Silicon shortage .282005.E2.80.932008.29 Growth of photovoltaics

polysilicon prices since 2004. of october 2015, asp polysilicon stands @ $15.30/kg

in 2000s, prices polysilicon, raw material conventional solar cells, low $30 per kilogram , silicon manufacturers had no incentive expand production.

however, there severe silicon shortage in 2005, when governmental programmes caused 75% increase in deployment of solar pv in europe. in addition, demand silicon semiconductor manufacturers growing. since amount of silicon needed semiconductors makes smaller portion of production costs, semiconductor manufacturers able outbid solar companies available silicon in market.

initially, incumbent polysilicon producers slow respond rising demand solar applications, because of painful experience over-investment in past. silicon prices sharply rose $80 per kilogram, , reached as $400/kg long-term contracts , spot prices. in 2007, constraints on silicon became severe solar industry forced idle quarter of cell , module manufacturing capacity—an estimated 777 mw of available production capacity. shortage provided silicon specialists both cash , incentive develop new technologies , several new producers entered market. responses solar industry focused on improvements in recycling of silicon. when potential exhausted, companies have been taking harder @ alternatives conventional siemens process.

as takes 3 years build new polysilicon plant, shortage continued until 2008. prices conventional solar cells remained constant or rose during period of silicon shortage 2005 2008. notably seen shoulder sticks out in swanson s pv-learning curve , feared prolonged shortage delay solar power becoming competitive conventional energy prices without subsidies.

in meantime solar industry lowered number of grams-per-watt reducing wafer thickness , kerf loss, increasing yields in each manufacturing step, reducing module loss, , raising panel efficiency. finally, ramp of polysilicon production alleviated worldwide markets scarcity of silicon in 2009 , subsequently lead overcapacity sharply declining prices in photovoltaic industry following years.