Download Q.CELLS: NOT ALL MODULES ARE CREATED EQUAL

Q.CELLS: NOT ALL MODULES
ARE CREATED EQUAL
Worldwide installed solar Photovoltaic (PV) generating capacity has increased from 6GW in
2006 to over 60GW at the end of 2011. Since 2006, technology developments and manufacturing efficiencies have reduced the cost of solar modules by 70%, and their share of
system cost from 70% to less than 50%1. Consistent and low-risk cash flows over 20 to 25
years with minimal operating costs and zero fuel costs, solar PV projects are an attractive
investment, permitting high levels of debt and fixed price contracts with customers.
Predictable returns require system components to perform as expected. Module manufacturers warrant product performance over 20-25 years and system operators guarantee
system performance over 20 years. However, 80% of installed modules have been in the
field for less than three years. Conventional quality standards have not kept pace with
developments in technology and are insufficient to guarantee performance. High-profile
product recalls and failures from some of the largest PV module manufacturers underscore the seriousness of PV module quality issues.
The price of low quality is very high. A rate of module degradation just 0.5% higher thanexpected can reduce system output by more than 6% over 25 years2. The major causes of
under-performance are progressive and systemic and extremely difficult to detect and
rectify. Warranties and performance guarantees provide investors with some protection
against underperformance but they can be expensive to exercise and provide only limited
coverage. However, few companies have the operational experience, the comprehensive
understanding of the solar PV value chain from cell to system, or control over quality to
actually deliver on these guarantees.
Conventional approaches to quality and risk mitigation in solar PV module selection need
to be reassessed in the light of experience and developments in technology. Confidence
in the viability of solar PV cannot be achieved through passive reliance on minimum quality standards and warranties, but through active management of quality and a focus on
profit maximization.
QUALITY IS THE BEST WARRANTY
Q.CELLS is redefining quality in solar PV systems, leading the industry in standards of:
•
•
•
PERFORMANCE – developing technologies and manufacturing techniques which
increase efficiency and eliminate the causes of underperformance and continuous
quality monitoring throughout the manufacturing process
RELIABILITY – developing and implementing robust testing procedures more than
double the industry standard to go beyond the standard certifications such as IEC and
UL, making it the only manufacturer to carry the “VDE Quality Tested” mark from
Germany’s independent VDE Testing & Certification Institute
CONSISTENCY – 100% testing and tracking from cell to module, continuous monitoring
of every step in the manufacturing process and regular repetition of reliability tests
Source: Photon Magazine, Navigant Consulting, Greentech Media, Q.CELLS Research
Source: Illustrative example of 5MW fixed-tilt system in Southern California
1
2
page 2
WHY QUALITY MATTERS
Modules experience enormous stresses during their 25 years in the field: solar radiation,
humidity, temperature, wind, rain and dust take a toll on physical and electrical performance. All modules degrade over time, with most manufacturers warranting a rate of
0.6-0.8% per year3.
Even microscopic imperfections in a cell, component or manufacturing process can impact performance. Under typical operating stresses these imperfections can progress rapidly into major faults. Inconsistent performance between cells puts strain on other module components and can cause the entire module to underperform. “Mismatch” between
performance of modules can then propagate across the system through the series strings
connecting modules. The expansion of small weakness into major faults can cause electrical short-circuits which damage the module and other system components and can
cause fires or dangerous electrocution risks.
It is extremely difficult to detect and diagnose underperformance, let alone rectify it.
Monitoring systems measure only aggregate performance and cannot pinpoint underperformance in specific components or disaggregate the effect of variations in environmental
conditions. With as many as 4,000 or more modules per installed Megawatt testing and
problem isolation is prohibitively expensive.
Module underperformance can be systemic with weaknesses in components or manufacturing processes affecting a supplier’s entire batch or product line.
QUALITY IS A REAL ISSUE
Quality issues have impacted some of the world’s largest module manufacturers:
FIRST SOLAR4
•
•
Modules sold in 2008 and 2009 were found to degrade by 10-15% within weeks.
The cost of replacing modules and compensating customers exceed $250MM to date.
In 2012 it increased warranty provisions for module underperformance in high
temperatures.
REC5
•
All of the 420,000 modules sold in 2008 and a quarter of 2007 were repaired or
replaced at a cost of over $200MM.
