Building Applied Photovoltaics market growing due to Feed-in-Tariff

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Feed-in-Tariff (FIT) rates implemented across various regions, as well as the supportive government subsidy schemes, will spur the demand for Building Applied Photovoltaics (BAPV) products in the next five years, says a report from Research and Markets.

BAPV, an advanced PV technology retrofitted on building structures primarily during the construction stage, is environment friendly and enables energy generation at lower cost than conventional power generating sources.

First Solar, Ascent Solar Technologies, Pythagoras Solar, Sapa Solar, and Centrosolar are expected to dominate the BAPV market. These companies accounted for over 40 percent of the global market share in terms of revenue in 2012.

The primary raw materials utilized in manufacturing BAPV systems comprise amorphous silicon (a-Si), cadmium telluride (CdTe), and copper indium gallium selenide (CIGS).

BAPV products commonly include rooftop and facades. They help achieve zero energy building policy.

The growing need for reducing carbon footprint and bringing a paradigm shift in electricity generation from conventional sources to renewable energy sources are some of the factors driving the BAPV market globally.

Building Applied Photovoltaics (BAPV)
Image source: Energydesignresources.com

High initial cost is one of the key factors confining growth of the BAPV market. However, impending government incentive schemes, influx of financial incentives from various associations, and plummeting prices have aided in overshadowing the challenge.

Due to high efficiency and lower costs as compared to alternate renewable technologies, first-generation technologies such as C-Si technology are experiencing major demand.

Silicon forms one of the primary raw materials utilized in manufacturing C-Si BAPV modules. Evolution of second- and third-generation BAPV technologies coupled with abundant availability of silicon has led to a significant drop in C-Si BAPV module prices.

Lower raw material costs makes C-Si BAPV modules less expensive and hence demand for these products is expected to surge in the next few years, the report said. Second-generation technologies demonstrate higher efficiencies as compared to first-generation technologies.

Amount of flexibility and ease of integration offered by thin film technology is likely to attract more consumers, hence driving growth of the thin film technology segment. Third-generation technologies such as OPV and DSC are still in the development phase.

The BAPV market can be categorized as commercial, residential, and industrial. New norms and regulations regarding the use of renewable energy and subsidies over solar energy are together driving growth of the commercial end-use segment in the BAPV market.

Laws such as Renewable Energy Law 2006 in China are driving the growth of renewable energy in the commercial sector in that region, the report said.

Rajani Baburajan

editor@greentechlead.com

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