Summary
China is building more solar panel plants, reducing the cost per watt and increasing their market share, and, the rest of the world is going bonkers over a 0.9% increase in efficiency.
Analysis
DSM’s was quick to announce the efficiency increase but failed to mention the cost for the coating and what the percentage of increase would be for the increase in solar panel efficiency! Until one can fully evaluate as to how the cost of the coating affects the overall cost per watt the achievement is nothing more than a successful laboratory test.
As for the affect on DSM’s products it’s too soon to tell. The cost for achieving a minimal increase in efficiency could be too high to justify the change from the existing substrate material. The coating could also affect the process and add more time and product loss.
Solar panel manufacturers can’t afford to spend too much time and money on achieving small increases in efficiency rather than reducing the manufacturing costs of their existing products. Why is it so hard for U S and European businessmen to understand marketing and sales 101? Produce a quality product at an affordable price and they will come. The Japanese learned the lesson with electronics and cars now China is doing it with solar panels, wind turbines and consumer products. And, the U S and European’s are providing the capital and market for them.
Even with the 0.9% increase at no increase in the cost per watt price, it is still too expensive for the average consumer to invest in solar panels. The U S Government and many states are offering incentives but the consumer is still not willing to risk the investment at the current price per watt installed.
So, the bottom line for DSM’s new coating may be dismal at best. Especially since low reflective glass is currently available from many float glass manufacturers. If the increase was in the neighborhood of 2 to 3 % the future would be much clear and brighter for the new coating.
This author consults with leading institutions through GLG
Analyses are solely the work of the authors and have not been edited or endorsed by GLG.