SUNTECH6
•
In 2012 recalled 100% of its Solar Shingle product due to fire risk.
These modules had passed all standard tests, highlighting a potential issue for the solar
PV industry. Average degradation of 1% on modules installed since 2006 could result in
aggregate underproduction of 100TWh over the life of those modules. This issue will
continue to grow with the industry unless module quality is addressed.
5
6
3
4
Source:
Source:
Source:
Source:
Manufacturer spec sheets from Tier 1 Module Manufacturers
Company Regulatory Filings, PV Magazine, Greentech Media
Company Announcements, Dagens Naeringsliv via Greentech Media
U.S. Consumer Product Safety Commission
page 3
THE VALUE OF Q.CELLS QUALITY
Q.CELLS PV PLANT PROVEN IN-FIELD PERFORMANCE7
Q.CELLS Proven Performance Against competitors8
Average daily energy yield (kWh/kWp) March 2010 - June 2012
Q.CELLS modules have performed better than key competitors in
extended testing in the harshest of environments including the
dry heat of the Australian outback. This performance advantage
has been demonstrated in the field where actual output from systems built using Q.CELLS modules exceeds standard performance benchmarks consistently.
PV Plant Performance Ratio January 2011 - December 2011
The higher performance, reliability, and consistency of Q.CELLS
modules offer project investors and operators higher outputs at
lower risk.
95%
90%
85%
80%
75%
70%
5.4
5.2
-1.90%
5.23
-4.70%
5.0
-8.30%
4.8
-10.60%
4.6
4.84
4.80
5.13
4.99
-8.20%
4.68
4.65
4.2
4.0
CdTe
a-Si
Mono-Si Poly-Si Mono-Si Mono-Si Poly-Si Mono-Si
+ 2.0%
IRR
25%
20%
+ 1.4%
IRR
15%
10%
5%
+ 0.7%
IRR
+ 22.7%
YIELD
+ 14.3%
YIELD
+ 7.0%
YIELD
0%
Standard
Degradation Rate
Source: Q.CELLS Power Plant Monitoring
Source: DKA Solar Center, Alice Springs, Australia
9
Illustrative Example: 5MW fixed-tilt system in Southern California
with 30% ITC; 20 year PPA $0.12/kWh; Unlevered, pre-tax IRR
7
8
4.94
-11.00%
Q.CELLS Advantage9
A system which maintains the 7.0% output advantage over standard systems demonstrated by Q.CELLS in testing and in-field
experience could achieve a pre-tax IRR increase of up to 0.7%.
The advantage over systems experiencing degradation rates of
1.0-1.5% is an increase in output of 14-23% and of 1.4-2.0%
IRR.9
-5.10%
4.4
Q.CELLS
Poly-Si
Expected
Actual
4.79
-7.60%
1.0%
1.5%
page 4
YIELD SECURITY THROUGH INNOVATION
Q.CELLS has the largest R&D center in the industry, employing some 200 engineers and
scientists. Q.CELLS’ advanced designs build Triple Yield Security protection into every
Q.CELLS module, eliminating key failure points and ensuring 100% consistency and
traceability.
ANTI PID TECHNOLOGY (APT)
POTENTIAL INDUCED DEGRADATION (PID)
ANTI-PID TECHNOLOGY
•• Tiny voltage differences between cells within
•• PID is eliminated at the cell level during
the module and the module frame allow
current to leak out, decreasing output by up
to 20%10, even in the first few months of
operation
manufacturing
•• Modules from leading competitors tested by
Fraunhofer ISE experienced performance
losses of 5-90%
HOT SPOT PROTECTION (HSP)
HOT-SPOTS
Q.CELLS HOT-SPOT PROTECT
•• Manufacturing and handling stresses create
•• 100% of cells are tested for Hot-Spots
very small material defects within cells.
Partial shading of a module creates strong
reverse currents which channel through the
Hot-Spot area.
•• The Hot-Spot can reach 250C causing
irreversible damage, module failure and
potentially leading to fires and electrocution
risks.
•• Approximately 1% all cells have a Hot-Spot
(almost 1 per module)
•• Most manufacturers simply reduce cell
performance to mitigate the effect of
Hot-Spots.
during final inspection. Any cells which fail
are recycled
•• Automated cell handling and optimized
packaging minimize damage
TRA.Q™ TRACEABLE QUALITY FROM WAFER TO MODULE
Every genuine Q.CELLS cell is laser marked with a unique identifier containing detailed
information including its source, the date of production and even the material used. The
cells are traced through every step in the manufacturing and quality assurance processes.
