Q & A with Scott Sklar

How did the silicon shortage situation catch so many by surprise?

Q: Dear Scott Sklar,

I am having a hard time understanding how this so called "shortage" of raw materials used in the production of photovoltaic cells, manifested itself in the PV industry so quickly and with very little warning. It would almost seem suspicious of a marketing ploy to increase investor returns. For years, all I read was how PV module prices were getting better (which the prices stayed relatively the same, it was the technologies in production that produced better quality PV modules and longer warranties that got better) now in the course of one year, 2005, there is a "shortage" of raw materials and PV module prices are going through the roof. Can you shed some light on this for me?
Sincerely, Thomas S, Castalia, NC


Thomas,

A: I appreciate the dismay that constrictions in the silicon market has driven up prices of photovoltaics and delayed supplies, but it was no surprise to anyone tied to the photovoltaics industry. The issue was raised and addressed by US manufacturers when I was still running the Solar Energy industries Association in 2000, and in 2001, the National Institute of Science and Technology (NIST) announced an award to a Dow Corning team: Develop industrial refining processes to produce low-cost, high-purity silicon feedstock in virtually unlimite