Last year, Allen Barnett and colleagues at the University of Delaware, Newark, set a new record with a design that achieved 42.8 per cent energy conversion efficiency. Barnett says 50 per cent efficiency on a commercial scale is now within reach. Such designs, married to modern manufacturing techniques, mean costs are falling fast too (see Diagram).
As a result, in parts of Japan, California and Italy, where the retail price of electricity is among the world's highest, the cost of solar-generated electricity is now close to, and in some cases matches, that of electricity generated from natural gas and nuclear power, says Michael Rogol, a solar industry analyst with Photon Consulting, based in Aachen, Germany. For example, in the US the average price of conventionally generated electricity is around 10 cents per kilowatt-hour. The cost of solar-generated electricity has fallen to roughly double that. This has created a booming market for PV cells - now growing by around 35 per cent annually - and private investors are starting to take a serious interest. The value of stocks in companies whose business focuses primarily on solar power has grown from $40 billion in January 2006 to more than $140 billion today, making solar power the fastest-growing sector in the global marketplace.
“In some places, the cost of solar-generated electricity is close to that of electricity from conventional sources”
George W. Bush has acknowledged this new dawn, setting aside $168 million of federal funds for the Solar America Initiative, a research programme that aims to make the cost of PV technology competitive with other energy technologies in the US by 2015. Rogol thinks Bush's target is achievable. He says the cost of manufacturing PV equipment has fallen to the point where, in some places, PV-generated electricity could already be produced for less than conventional electricity. Manufacture PV cells at $1 per watt of generating capacity and the cost should be competitive everywhere.