Portable solar power systems: Growing supply chain props up industry

China’s portable solar power systems segment is benefiting heavily from substantial investment in PV cells and related products. The latter is driven by the rapid growth of the worldwide solar power industry, which has registered more than 40 percent CAGR in the past 10 years.

More importantly, it has resulted in a bustling support chain that supplies a range of modules, main controllers, batteries and inverters, enabling most manufacturers to purchase the key components domestically. The country’s output of PV cells in 2008 surpassed 2000MW, accounting for 37 percent of global production.
Makers are also taking advantage of falling costs, specifically of silicon solar cells. The component has dropped by 40 to 50 percent over the past six months and is now about $2 per watt.

Costs are expected to slide further to $1.10 or $1.20 by 4Q09.

Such projections are critical in procurement given that most portable PV power systems from China use silicon cells, which have a power conversion rating of 18 to 19 percent.

The use of thin-film cells, however, is forecast to surpass that of silicon types because of lower production costs, which average $1 to $2 per watt. The former can convert only 4 to 9 percent of energy but are said to work despite low-light environments. Thin-film cells can also be integrated into different surfaces such as windows and clothing.

Global Sources