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FY 2004 ANNUAL REPORT DOE Solar

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FY 2004 ANNUAL REPORT DOE Solar ( fy-2004-annual-report-doe-solar )

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module manufacturing processes; system and system component packaging; system integration, manufacturing, and assembly; product manufacturing flexibility; and BOS development. These subcontracts emphasize new and improved in-line diagnostics and monitoring with real-time feedback for optimal process control and increased yield in the fabrication of PV modules, systems, and other system components. 2.3 Yield, Durability, and Reliability The YDR subtask consists of cost-shared PV manufacturing R&D subcontracts resulting from the FY 2003 YDR competitive solicitation. It focuses on the improvement of module manufacturing processes to increase module reliability; system and system component packaging; system integration, manufacturing, and assembly; product manufacturing flexibility; and BOS development including storage and quality control. It emphasizes the enhancement of module, PV manufacturing capacity has increased from 14 MW at the Project’s inception to 201 MW at the close of 2003. This increase in capacity represents a 25% compound annual growth rate over the 12-year period examined. Direct manufacturing costs, in 2003 constant dollars, declined from $5.55 to $2.49 over the same time period, a 6.5% compound annual reduction. In addition, the PVMR&D project tracks the manufacturing cost savings resulting from improvements implemented under project subcontracts (this was completed in May 2004). Public savings (shown in Fig. 2) is calculated based on measurable price reductions, whereas industry savings (shown in Figure 3) is based on the amount retained by the manufacturers. For both the public and private sectors, estimated cost savings exceeded investment during 1998, with a projected discounted-cash-flow rate of return at 40% through 2009. Fig. 1. FY 2003 U.S. PV module manufacturing cost-capacity system component, and complete reliability. 3. Results and Accomplishments 3.1 PV Manufacturing R&D Management system To measure progress toward contributing to the Solar Program, the PVMR&D Project completed its FY 2004 milestone to “Analyze U.S. PV industry cost/capacity/recapture data and report on progress.” This milestone provides input to DOE and NREL decision makers on the growth of the U.S. PV Industry in support of the MYTP Milestone 14, Task 3 (due in FY 2006). Both historical and projected values for manufacturing cost and capacity were compiled in collaboration with PV industry partners. An evaluation of the FY 2003, data completed in March of 2004, indicates progress toward achieving the Solar Program’s cost goals, as well as demonstrating cost savings directly related to project participation. Figure 1 shows the cost-capacity results of the FY 2003 survey of PV module manufacturers. Total Fig. 2. Recapture of public investment in PVMR&D

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