This allows even the smallest faults to be traced all the way back to the original wafer,
allowing every component and manufacturing processes to be improved continuously.
Source: Photon Report October 2010
10
page 5
VERIFYING QUALITY
The testing processes for assessing performance and reliability of PV modules focus on
compliance with safety standards and verification of manufacturers’ statements about
initial performance. These tests incorporate some performance and durability testing but
only on a limited sample of complete modules and are repeated rarely.
Testing standards have become self-reinforcing as manufacturers achieving the required
standard for “white listing” gain the most experience with project developers and investors. Test standards have not evolved with changes in technology, field experience or
testing capabilities. Current test standards offer very limited confidence for investors, or
reliable quality differentiation and performance guides for developers. There have been a
number of high-profile failures in recent years after short operating periods from modules
produced by some of the largest manufacturers that have passed these standard tests.
200% Quality tested
Q.CELLS has partnered with the independent VDE Institute to develop the “VDE Quality
Tested” testing program, the most comprehensive in the industry. This program includes
2-3 times the standard environmental tests with limits 35% higher and adds continuous
assessment of quality control to tests of the product itself.
Safety
Initial Quality
Ongoing quality
Certification
UL 1703
IEC 61215/61730
vde certified seal
Number of tested Modules
12
8
14
Maximum allowed Degradation
8%
8%
5%
Damp-Heat Test Hours
none
1000
1500
Thermal Cycles
200
200
400
Humidity Freeze Cycles
5
10
10 after dynamic load
Wet Leakage
Yes
none
Yes
Yes
Yes
Yes
Climate Chamber
none
none
Quarterly verification of monthly
control samples
Electroluminescence Hot-Spot Test
none
none
100%
Wet Leakage
none
none
1%
Reverse Current PID Test
none
none
Yes
Periodic Verification
Flash Test, Hi-Pot, Process Parameters
Continuous In Line Quality Control
page 6
In addition, Q.CELLS’ robustness in tough environmental conditions has been verified
through testing for:
•
•
Corrosion resistance from ammonia vapors in the countryside, acid rain in the city and
salty air by the coast to the exacting DIN EN 60068 standard
High wind resistance: Q.CELLS modules are the only ones to have passed the
Category D cyclonic pressure tests administered by James Cook University in Australia
Thanks to its rigorous quality testing program Q.CELLS enjoys one of the lowest return
rates in the industry, equivalent to one module per 10MWp sold.
CONSISTENCY
Lower quality materials, manufacturing processes and limited inspection testing can lead
to inconsistencies in the quality of each module produced.
Q.CELLS 100% QUALITY ASSURANCE TESTING
Q.CELLS Quality Assurance processes and teams are involved from design to delivery.
Every cell is tracked through each carefully monitored quality testing process from wafer
to module using Tra.Q™. In addition, every 50th module goes through additional quality
controls and every month a sample of modules is put through rigorous performance testing.
OPTICAL DEFECTS
Q.CELLS QUALITY
•• Cells and other module components can
•• Defects can cause modules to underperform
become misaligned or damaged during
module assembly due to manual processing,
poor controls and sorting criteria
or fail, creating safety risks
•• Fully automated production
•• Comprehensive sorting of cells and modules
•• 100% inspection and testing
ENCAPSULANT DEGRADATION
Q.CELLS QUALITY
Low quality encapsulant material and process
weaknesses in application can cause:
•• Browning which reduces the light reaching
cells
•• Delamination and destabilization of the
module
•• High quality encapsulant from regularly
SOLDERING TECHNIQUE
Q.CELLS QUALITY
•• Manual cell layout, stringing and soldering
•• Fully automated process with 100%
add thermal stress, damage internal module
components and result in inconsistent
connection quality
audited suppliers
•• Continuous process monitoring
•• Extended climate testing including ammonia
and salt fog
machine inspection of cell geometry, ribbon
alignment, string length and cell gaps
•• Cross-connectors soldered to a beam not
directly onto glass, increasing durability
page 7
Modules from leading manufacturers tested to Q.CELLS standards have failed one or
more failure and underperformance tests:
MODULE
INSPECTION
China
China
Germany
China
Germany
Q.CELLS
Optical
Defects
Fail
Fail
Fail
Pass
Pass
Pass
Encapsulant
Test
Pass
Fail
Pass
Pass
Fail
Fully
Automated
Soldering
Technique
Manual
Manual
Automated
Automated
Manual
Fully
Automated
QUALITY IS PREVENTATIVE, INSURANCE is REACTIVE
Manufacturers’ warranties and output guarantees from system operators offer investors
some protection but can be complex to structure and enforce.
