Opportunities For BIPV Glass

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Opportunities for BIPV Glass NanoMarkets, LC March 2014

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ABOUT NANOMARKETS • NanoMarkets provides industry analysis of advanced materials markets in the energy and electronics sectors. We have been covering these activities for a decade. • Our work includes market, company and technology analysis, market forecasting and due diligence. • Offerings include reports, custom consulting, seminars/webinars and in-house training. NanoMarkets is based in US, with extensive contacts all over the world.

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ABOUT THE REPORT NanoMarkets’ latest report on BIPV glass analyzes future scenarios for BIPV. It includes a detailed eight-year market forecast with breakouts by type of building and PV technology and in both volume and value terms. We also discuss the BIPV glass strategies of leading glass and PV firms as well the community of firms whose core business is developing and installing BIPV glass. One possible road to a larger addressable market for BIPV glass will be to use solution-processed PV layers and here we note that both Pilkington and AGC are already actively involved in joint development projects that could do just that. With this in mind, our report examines how the economics of BIPV glass will evolve based on c-Si, thin-film, and DSC/OPV materials. This report also discusses how BIPV glass can better be sold to architects, who are sometimes skeptical of the BIPV glass concept, but remain the key decision makers on the demand side. In part this is about improved marketing. But as we discuss in this report, it is also a matter of playing up the aesthetic advantage of solar glass (for example with tinted and colored products) and by incorporating additional smart features such as hybrid light/photovoltaic capability. This report is based around NanoMarkets ongoing program of publishing industry analyses of various segments of the BIPV market, an area in which we have been involved for five years

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RELATED REPORTS Dye Sensitized Cell Markets – 2014 BIPV Glass Markets - 2012 Building-Integrated Photovoltaics Markets 2012

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IMPACT OF THE SOLAR REVIVAL •

A significant number of BIPV installations in prestige buildings being observed especially in USA and Europe

Thin film technology likely to pave way for cheaper BIPV glass

In an attempt to ramp up their renewable electricity generation capacity, governments of various countries likely to support BIPV markets including BIPV glass

As per European Union’s directions, all buildings in the EU must include a net zero energy component by 2020

All commercial constructions in California (USA), likely to become ZEB by 2030

Japanese government planning to cover 50% of residential electricity load through BIPV based solutions

Due to high costs of BIPV glass products, solar industry unable to penetrate regular construction markets and at present its application is limited to prestige buildings, which is a niche market

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CHANGING PV MATERIAL MIX c-Si

CIGS

Cost, fragility and issues related to transparency are the main limitations. But still it is expected to continue dominating the BIPV glass segment for coming eight years. Innovations such as new levels of efficiencies, metal wrap through, HIT cell might help in bringing down the price of c-Si modules further. Many companies including Eclipsall are active in this technology

Exhibits highest efficiency among all thin film technologies. But achieving scalability still looks difficult for manufacturers. The ability to adjust CIGS composition is the greatest advantage with CIGS but again it requires superior process control that limits its scalability. Hanergy Solar (China) is active in this technology.

CdTe CdTe , the only thin-film technology that has been able to compete with c-Si. First Solar seems to be one of the few companies active in CdTe based solar modules, but not interested in BIPV. Transparency levels allowed by CdTe and toxic nature of Cadmium limits applicability CdTe in BIPV applications. First Solar and RSI are active in this area.

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DSC & OPV Both are equal in matters of efficiency, stability and visual aesthetics. Dyesol, Exeger, g2e, Pilkington America and Solaronix involved in pilot production projects to explore feasibility of DSC-based BIPV glass. Heliatek and BELECTRIC are active in OPV technology. DSC and OPV likely to become competitive technologies for BIPV products in future.

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IS BIPV GLASS INTERESTING TO BIG GLASS AND PANEL FIRMS? •

As a result of growing demand of BIPV glass markets, we are likely to see more partnerships between glass firms and PV manufacturers in the coming years

Glass companies see BIPV as a way to show advanced products

Ability to add color and aesthetics to solar panels will provide a competitive advantage for glass companies

Joint venture between SwissINSO Holding (Switzerland) and Acomet Solar (Switzerland) is an attempt to integrate SwissINSO’s Kromatix colored glass technology with solar modules to improve aesthetics and overall efficiency of BIPV

Major glass companies like AGC and NSG actively involved in R&D related to BIPV glass

Glass companies have shown interest in smart windows and similar applications where BIPV glass can be an integral part

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IMPACT OF GREEN BUILDING SEGMENT

According to directives from OEERE (USA) and EEC (European Union), net zero emission is mandatory for all new buildings which in turn likely to create new market opportunities for BIPV glass in the green energy building sector

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Subsidies granted in USA, China, Europe and Japan on PV and BIPV products might help in adoption of BIPV glass in the green building sector

At present, BIPV glass offers the ideal solution for achieving the required energy efficiency and visual aesthetics for the global green building market, value of which is estimated to be more than a trillion dollars

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CHANGING SUPPLY CHAIN: RETAIL AND DISTRIBUTION

Being a niche market within construction industry, BIPV glass products are being distributed by the manufacturers to the site directly but now efforts are made to integrate it with supply chain of construction market.

