As the world has become more interested in global warming and alternative energy, solar power has been one of the stars. While solar energy offers many promises, it has been generally inefficient and costly to use, and storing solar energy has also been a big obstacle. The stimulus bill President Obama signed on Tuesday includes more than $42 billion in energy-related investments. One of the most exciting renewable energies that will be pursued more in depth with the funding is solar energy. In October, Popular Mechanics published an article titled “Inside Solar Power’s Top 5 Next Game-Changing Technologies” by Alex Hutchinson, which outlined some innovative products in the solar industry and listed some true players in the market that we believe investors interested in alternative energy will find very inspiring.
The article notes that SunPower Corporation (SPRWA) was chosen by the Department of Energy (DOE) to put a 205-kilowatt solar installation on the roof of its headquarters in D.C. SunPower has developed back-contact, silicon photovoltaic (PV) cells with an efficiency of 23.4 %, a record for large-scale, mass-produced cells. What makes these PV cells so special is their design: the electrical contacts are on the back of the cell, allowing the front more exposure to the sun. On the momentum of that big project, SunPower recently agreed to build a 250-megawatt solar ranch in California, which is expected to begin delivering power in 2010. A project of this size is not necessary for an individual consumer, whereas a few PV panels on the rooftop of his/her home would do the trick. However, a problem arises here in that these panels produce DC (direct current) power, when the average household appliance requires AC (alternating current) power. Most DC to AC converters lose power in the process and are too costly, except for the newest device called the microinverter, which allows these panels to directly output AC power, and each panel’s performance can be wirelessly monitored. This has prompted the DOE and venture capitalists to pump several million dollars into companies like SmartSpark Energy and Enphase Energy, which are pursuing this latest technology.
Concentrating PV panels, which use lenses and mirrors to help concentrate the sun’s light, have also become a popular development, as they increase efficiency and lower costs. Emcore (EMKR), a company who has surpassed past efficiency records, says it has developed cells with up to 45% efficiency utilizing the company’s own concentrating PV ideas.
The cost of silicon has been a significant roadblock for solar power development as its price has increased by 10 times its previous levels. Alternatives to silicon-based solar cells are available but they are less efficient.
