The Solar IndustrySolar Energy Market SegmentsThe solar industry is all about one thing: converting energy generated by the sun to a form of

energy people would actually pay for. The most targeted form of energy is obviously

electricity, although producing thermal energy is very useful for several application (did you

shower today?). We will divide the entire solar energy market to the 3 most widely used

technologies: P.V. solar panels,concentrating thermo-solar and solar water heating.

P.V. solar panelsPhotovoltaic solar panels use the photo-electric effect to generate electrical current from

photons – the small particles that carry energy from the sun all the way to earth.

This segment is where most of the R&D currently goes to, for good reasons. First, it is

considered to be the most efficient solution for residential and commercial customers. Second,

solar panels generate electricity, which is (and will be) in ever-growing demand. Third, the

technology used by P.V. companies has been around for many years and was thoroughly

researched.

The P.V. solar panels segment is heavily influenced by two forces driving its supply and

demand dynamics – costs of silicon (on the supply side) and government incentives (on the

demand side). We will write a separate article on the dynamics of supply and demand in

the solar industry, as it has critical impact on the performance of all companies operating in

the P.V. market.

Size of P.V. solar projects vary from small, residential, consumer oriented projects, to larger-

either commercial or even utility scale projects, where thousands of solar panels are installed,

usually in large, open areas.

Companies: First Solar (FSLR) (FSLR 145.91 ↑0.19%), SunPower (SPWRA 16.70 ↓-3.19%), Trina

Solar (TSL 27.08 ↓-1.46%)

Concentrating Thermo-SolarConcentrating thermo-solar plants are composed of a large field of mirror, focusing sunlight

onto a medium which conducts a fluid (usually water). The fluid’s temperature rises, steam is

released, moving a turbine which generate electricity.

Concentrating solar projects are huge in size, usually located in deserts, are very efficient

(close to 50% of the sun’s energy is converted to electricity, as opposed to 10-15% of P.V.

panels). Due to their size, these projects require heavy funding, and are strongly influenced by

the credit markets and incentive programs.

Several companies operating in the concentrating thermo-solar segment are on their way to

find the holy grail of the solar industry – and efficient way to store solar energy (which is not

available 24/7, a major drawback). Solar energy storage technology is a true gamechanger,

and we will keep you up to date on where this technology is heading.

Companies: BrightSource (privately held), Solel (acquired by Siemens (SI 134.94 ↑2.44%))

Solar Water Heaters

The dark horse of the solar industry, solar water heaters are simple tubes, sometimes

enclosed in a glass frame, who’s sole purpose is to heat water running through them. The

heated water is stored in tanks, usually mounted on rooftops, eliminating the need to use

electrical water hearts.

Although the technology is very basic, solar water heating is the most accessible solar energy

solution available today. In several sunny countries, solar water heaters are mandatory in new

buildings. The potential for this market is huge, especially in developing countries, where

reliability and reach of electricity grids are limited.

Most companies operating in these segments are Chinese manufacturers and local, small

system installers. Very little, if any, R&D goes into these systems, despite the fact that in large

numbers, they can make a huge difference in terms of carbon emission.

Companies ProfiledSharp Solar Schott Q-Cells Kyocera BP Solar First Solar AES Akuo Energy Colorado Instruments / SolarWorld Concentrix Cypress Semiconductor / Sunpower Dyesol Limited Evergreen Solar Flisom GE Global Solar Energy Hitachi America Ltd. Hoku Scientific Isofoton Kyocera 

Isofoton Sanyo SolarWorld SunPower Suntech Yingli Green Energy PrimeStar Solar Q-Cells AG Sanyo SatCon Signet Solar Siemens Solaire Direct Solarfun Power Holdings Co, Ltd. Solar Integrated SolarWorld AG Solartech Solon Spectra Watt / Intel Tenesol Urbasolar

LDK Solar Co LTD Mitsubishi Nanosolar