1839
Nineteen-year-old Edmund Becquerel, a French experimental physicist, discovered the photovoltaic effect while experimenting with an electrolytic cell made up of two metal electrodes.

1873
Willoughby Smith discovered the photoconductivity of selenium.

1883
Charles Fritts, an American inventor, described the first solar cells made from selenium wafers.

1887
Heinrich Hertz discovered that ultraviolet light altered the lowest voltage capable of causing a spark to jump between two metal electrodes.

1904
Hallwachs discovered that a combination of copper and cuprous oxide was photosensitive. Einstein published his paper on the photoelectric effect.

1914
The existence of a barrier layer in PV devices was reported.

1916
Millikan provided experimental proof of the photoelectric effect.

1918
Polish scientist Czochralski developed a way to grow single-crystal silicon.

1927
Albert Einstein formalized the Photovoltaic Effect, the theory of creating electricity from sunlight.

1955
Bell Laboratories develops the first solar electric modules, soon to be used on space satellites, to power radios which transmitted signals back to earth. The first satellites used batteries with a finite life for this purpose but a lucky accident found a solar panel powering the transmitter (unknown to the space scientists) for much longer than expected periods.

1959
Fearing diminishing natural resources’ for electric generation, the Japanese government convenes a meeting with the leading Japanese electronics manufacturers to initiate a government sponsored study of commercialization of solar electricity. This meeting was attended by companies that today still dominate the solar industry, Sharp, Kyocera, Mitsubishi and Sanyo. Of course, the technological basis for the meeting was Bell Labs innovation of four years previous.

1960 through 1990
Through this time period Solar, though a small industry, grew at a steady rate. Solar systems were used to provide power for many critical loads, off grid applications such as lighthouses, remote telecommunications, water pumping, rural electrification and the health applications of remote clinics and vaccine refrigeration. Also, remote leisure applications such as marine, RV and vacation cabins used solar generated electricity.

Arco Solar (a US subsidiary of the oil company) was the world’s solar leader and the big fish in a very small pond. Arco Solar received millions of dollars in US federal funding for research and market development.

Early 1990s
Amidst protests and federal hearings, Arco sold its solar operation to a German company, Siemens. After the precedent was set, Solarex (a US, solar subsidiary of Amoco) sold its operation to British Petroleum and ASE, another European company, purchased Mobil solar (US solar subsidiary of the oil company). After that M&A activity the US, though the father and mother of solar power, owned practically no solar technology.

1994 Japan institutes a 10 year incentive program to promote the use of solar power on residences. This program featured high incentives that diminished each year. The net result was, that by 2004, the number of systems installed each year increased from 500 to 60,000, the cost of the systems decreased by 73% and the incentives sunsetted. By 1998 Japan became the dominant solar market and manufacturing base in the world.

2003 An extraordinary “feed in tariff” for solar electric production was instituted in Germany. This tariff paid more than 2.5X the amount for solar generated kilowatts than standard utility generated power cost the rate payers. This incentive pays out for 20 years making solar power an incredible investment opportunity. Germany skyrocketed to the #1 solar market position in the world in 2005 surpassing Japan. Consequently, many German solar companies have gone public and attracted thousands of investors. $1.8B of capital was raised in a 12 month period. The German market is now 2X that of Japan and 6X that of the US.

Think of it: Germany and Japan have less usable sunlight than the northern tier states of the US!

2005 The US Federal Energy Bill was passed and featured a two year tax credit for installing solar systems. This was the first federal solar incentive enacted in the US since 1985. Championed by Senator Lamar Alexander of Tennessee, some say because of the location of the Sharp solar factory in Memphis, this bill allows a 30% federal tax credit for installation of solar systems on both residential and commercial buildings. The residential credit is capped at $2000.00 and the commercial is uncapped. Though a good start, two years is far too short to be very meaningful and the US solar industry is asking for an eight year extension on both applications and an increase in the residential credit amount. This extension will be voted on in 2007.

2006
Suntech, a Chinese company raises more than $400M in a public offering and vaults to a position in the top ten in solar production in the world. Now there are at least five Chinese manufacturers of note. California passes the breakthrough California Solar Initiative (CSI) which guarantees a ten year incentive for solar applications. The solar industry breaths a sigh of relief as this initiative was originally opposed by both unions and California elected Democrats. Thanks to the CPUC, the Governors office and changing attitudes of California Democrats, the initiative went into effect in January.

The present Since mid 2004 there has been a shortage of refined silicon which has slowed the growth of the solar industry. It is not accurate to call this phenomenon a shortage because it was the explosive growth of the German market that caused the inadequacy of supply. The solar industry uses 58% of the worlds’ refined silicon and silicon chips the remainder. A complete reversal from three years ago. To overcome this shortage, refiners are busy building plants and solar cell manufacturers are making thinner, more efficient cells, using scrap better and developing less silicon hungry solar technologies. The gap between supply and demand should begin to close by 2008. In the meantime, with the ending of incentives, the Japanese market has slowed. German feed in tariffs, by design, diminish by 5% per year and some say that that market is or will cool down shortly. To meet part of their need for energy, China is supporting the growth of its solar industry and even providing funds for the development of the largest silicon refinery in the world. Spain, Italy, France, Portugal, S. Korea, and Canada have active solar programs.

But what about the US? This third largest solar market is now drawing the attention of the worlds’ solar industry. German and Chinese companies that are the beneficiaries of large IPO’s are purchasing US solar entities and also opening US offices. Japanese companies such as Sharp, Kyocera, Mitsubishi and Sanyo are already entrenched in the US market. Recently a Japanese company, Mitsui, purchased a long time American solar distribution company. Two smaller companies are the only US owned players; Sunpower and UniSolar and the former manufactures in the Philippines. These companies account for about 7% of the worlds’ production. That being said, it is becoming clear, that the US could, in the near future, become the largest solar market in the world!