Accelerating CdTe solar panel adoption can make U.S. solar more secure
By Aaron Bates, founder, Toledo Solar
Even before the Inflation Reduction Act of 2022 increased and extended financial incentives for solar panels and awarded an extra 10% investment tax credit for panels made fully in America (40% ITC total), consumer demand was surging for solar power in the United States and globally.
Solar panel installations increased by 40% year-over-year, adding 5.3 GW of residential solar power production to the grid. In many cases, demand outpaced supply as rising energy prices, climate change realities and supply chain disruptions combined to make it especially difficult for people to acquire and install solar panels.
Meanwhile, the cost of rooftop solar prices has dropped by 60% in the past decade, but many homeowners are still priced out, with upfront costs estimated between $15,000 and $25,000 to purchase and install a new solar system.
In other words, as solar becomes increasingly popular and important to green energy production, it faces dual challenges that hinder its adoption: affordability and accessibility. With supply chain challenges and geopolitical uncertainties straining international production capacity, a state-side solution is desperately needed.
The Cadmium Telluride Accelerator Consortium (CTAC), a group of research teams, universities and companies, is working to accelerate the development of domestically manufactured, cheaper, more efficient cadmium telluride (CdTe) solar cells, making American-made solar panels more affordable and accessible for consumers.
CdTe’s impact on green energy
The consortium, funded by the U.S. Dept. of Energy’s Solar Energy Technologies Office, has been focused on CdTe photovoltaics, a type of thin-film solar cell made from a combination of cadmium, tellurium and other materials. CdTe cells offer several advantages over traditional silicon-based solar cells, including lower production costs and higher efficiency at converting sunlight into electricity.
With a theoretical maximum conversion efficiency of over 31%, CdTe solar technology has yet to reach its full potential for growth. CdTe is already a powerful solar PV product, historically powering the utility-scale markets.
However, CdTe products face significant competition from Chinese-made silicon solar panels, a logistical and human rights problem, increasing the need for American-made solar solutions. Chinese solar companies have been connected to forced labor in the Xinjiang region, prompting the U.S. government to ban more than 1,000 shipments of solar energy components following a June law banning imports from the solar manufacturing region.
As a result, demand for American-made CdTe solar is outpacing supply, making it difficult for suppliers to lower costs. CdTe solar panels are an essential part of the energy transition, with most utility-scale projects in the United States powered by CdTe technology. Making CdTe more broadly accessible for consumers is Toledo Solar and CTAC’s principal focus.
Already, the consortium has experienced a growing number of students and faculty working together with the solar industry to accelerate CdTe research, eradicating information silos and leveraging collaboration to facilitate long-term improvements.
Specifically, the consortium aims to enable CdTe cell efficiencies above 24% and module costs below 20¢/W by 2025, and cell efficiencies above 26% and module costs below 15¢/W by 2030.
Enabling American-made solar at scale
Historically, global energy market trends are tied to natural gas prices. The cost of fossil fuels increased sharply this past year, and geopolitical conflict is reminding many people that adversarial energy partners are a bad long-term energy strategy.
Consequently, nearly 70% of homeowners say they are interested in installing solar panels to lower long-term costs and reduce their carbon footprint.
With lower production costs and higher efficiency compared to traditional silicon-based solar cells, CdTe technology has the potential to increase the adoption and use of renewable energy sources. What’s more, CdTe has the lowest carbon footprint in the solar industry, and U.S.-based production facilities help mitigate ethical or supply chain concerns plaguing the industry.
Solar panel demand is expected to increase for the next several decades. CdTe development alone won’t make solar power a success. However, it’s a foundational product with long-term implications for countries striving to meet climate targets, communities investing in more sustainable energy solutions and homeowners looking to lower costs.
Simply put, more affordable and cleaner energy from ethical products with long-term benefits like recyclability that can support solar adoption at scale are in high demand. CTAC is hastening accessibility and affordability, leveraging the power of public/private partnership to power the green energy transition.