New DOE Report Explores Economic Development Opportunities & PV Industry

24 August 2011

Solar Photovoltaic Economic Development: Building and Growing a Local PV Industry, a report by CH2M Hill, recently published by the Department of Energy’s Energy Efficiency and Renewable Energy Program, is designed as an introductory guide for local economic development offices. The guide focused on evaluating opportunities related to the solar photovoltaic (PV) industry, developing a strategic approach specific to your community, and setting informed recruitment targets related to renewable energy.

The PV industry is expected to experience both short and long term growth. As a result, it provides an opportunity for both job creation (generally stable, long terms jobs for a skilled workforce) and economic development in communities across the country.

The PV industry is generally divided into two sectors: PV products and PV energy generation. Within the PV products sector, the two main technologies are crystalline silicon modules and thin-film technology. The sector is focused in four main industry groups: raw materials, manufacturer of wafer and cells, assembly of components into panels, and products that are integrated into or support panels (e.g. inverters).

The PV energy generation markets exist at the residential, commercial, and utility scale. There are currently several trends, including an increase in models like third party power purchase agreements, more participation by electric utilities, increased integration of services into single contracts, and both diversification and specialization of services within the PV energy generation sector.

Different communities have different opportunities when it comes to the PV market, but most have the opportunity to successfully develop a segment of this market. In order to do so, it is important to develop an understanding of the market segments, evaluate how your community meets the requirements of those different market segments, and create economic development strategies around the market segments that best meet your community’s economic goals and existing strengths.

This report provides guidance for building an understanding of the PV industry sectors and market segments, including metrics, differentiation, and trends within each segment; developing an understanding for the site selection processes for the different segments of the PV industry and the potential economic benefits; evaluating your community’s strengths and weaknesses within each PV market segment; and creating an understanding of the tools and programs that can be used to foster investment and economic development related to the PV industry.

The full report is available here.