Photovoltaics

Present situation worldwide and in Switzerland

Photovoltaics (PV) is the direct conversion of light into electricity using semiconductors, solar modules and solar cells as well as electric components such as maximum power point trackers and inverters. PV also includes other aspects such as installation (assembly systems and building integration), areas of application (stand-alone or grid-connected systems, mobility), planning, monitoring, maintenance, and forecast. In 2017, 98 gigawatt (GW) of new PV peak power were installed worldwide. R&D and mass production are turning PV into the most cost-effective source of electricity. Large-scale systems are currently generating electricity at less than 4 euro cents per kWh, i.e. more cheaply than any other new power plant (including coal). Smaller-scale systems generate electricity at typical end user rates of 8 to 30 cents/kWh or even less. PV has the potential to become the most important source of electricity in the world. Combined with hydropower and wind power, at times with a high-voltage direct current transmission grid, with short and long-term storage options such as batteries, heat, water, power-to-gas as well as with demand-side management, it can become an effective part of the energy system.

Taking serious action to fight climate change would require a yearly 600 to 1000 GW of new PV installations worldwide, i.e. a multiple of current installation rates. The solar era is thus only just beginning. More widespread use of PV calls for a further 20-40% decrease in component costs as well as a significant increase in efficiency. Efficiency currently stands at 17.5% for average modules using crystalline silicon cells, which cover 95% of the market, and should be improved to reach 22-24% over the next ten years. So-called multi-junction cells combining semiconductors made of different materials should enable module efficiencies of 25-30%. With greatly extended lifespans well in excess of 25 years as well as customer- specific and local manufacturing, PV is likely to play an increasing role in the building sector. PV applications in the field of mobility, e.g. on car roofs, are also expanding. All these improvements will make PV even more inexpensive and create more options for power management, justifying efforts to further improve the technology.

Implications for Switzerland

In Switzerland, 2 GW of installed PV cover 3% of yearly power requirements (estimate as of mid-2018). A slight increase in installation rates (from 250-300 MW/a in recent years to 400-450 MW/a) would make it possible to achieve an annual production of 12 TWh by 2040, meeting minimum requirements for the contribution of PV to the Swiss Energy Strategy 2050 (20% of electricity). Yet this is only a fraction of photovoltaics’ technical potential in Switzerland. The country numbers many research institutes and businesses working along the PV value chain, and many PV systems throughout the world contain components produced in Switzerland. Both Switzerland’s research institutes and high-tech PV sector hold leading technological positions. Major pressure exerted by the Chinese industry means that Swiss firms must innovate on a constant basis in order to maintain their market share, and have to focus on developing products and services displaying higher added value. These include special stand-alone systems, building- integrated PV products, measurement solutions, software and mobility applications to capture niche markets in Switzerland and in Europe.