An analysis of the photovoltaic value chain for reviewing solar energy policy in Massachusetts

Abstract

We explore the photovoltaic value chain for 1st generation crystalline silicon, 2nd generation thin film and 3rd generation organic/ dye-sensitized PV in an effort to evaluate two levels of policy options intended to create new jobs and develop Massachusetts as a renewable energy hub. The primary option is whether to focus on bringing jobs in manufacturing, R&D or installation to the state. Once the state decides on the type of job or mix of jobs desired, then the state can explore which technology is most likely to accomplish this goal. To evaluate each option we begin with an overview of solar industry in Massachusetts and then break down each generation into processing steps from manufacturing to installation. By defining a value chain for each PV generation, we are able understand which portion of the value chain may be important for developing a renewable energy hub. We find that the state's goals in developing a solar hub need to be more clearly defined before we can select the best policy option. Further research must also detail employment intensity at each value chain step. Once employment intensity and specific state goals are understood, each policy objectives can be reevaluated.