shipments (Figure 11). Together, cast and ribbon silicon shipments totaled 14.3 peak megawatts in 1997, a 17-percent increase over 1996. From 1996 to 1997, thin-film shipments increased 31 percent (Table 28). However, thin-film shipments represented only 4.1 percent of total shipments in 1997.

Values and Prices

The total value of photovoltaic module and cell shipments was $175 million in 1997, a 34-percent increase over the 1996 value of $131 million (Table 29). The total value includes charges for advertising and warranties, but does not include excise taxes and the cost of freight or transportation for the shipments.

The total value of crystalline silicone (single-crystal, cast, and ribbon) shipments was $164 million in 1997, a 35-percent increase compared with the corresponding 1996 value. The average price of crystalline silicon modules in 1997 was $4.06 per peak watt, an increase of 3 percent from the 1996 price of $3.95 (Table 29).

In 1997, end uses related to water pumping and original equipment manufacturers accounted for 3.8 peak megawatts and 5.2 peak megawatts, respectively, and involved primarily the use of crystalline silicon cells and modules.  

Figure 11. Photovoltaic Cell and Module Shipments by Type, 1994-1997

Sources: Energy Information Administration, Form EIA-63A, "Annual Solar Thermal Collector Manufacturer's Survey."

Sales for consumer goods accounted for 0.3 peak megawatts in 1997. PV cells and modules used for health and medical purposes, such as to power refrigerators, medical equipment, and water purifiers, totaled 1.3 peak megawatts in 1997, a 33-percent increase over the 1996 level. End uses reported as "Other" for 1997 totaled 4.7 peak megawatts.

Destinations

Market Sectors

The industrial sector was the largest market for PV cells and modules in 1997, accounting for 25 percent of total shipments (Table 30). This sector contains much of the nonutility electric generation capacity. The second-largest market sector was the residential sector, which purchased 24 percent of shipments. The commercial sector represented the third-largest market for PV shipments in 1997 with 18 percent. These cells and modules were shipped to provide power for establishments such as office buildings, retail establishments, private hospitals, and schools (publicly owned hospitals and schools are listed under the government sector).

PV cells and modules for the transportation sector, which were used to produce power on boats, in cars, in recreational vehicles, and to power transportation support systems, amounted to 3.6 megawatts. The transportation sector accounted for 8 percent of total shipments in 1997 compared with 11 percent in 1996.

Shipments to the utility sector, where cells and modules were used to produce power at utility-owned systems including central stations, decentralized systems, and experimental applications, amounted to 5.7 peak megawatts in 1997, a 19-percent increase from 1996. Combined with information from the analysis of PV's by end use, it is clear that there is considerable use of PV cells and modules for electricity generation--even grid interactive uses--outside the utility sector.

13. Insolation refers to the amount of solar radiation reaching the earth unobstructed.

14. In an effort to stimulate domestic energy sources, the Energy Policy Act of 1992, Section 1916, extended the 10-percent business tax credits for solar equipment indefinitely, retroactive to June 30, 1992. Investors in or purchasers of qualified solar energy property can take the credit on up to 10 percent of the investment or purchase price and installment amount. Section 1914 established a 1.5-cent per kilowatthour electricity production incentive for "qualifying facilities."