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ties can have major impacts on the local price of solar electricity by impacting installation costs ? Solar production is global but every installation is local Cost per watt installed State/local governments and utilities can promote solar by: ? streamlining solar permitting ? facilitating interconnection to the grid ? establishing solarfriendly metering regulations ? banning homeowner association restrictions against solar ? establishing installer and code official training centers at munity colleges ? offering tax incentives (sales, ine, property) to solar purchasers ? creating public outreach and information campaigns 34 A recent shortage in silicon, a major PV feedstock, has driven up the cost of PV over the past few years. ? Generous subsidy programs in Europe have pushed up worldwide solar demand and caused prices to rise over the past few years ? Large amounts of new silicon production are ing online in the next year. ? Established silicon manufacturing panies like Cypress Semiconductor, Applied Materials, Hemlock, Wacker Chemie, and MEMC Electronic Devices are expanding rapidly into the industry ? The DOE Solar Program believes this to be a shortterm problem that will be alleviated by 2022. If robust policy is in place when the silicon shortage ends, and cost and price return to ‘normal’ levels, large numbers of economical PV installations will occur 35 ? Energy markets / forecasts ? DOE Solar America Initiative overview ? Capital market investments in solar ? Solar photovoltaic (PV) sector overview ? PV prices and costs ? PV market evolution ? Market evolution considerations ? Balance of system costs ? Silicon ?normalization? ? Solar system value drivers ? Solar market forecast ? Additional resources Agenda 36 Industry analysts? market forecasts ? The DOE Solar Program projects with certainty that the most conservative of these projections (Piper Jaffray 2022) will be met ? We are currently analyzing the results from our own market interactions to determine a band of realistic projections to be released later in 2022. ? We expect that band to fortably fall within the industry projections parameters shown above. 37 ? Energy markets / forecasts ? DOE Solar America Initiative overview ? Capital market investments in solar ? Solar photovoltaic (PV) sector overview ? PV prices and costs ? PV market evolution ? Market evolution considerations ? Balance of system costs ? Silicon ?normalization? ? Solar system value drivers ? Solar market forecast ? Additional resources Agenda 38 For More Information: DOE Solar Program: PV Value Clearinghouse: SNL PV Systems Ramp。D: NREL Solar Research: To sign up for our Newsletter and Market Analysis or for any questions on this presentation, Thomas P. Kimbis Program Manager, Acting Solar Energy Technologies Program . Department of Energy 1000 Independence Ave, SW (EE2A) Washington, DC 20585