Natural sources of energy such as oil, coal, and natural gas are being milked dry, forcing authorities to explore alternate energy sources.

Adverse climatic effects due to the emission of greenhouse gases have further catalyzed the shift to alternate sources such as solar, wind, nuclear, ethanol, and fuel cells. These energies have outscored natural energy resources by being cleaner, more economical, and easily replenished.

Of all alternate sources, solar energy is the most feasible to develop on remote property and is also flexible enough to meet changing requirements. "There are clear cost advantages to installing solar panels compared to having transmission lines, particularly in areas that are not easily accessible," says the analyst of this research service.

"Moreover, solar cells are easier to manage and maintain than other sources such as wind or nuclear." Governments have also stepped in to avert the looming energy crisis by implementing policies such as the Renewable Portfolio Standard (RPS), which mandates electricity retailers to draw a fraction of their power from renewable energy sources such as solar. Governments have supplemented these stringent laws with several tax incentives and tax breaks for solar power generation.

All these moves are expected to encourage investments in solar power plants and cell manufacturing equipment.

Rising Costs of Production to be Tackled by Innovative Technologies
Equipment vendors have been working on improving efficiencies and increasing handling capacities; however, their efforts are offset by solar energy's high Cost/W-peak compared to competing natural energy sources. The shortage of raw materials is mainly responsible for the increased costs of production.

"Polysilicon prices are as high as $200 per kilogram since silicon, which forms the base substrate for most solar modules, is currently experiencing heavy shortage," notes the analyst.

"The dearth of raw materials is preventing many manufacturing plants from operating at 100 percent capacity, driving up the prices of solar modules and hence, deterring potential investors." Cyclically, the dwindling end-user demand has compelled manufacturers to slow down production of solar modules and this, in turn, is likely to result in sluggish sales of new equipment.

Scientists and solar cell manufacturing equipment companies have been relentlessly striving to develop advanced technologies in thin film substrates that offer higher efficiencies. While the generation of 1 W of power currently costs approximately $1.75 to $5, thin film substrates will help bring down the prices to a more acceptable $1.3/W by 2012.

This technology's lower requirement of silicon and substantial energy savings are likely to give a boost to new equipment sales. "The North American new equipment sales reflect the popularity of thin film technology over traditional crystalline silicon," observes the analyst. "With increasing efficiencies and new technologies in the developmental stage, the potential for solar energy appears bullish."

This Frost and Sullivan research service titled Solar Cell Manufacturing Equipment Markets provides in-depth information into solar cell production and capital equipment market in the North American region with complete analysis of key market drivers and restraints. In this research, Frost and Sullivan's expert analysts thoroughly examine the following technologies: screen printing, diffusion, deposition, and etching.

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