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Demand by product characteristics: measuring solar cell quality over time

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Abstract

The purpose of this paper is to investigate the impact of innovation quality as a success factor of companies that satisfy demand in government-subsidized science-based markets. This paper focuses on the Photovoltaic market in Germany as a case study. It carries out the analysis in three stages. First, the efficiency of photovoltaic product characteristics is examined using data envelopment analysis (DEA). Second, by means of a metric re-scaling approach, the technical improvement of solar modules offered on the German market is analyzed over time. Next, the results of the second stage are compared to demand growth (evolution of market shares). In conclusion, it can be shown that innovation quality in science-based markets is often an explanation of long-term growth, but occasionally a reduction of performance characteristics meets demand.

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Notes

  1. See the 1991 book for reference only. His work dates back to 1971.

  2. For a review see Grupp (1998).

  3. MWp = megawatts peak installed (electrical power unit).

  4. http://www.epia.org/03DataFigures/barometer/Barometer_2006_full_version.pdf (19 July 2007).

  5. The metric re-scaling approach is equivalent to the formerly known “technometric approach” (Sahal 1985), a term which did not become widely accepted. Nevertheless, under the term “min-max approach” or re-scaling” it is now more widespread in use, e.g. for the Human Development Index of the United Nations.

  6. For a DEA Homepage see http://www.etm.pdx.edu/dea/homedea.html (26 September 2007).

  7. Stiftung Warentest is the leading consumer product test organization in Germany. The test for PV modules was executed in 1999 and 2006 based on the opinion of experts when selecting the modules and implementing weights for the benchmark test. The technical data were measured from physical products. It is assumed that this module selection provides a more or less representative cross section of PV modules which are offered on the German PV market.

  8. Warranty against power degradation: PV module show little degradation over many years of operation. Within the period of warranty, manufacturers provide that the module is still producing 80% or more of its name plate rating.

  9. A solar module’s energy conversion efficiency renders the ratio between power emitted and power irradiated for a solar module based on the module surface.

  10. Tolerance on peak power ensures that output is always at expected levels. This specifies the maximum deviation from the rated output.

  11. Temperature coefficient indicates by how many percent the output of the module decreases with rising (module) temperatures.

  12. Two of five outputs, temperature coefficient and tolerance, have negative signs. A negative sign of the parameter causes problems in DEA Software Application. For this reason these parameters have to be transformed for each PV module in accord with the re-scaling formula: \(TK^\ast =\left| {TK_{\min } } \right|-\left( {\left| {TK_{\rm{Modul}} } \right|-\left| {TK_{\max } } \right|} \right)\mbox{ and }TO^\ast =\left| {TO_{\min } } \right|-\left( {\left| {TO_{\rm{Modul}} } \right|-\left| {TO_{\max } } \right|} \right)\) for temperature coefficient and tolerance respectively.

  13. The amount of power a photovoltaic module will produce at standard test conditions (normally 1,000 W/m2 and 25˚C cell temperature).

  14. Former ASE and Telefunken.

  15. Siemens Solar was bought out by Shell Solar in 2002.

  16. When BP and Amoco merged in 1998, half of Solarex came with the deal. The companies merged completely in 1999, when BP Amoco bought the other half of Solarex from Enron.

  17. Solec was sold to Sanyo in 2000.

  18. It was not possible to find data of Sharp’s solar modules before 1996.

  19. See http://www.photowatt.com.

  20. The data for solar modules from BP Solarare available from 1991 and for Sharp from 1996.

  21. See Haller and Grupp (2007).

  22. http://www.sanyo.co.jp (searched 25 September 2007).

  23. HIT (Heterojunction with Intrinsic Thin-layer) hybrid solar cells are composed of a thin single-crystal silicon wafer surrounded by ultra thin amorphous silicon layers.

  24. Changes are calculated for the time from 1991 to 2006.

  25. Changes are calculated for the time from 1991 to 2003.

  26. In 1994, Solec combined forces with Sanyo Electric, Japan. Both companies share a commitment to excellence and making strides toward improvements in the solar energy industry. Before 1994, we consider only the solar modules from Solec.

  27. Two manufactures Siemens and Solarex were bought out in 2002 and 1999, respectively. That is why the market shares of these companies are excluded in the remainder of this investigation.

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Authors and Affiliations

  1. Institute for Economic Policy Research (IWW), University of Karlsruhe, P.O. Box 6980, 76128, Karlsruhe, Germany

    I. Haller & H. Grupp

  2. Fraunhofer Institute for Systems and Innovation Research (ISI), Karlsruhe, Germany

    H. Grupp

  3. Science and Technology Policy Research (SPRU), University of Sussex, Brighton, UK

    H. Grupp

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  1. I. Haller
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  2. H. Grupp
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Correspondence to I. Haller.

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Haller, I., Grupp, H. Demand by product characteristics: measuring solar cell quality over time. J Evol Econ 19, 487–506 (2009). https://doi.org/10.1007/s00191-009-0140-1

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