BIPV GLASS MANUFACTURERS

CONSTRUCTION CONTRACTORS Also firms started building their own distribution network. For example:- Cristacurva, a glass firm from Mexico has become distributor of Onyx In Texas, Oklahoma and Louisiana.

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END USERS

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OPPORTUNITY ANALYSIS AND ROADMAP BY PRODUCT TYPE Windows Potential integration of this BIPV product with smart glass likely to create opportunities for integrated BIPV glass windows on a large scale. Reduces energy consumption by eliminating the need for heating, lighting and air-conditioning. However efforts to combine PV capabilities with smart glass is at experimental stage and at present it will be difficult to predict its commercial feasibility.

Skylights Provide an unobstructed surface for sunlight diffusion and hence leads to better power generation. Architecture-inspired multifunctional abilities of skylights will make them most preferred BIPV product in the construction industry. Availability in multiple configurations like ridge, single slope, and pyramid makes skylights feasible to be installed in a wide variety of spaces .

Building facades and curtain walls Facades provide large square foots of area that can be converted into PV generating surfaces. Being vertical installations might not receive high intensity insolation and also intensity of incident insolation likely to get reduce due to physical obstructions such as trees and neighborhood buildings.

Atrium glass, canopies and pergolas Use of BIPV glass in atrium, canopies and pergolas adds to architectural shape of the building in addition to increasing its energy efficiency. e.g- British Gas-owned Smart Home development in Watford (U.K) used a transparent solar PV glass atrium.

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FIRMS TO WATCH IN BIPV SEGMENT Firms

BIPV products

Comments World’s largest producer of flat glass

AGC Glass

SunEwat and Sunjoule range of BIPV glass products based on mono and polycrystalline Si

BIPV glass products focused on facades

A key company in CdTe space

First Solar

CdTe , C-Si and PV modules

Acquired GE’s IP portfolio on CdTe technology Not immediate involvement in BIPV but products offered are being used by third party in BIPV glass installations Intends to become the leading manufacturer of thin film solar cells, CIGS in particular

Hanergy

PV modules for BIPV (CIGS and Si based thin film technology)

Acquisition of CIGS specialty firms like Global Solar, MiaSolar, and Solibro supports its intentions It is expected to achieve cost efficiencies in manufacturing processes but strategies to perform competitive business with CIGS not very clear.

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FIRMS TO WATCH IN BIPV SEGMENT Firms

BIPV products

Comments A key firm to watch in OPV technology

Heliatek

OPV films for facades

It has signed a joint venture agreement with AGC glass. Such collaborations show its efforts towards exploring potential of OPV for manufacturing BIPV glass especially for facades. Has ramped up production and is offering BIPV glass.

Onyx

Curtain walls, skylights, PV glass based in c-Si and a-Si

Executed many key prestigious projects in skylights in USA, which in turn will develop awareness about the benefits of BIPV glass in the market. Has plans to launch DSC-based BIPV glass modules by 2015 in collaboration with Dyesol.

Pilkington (NSG)

DSC panels for BIPV applications, DSC materials

Plans full scale deployment by 2020. Dytech Solar, a collaboration of Dyesol and Pilkington America, to launch pilot production project

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OPPORTUNITY ANALYSIS REGION/COUNTRY WISE

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• Expected to be the largest BIPV glass market in the coming years. • European demand for BIPV glass is likely to constitute a major portion of the global BIPV glass demand. • EU directives for all new buildings to be net-zero energy building by 2020 and the target of 20% power generation using renewable energy set by Energy Performance of Building Directives, likely to start new era of opportunities for BIPV glass.

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Asia Pacific

• USA , an established market for BIPV and has huge potential for further growth. • Demand is mainly driven by installation of BIPV glass in a few prestigious projects • Demand exists mainly for BIPV products like facades and skylights. • Bisem and Onyx Solar are the major firms in the U.S BIPV markets.

Europe

United States

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• Japanese government’s intentions to meet 50% of its residential power load through BIPV will drive growth for BIPV markets in Japan. • Panasonic, Sharp are deriving BIPV market in Japan with their evolved BIPV products. • In China again it is government’s favorable stand on BIPV glass that is driving the demand. • Chinese BIPV firms have mainly adopted acquisition and collaboration as growth strategy.

©2014 NanoMarkets, LC


MARKET OUTLOOK 5000

than 45% In immediate future, we don’t see much growth in commercial and residential buildings but definitely opportunities exits in future

4500 4000

$ Millions

In eight years duration, a shift from prestige buildings to zero-energy buildings is likely to be seen if CAGR revenue from BIPV is ismore glass considered

3500

Industrial buildings

3000

Residential buildings

2500

Commercial and government buildings

2000

Prestige buildings

1500

Zero-energy buildings

1000 500 0

2014 2015 2016 2017 2018 2019 2020 2021

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CONTACT US Address: NanoMarkets, LC PO Box 3840 Glen Allen, VA 23058 Telephone / Fax 804-270-1718 804-360-7259

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