If considering entering the PV module manufacturing industry, a number of factors have to be considered. The most important issue is which PV technology to select.

The active photovoltaic material layer in commercial a-Si or CIGS solar modules is in fact only about 0.5μm in thickness, compared to a crystalline silicon wafer thickness of 350μm in traditional PV modules. This remarkably sparing use of materials means that the silicon coating in a-Si or CIGS modules only accounts for about 5% of the PV module cost in comparison to 50% for crystalline silicon modules, a very compelling argument in favor of thin-films.

Table below shows the cost comparison between typical 12% efficient poly-crystalline silicon module on one side and on the other side 6% efficient a-Si module and 8% efficient CIGS modules made by Solar Thin Films, Inc. processes. The cost structure for example 13% efficient mono-crystalline silicon module is about the same as that of a 12% efficient poly-crystalline one.

Note: Calculations are based on a 5 MW annual rate of production.

* Actual selling price will be determined by the competitive marketing conditions.

As can be noted from the table above, the manufacturing costs of a CIGS module of the same efficiency as a poly-crystalline module is less than one-third and the manufacturing costs of a-Si module is approximately one half. Based on this cost consideration, provided other parameters of product quality and product acceptance are identical, there is very little incentive to build further crystalline or poly-crystalline manufacturing capacity.

The quality of crystalline PV modules when properly encapsulated is well established. The lifetime of such modules is expected to be in excess of 25 years (there is no reason why they should not work in excess of 50 years).

At least the same quality and life expectancy apply to thin-film photovoltaic modules. An argument can be made that glass to glass encapsulation of thin-film PV modules is even more durable and impervious to weather-induced degradation than those for the crystalline modules, since the material thickness and step heights for crystalline modules are more difficult to accommodate in the encapsulation process.

In conclusion, with thin-film PV modules at substantially lower costs, it is difficult to justify building further mono-crystalline or poly-crystalline module manufacturing capacity.

See also:

• The PV market place
• The PV market size and growth
• The relative % of the different energy sources in the global energy mix
• Cost evolution of the different PV modules
• Relative percentage of crystalline silicon vs. thin-films in the PV market
• Cost comparison of PV electricity to conventional retail electricity
• The choice among various thin-films