Manufacturers offer limited product warranties of up to 10 years, and performance warranties over 20-25 years. However, recourse is limited to replacement or a partial refund
for underperformance, but not lost revenue or the cost of locating and replacing faulty
modules, more than the original cost in most cases. Moreover, few companies can fully
support these warranties with operational experience, comprehensive understanding of
the solar PV value chain from cell to system, or quality control.
System operator performance guarantees assume product underperformance risk with
unlimited downside, significant factors in contract pricing which will increase with further
evidence of underperformance. The guarantee trails actual performance by up to 4 years
and is based on a margin below expected output, while its value relies on the system
operator’s financial strength. The trailing and margin effects mean that module deterioration 1.0% per year will not breach the guarantee until the seventh year and could cost the
investor 2.0% of pre-tax cashflow and 0.4% IRR.11
QUALITY IS THE BEST WARRANTY
Confidence in the quality of PV modules reduces risk for investors and system operators,
the requirement for cash reserves for repairs and the financing risk premium for solar PV
projects. Q.CELLS’ commitment to quality provides security of maximum output at minimum risk. Q.CELLS North America is confident in its quality so offers a market-leading
warranty guaranteeing aggregate output 0.7% higher than the best competitor and 7.2%
higher than industry standard.
11
Illustrative Example: 5MW fixed-tilt system in Southern California with 30% ITC; 20 year PPA $0.12/kWh;
Unlevered, pre-tax IRR; Guarantee margin 4% Years 1-4, 2% trailing by 4 years thereafter
page 8
NOT ALL MODULES ARE CREATED EQUAL
LOW QUALITY TODAY IS EXPENSIVE TOMORROW
•
•
•
•
Any weakness in product design, manufacturing or testing can have a significant
impact on the performance and reliability of PV modules, and on investor returns
These weaknesses are hard to identify, difficult to rectify and tend to be progressive
and systemic, undermining confidence in the viability of solar PV
Standard testing regimes employed by most solar PV manufacturers do not address
the issues of underperformance adequately and underperformance is a very real and
rapidly growing issue
Downside coverage is limited and adds to the cost of developing projects
QUALITY IS THE BEST WARRANTY
Q.CELLS is redefining quality in solar PV systems, leading the industry in standards of:
• PERFORMANCE – developing technologies and manufacturing techniques which
increase efficiency and eliminate the causes of underperformance and continuous
quality monitoring throughout the manufacturing process
• RELIABILITY – developing and implementing robust testing procedures more than
double the industry standard to go beyond the standard certifications such as IEC and
UL, making it the only manufacturer to carry the “VDE Quality Tested” mark from
Germany’s VDE Testing & Certification Institute
• CONSISTENCY – 100% testing and tracking from cell to module, continuous monitoring
of every step in the manufacturing chain and regular repetition of reliability tests
ABOUT Q-CELLS North america
Q.CELLS North America, part of Q.CELLS SE, designs, builds and manages financially sustainable solar photovoltaic
(PV) solutions. The company brings a decade of global leadership in solar PV to North America, combining best-ofworld technology, processes and partnerships to deliver utility-grade solar PV solutions customized for local energy
markets. Q.CELLS North America offers the full spectrum of PV solutions--from the core technology of cells and
modules to power plant development, design, construction, operations and maintenance. With proven capabilities
across the solar value chain, Q.CELLS North America minimizes uncertainty and risk, and helps customers achieve
a higher return on their investment in solar energy. For more information about Q.CELLS North America, please visit
www.q-cells.com.
CONTACT Q-CELLS
95 Federal Street
San Francisco, CA 94107
TEL
FAX
415 541 9300
415 541 9301
EMAIL [email protected]
WEBwww.q-cells.com