Thin Film Solar Cell Market Trends

Growth Drivers

• Dominance of CIGS technology and its contribution to CO2 reduction: Among thin-film solar cell alternatives, CIGS is one of the most advanced and efficient. The CIGS-based PV modules IGS (Cu(In,Ga)(Se,S)2) absorbers are very effective in converting light directly into electricity. CIGS is well positioned in PV technologies with record efficiencies for production size modules of 16.5% and small cells of 21.7%. CIGS is anticipated to be used with suitable wide bandgap absorbers as bottom cells in tandem devices that offer efficiency beyond 30%. This demonstrates the potential of using CIGS PV technology in the overall solar cell industry and its future prospects are being explored for further improvements.
  
  The regional markets are highly competitive and are striving to position CIGS in the building-integrated photovoltaics (BIPV). Europe-based OEMs or production equipment suppliers have peerless expertise in key production processes and CIGS tooling. Many are currently distributing and profiting from next-generation CIGS manufacturing processes for the treatment and deposition of semiconductor stacks, which exhibit promise in cutting down capex and opex costs in the future. Thin film PV, in terms of carbon footprint, has a clear advantage over commoditized mono crystalline silicon (c-Si). The former has a carbon footprint of 12-20 g CO2 equivalent per kilowatt hour, while the latter has a carbon footprint of 50-60 g CO2 equivalent per kilowatt hour of electricity.

• Ongoing investments in Cadmium Telluride thin film solar cells: Cadmium Telluride or CdTe solar cells can achieve high conversion efficiencies and have high absorption coefficients. CdTe cells are affordable and are being widely deployed in utility-scale solar installations. Investments in expanding production capabilities, leading to international trade. The U.S. Manufacturing of Advanced Cadmium Telluride Photovoltaics (US-MAC) Consortium launched in 2029 has accelerated investments and innovations in CdTe by leveraging R&D on advanced technologies. US-MAC has enabled the 40% supply of utility-scale PV to the U.S. market and 5% of the world market. Also, it successfully competes with imported silicon and has driven U.S.-based manufacturing.
  
  In August 2022, the U.S. Department of Energy (DOE) launched CdTe Accelerator Consortium (CTAC) to develop CdTe technologies by increasing the efficacy of the thin-film solar cells and lowering costs. The CTAC is projected to achieve cell efficiencies above 24% by 2025 and 26% by 2030 while reducing the per-watt manufacturing cost. A funding of USD 17 million has been provided by the DOE for the consortium with the aim of trimming solar energy costs by 60% in the next 10 years.
  
  With government initiatives, installing solar cells creates a higher return on investment. These initiatives reduce the payback period and boost the long-term savings on electricity bills, increasing the financial attraction of solar energy for both consumers and businesses. The U.S. Department of Energy (DOE) supports F&D focused on overcoming the present technological barriers for CIGS solar cells. In 2024 DOE announced Solar Energy Supply Chain Incubator funding of USD 38 million for R&D projects. In addition, governments frequently provide tax breaks or refunds as financial incentives or subsidies to reduce solar cell installation costs. These incentives lower the initial cost, making them more accessible to individuals.

Challenges

• High initial cost: It can be costly to buy and install thin film solar cells, especially for small-scale and residential users. Because of this upfront expense, which includes the cost of solar cells, mounting systems, wiring, and installation labor, businesses and individuals may not consider solar energy. Using solar energy could save electricity bills over the long term, even though it might end up being more economical in the end. This could potentially extend the time it takes for the initial investment to pay off.

• Strong competition: The market faces several challenges, such as intense competition and a constantly shifting regulatory landscape. The rapid advancement of technology is a significant global industry trend that may create challenges for organizations to influence. These elements may create severe challenges for companies operating in this landscape segment for the projected period, hence reducing their thin film solar cell market share.