Innovations
As solar is a technology that has become cheap so quickly, more efficient use of it offers much promise, such as by installing solar arrays in existing spaces, including:
- Rooftops: Some retailers in the U.S. are already taking advantage of their solar-ready real estate. Walmart generates up to 30 percent of the energy for its California stores from solar panels on its rooftops. Ikea has installed solar panels at 90 percent of its U.S. outlets.
- Parking lots: Disneyland Paris recently unveiled the first section of its guest parking lot solar canopy, having installed 46,000 solar panels covering 7,000 parking spaces. These will generate 10 GW of electricity per year, or enough to power a town of some 5,000 people, while offering the additional benefit of keeping cars in the shade.
- Farmland: Solar modules can be built in such a way that the soil beneath them can still be used effectively for growing vegetables. A study by the University of Arizona found that these crops responded well to these structures, which can protect against heavy rain and hail, and ensure that less water is used for irrigation as the soil retains moisture longer when partly shaded. Farmers can use the solar energy on their farms, or sell it to the grid.
- On water: Solar panels can be mounted on floating raft-like structures. Singapore has a floating solar farm on a reservoir that produces enough electricity to power 16,000 four-room flats. The panels are cooled by the water, which makes them more efficient and reduces water evaporation, an important advantage at a time when water is becoming ever more precious.
Beyond expanding the applications of solar technology, a game-changing innovation would be solar panels which work at night. The World Economic Forum reports that a team of scientists at Stanford University have developed solar panels which absorb energy from the sun during the day and radiate that stored heat back into the air at night. This creates a difference in temperature between the cooler panels and the warmer air. A thermoelectric generator converts that difference in temperature into electricity.
Presently, at night these solar panels only produce a small fraction of what they can generate during the day, but the technology will likely evolve. Developing it to scale holds the potential to reduce or even eliminate the need for storage.
The solar industry ecosystem
We see several industries with the potential to benefit from the increased importance of solar as an energy source:
- PV panel manufacturers and suppliers: Dominated by Chinese companies, though with some North American firms as well, this sector includes polysilicon and PV wafer producers and panel manufacturers. Some companies in this space are also focusing on storage and the maintenance of solar projects.
- Solar system installers: These companies offer engineering, procurement, construction, or even storage services for solar projects for utilities or residential/commercial markets.
- Solar technology: These companies provide technology for solar panels, such as inverters, which convert the solar panel’s DC (direct current) energy to AC (alternating current) power used in homes, and/or technology that can improve solar cell production yields.
- Infrastructure: Most renewable infrastructure companies hold solar assets alongside other renewable assets such as wind or hydro. Nevertheless, their exposure to solar may be substantial.
Let it shine
Solar appears set to play an increasing role in our energy supply. Its many advantages, including being the lowest-cost technology and emissions-free, make it an attractive candidate, in our view, to help countries decarbonize. The energy crisis today makes this even more of an imperative. Generous incentives in Europe and now also in the U.S. should further underpin solar’s growth.
