Cadmium Telluride Photovoltaics Perspective Paper

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Photo of cadmium telluride solar photovoltaic panels in an outdoor utility-scale facility.
A utility-scale installation of cadmium telluride solar photovoltaic panels.
First Solar, Inc.

Cadmium telluride solar photovoltaics (PV) are a key clean energy technology that was developed in the United States, has a substantial and growing U.S. manufacturing base, and holds more than a 30% share of the U.S. utility-scale PV market. The Cadmium Telluride (CdTe) PV Perspective Paper (PDF) describes the state of CdTe PV technology and provides the perspective of the U.S. Department of Energy (DOE) Solar Energy Technologies Office (SETO). It presents SETO’s priorities to advance CdTe technology through investments to reduce costs, address materials availability and supply chain costs, and support the ongoing scale-up of CdTe technology within the domestic utility-scale PV market. These priorities will enable CdTe PV to support SETO’s goal of improving the affordability, reliability, and domestic benefit of solar technologies on the electric grid.

Over the past two decades, CdTe PV costs have fallen, efficiencies have increased, and manufacturing economies of scale have been realized. CdTe provides inherent manufacturing advantages over its main competitor, crystalline silicon (c-Si) PV, including lower energy consumption and lower capital costs for scale-up. However, c-Si PV technologies are currently more efficient at both the cell and module level. 

CdTe PV can become more competitive with c-Si PV by accelerating technology innovations to reduce cost, increase efficiency, boost availability of materials, and improve end-of-life (EOL) management, while ensuring there is a skilled workforce to realize this progress. In addition, since CdTe represents a significant share of U.S. utility-scale PV deployment, tools for system characterization, monitoring, operations, and maintenance that were originally designed for c-Si PV must be able to accurately assess the performance of CdTe technology. Together, these improvements can enhance CdTe PV’s performance, reliability, and bankability. SETO has identified the areas described in this report as top priorities to support the present and future competitiveness of CdTe technology.

CdTe Industry and Technology

At present, CdTe is the leading domestically fabricated PV technology (by volume) and plays a key role in the expansion of PV deployment and employment in the United States. In 2022, CdTe technology commanded about 34% of the U.S. utility-scale PV market and about 3% of the world PV market, and preliminary 2023 data is currently indicating flat CdTe module shipments year over year.1,2,3,4 The historical market share of the CdTe module technology in the U.S. utility-scale market segment over the past 10 years is shown in Figure 1. Effectively all CdTe modules are currently used in utility-scale PV systems, as rooftop PV systems have more constraints on system size and efficiency needs that make silicon modules more favorable.

Domestic production of CdTe PV modules supports the U.S. economy, creates jobs, and provides technological diversity to the PV industry. The CdTe PV supply chain is fundamentally different from c-Si PV, with materials and tools within it often sourced from firms in the United States or our allied nations, in contrast to c-Si.  As manufacturing of CdTe PV continues to expand, this expansion also helps drive U.S. economic growth. 

Figure 1: Market share of CdTe and c-Si PV modules in utility-scale PV systems installed in the United States. 
Figure credit: National Renewable Energy Laboratory (NREL)

SETO CdTe Portfolio and Research Community

SETO has employed several programs to support the competitive position of CdTe PV.18 This includes opportunities for cooperative funding agreements and grants for university and national laboratory research and development, as well as industry-focused research, development, and demonstration funding programs. Fiscal year 2020–2023 programming that supported CdTe innovation included multiple PV funding opportunity announcements (FOAs), Small Innovative Projects in Solar (SIPS) FOAs, Incubator FOAs, the Small Business Innovation Research/Small Business Technology Transfer Research funding program, the Technology Commercialization Fund funding program, and the American Made Solar Prize, as well as the CdTe Accelerator Consortium (CTAC) and National Renewable Energy Lab (NREL) core program for CdTe research.19,20,21   

SETO’s current and historical investments have supported CdTe PV innovation for levelized cost of energy (LCOE) reduction through improved power conversion efficiency (PCE) and manufacturing throughput, reduced module embedded energy, higher fielded module energy yields, and enhanced module recycling technology for the reclamation of valuable raw materials (and containment of their toxicity). Key research efforts that have been accelerated by federal support include the development of high-rate vapor transport deposition, Group V doping, and zinc telluride back contact technology. These innovations have ultimately helped enable high-volume high-throughput CdTe process capability with efficiencies over 19% and long projected lifespans (estimated >25 years).22,23,24,25,26,27 In addition to their direct impacts, these actions collectively have reduced the risk for large-scale investment in CdTe manufacturing technology and accelerated industrial growth.28,29

There are two consortia that are active in CdTe technology development: CTAC, launched by DOE in 2022, is administered by NREL and funds work throughout the domestic CdTe R&D community. This consortium was created in response to specific congressional direction to accelerate domestic CdTe PV and includes key industrial and academic stakeholders. CTAC works toward the goals of CdTe cell efficiencies of > 24% by the end of 2025 and > 26% by the end of 2030, and it periodically releases solicitations for new research projects in areas that are important to the consortium’s goals.

The United States Manufacturing of Advanced Cadmium Telluride (US-MAC) consortium was formed as a result of years of ongoing interaction and collaboration between members of the CdTe R&D community. US-MAC goals include enhancing and expanding the CdTe R&D ecosystem, supporting engagement between its members, and working to improve the overall competitiveness and market share of the CdTe PV technology.

SETO Research Priorities for CdTe Research, Development, and Demonstration

SETO supports innovation to harness America's abundant solar energy resources for secure, affordable, and reliable electricity. As a key part of this mission, SETO seeks to enable a sustainable, robust, and resilient solar supply chain that provides domestic value and job creation.  SETO accelerates the expansion of domestic manufacturing capacity and spurs private-sector investment by reducing technical and commercial risk of new technologies. The innovations and technologies that SETO funds increase value and domestic content of solar products across the entire supply chain and ensure U.S. technology leadership. Going forward, SETO will support CdTe PV through programs aimed at the following priority areas.

Improving CdTe Cell and Module Performance

Increasing Materials Availability and Strengthening the Supply Chain

Enabling Large-Scale Deployment and End-of-Life Reclamation

Additional Resources

Endnotes

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5See, for example, 5N Plus Inc. 2024. “5N Plus Inc. Renews and Increases Semiconductor Supply Agreement with First Solar.” www.5nplus.com/en/news/5n-plus-inc-renews-and-increases-semiconductor-sup/;  
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