Radically varying advancements result in solar panels becoming significantly more affordable
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A groundbreaking study published in PLOS ONE has revealed that the dramatic cost reduction of solar panels since the 1970s can be attributed to innovations originating in diverse fields such as semiconductor fabrication, metallurgy, glass manufacturing, oil and gas drilling, construction processes, and legal domains.
The research, led by a team including Jessika Trancik, Goksin Kavlak, Magdalena Klemun, Ajinkya Kamat, Brittany Smith, and Robert Margolis, found that these advances improved both photovoltaic (PV) cell manufacturing and balance-of-system (BOS) components, enabling more efficient, cheaper production and installation of solar technology.
Semiconductor fabrication improvements enabled mass production of high-quality silicon wafers, the core of most solar cells, reducing material and processing costs. Advances in alternative semiconductor materials like perovskites and thin-film technologies also contributed by offering new, less energy-intensive manufacturing options.
Metallurgy innovations improved metal contacts and packaging of solar cells, increasing durability and reducing material costs. This ensured cells could last longer and operate more efficiently with less expensive components.
Glass manufacturing advances provided durable, highly transparent glass that protects solar cells without blocking sunlight, allowing cheaper panel assembly and improved reliability.
Oil and gas drilling technologies influenced manufacturing by developing precision equipment and processes that were adapted to scale solar panel production facilities and infrastructure efficiently.
Construction process innovations streamlined solar panel installation, reducing labor and permitting costs crucial to overall system price reductions. Methods adapted from other building industries accelerated deployment.
Legal and policy developments created frameworks for intellectual property, standards, and incentives that encouraged R&D investment and domestic manufacturing, helping commercialize technologies rapidly and reduce supply chain risks.
Together, this diverse integration of technological progress across multiple industrial domains formed a complex knowledge network that drove solar panel prices down by over 99% since the 1970s, facilitating global scale renewable energy adoption.
The study separates PV module costs from balance-of-system (BOS) costs, which cover things like mounting systems, inverters, and wiring. BOS costs depend more on soft technologies, nonphysical elements such as permitting procedures. Many BOS innovations were developed by city governments, U.S. states, or professional associations.
The researchers identified 81 unique innovations that affected PV system costs since 1970, from improvements in antireflective coated glass to the implementation of fully online permitting interfaces. One significant innovation, wire sawing, a technique introduced in the 1980s, led to an overall PV system cost decrease of $5 per watt by reducing silicon losses and increasing throughput during fabrication.
The analysis reveals the role greater computing power could play in reducing BOS costs through advances like automated engineering review systems and remote site assessment software. The researchers plan to apply this methodology to a wide range of technologies, including other renewable energy systems.
The findings of this study could help renewable energy companies make more effective R&D investment decisions and aid policymakers in identifying areas for growth. The research is funded, in part, by the U.S. Department of Energy Solar Energies Technology Office.
