US SunShot ArriluceaKuittinen

,
Mission-oriented R&I policies: In-depth case studies
Case Study Report
US SunShot Initiative and

reflections of the Chinese
solar energy policies
Eva Arrilucea, Hanna Kuittinen

February 2018
Case Study Report: US SunShot Initiative and reflections of the Chinese solar energy policies
European Commission
Directorate-General for Research and Innovation
Directorate A — Policy Development and Coordination
Unit A.6 — Open Data Policy and Science Cloud
Contact Arnold Weiszenbacher
E-mail arnold.weiszenbacher@ec.europa.eu
RTD-PUBLICATIONS@ec.europa.eu
European Commission
B-1049 Brussels
Manuscript completed in February 2018.

This document has been prepared for the European Commission however it reflects the views only of the authors, and the
Commission cannot be held responsible for any use which may be made of the information contained therein.
More information on the European Union is available on the internet (http://europa.eu).
Luxembourg: Publications Office of the European Union, 2018
PDF ISBN 978-92-79-80161-7 doi: 10.2777/967418 KI-01-18-152-EN-N
© European Union, 2018.

Reuse is authorised provided the source is acknowledged. The reuse policy of European Commission documents is regulated by
Decision 2011/833/EU (OJ L 330, 14.12.2011, p. 39).
For any use or reproduction of photos or other material that is not under the EU copyright, permission must be sought directly
from the copyright holders.
2
EUROPEAN COMMISSION
Mission-oriented R&I policies: In-depth case studies
Case Study Report
US SunShot Initiative and

reflections of the Chinese solar
energy policies
Eva Arrilucea
Hanna Kuittinen
A Study coordinated by the Joint Institute for Innovation Policy
February 2018 Directorate-General for Research and Innovation
3
,
Table of Contents
1 Summary of the case study ................................................................................... 3
2 Context and objectives of the initiative ................................................................... 5
2.1 Contextual factors and origins of initiatives ..................................................... 5
2.2 Strategic and operative objectives and milestones of the initiatives .................... 8
3 Resources and management ................................................................................ 13
3.1 Governance and management model ............................................................ 13
3.2 Financing model......................................................................................... 14
3.3 Key actors involved in the initiative .............................................................. 15
3.4 Monitoring system and evaluation of the initiative .......................................... 16
3.5 Level and type of citizen engagement in the initiative ..................................... 17
4 Policy instruments and wider policy-mix used for implementing the initiative ............. 17
4.1 Description of the R&I policy instruments used for implementing of the initiative
............................................................................................................... 18
4.2 Connections with other policies .................................................................... 22
4.3 Key turning points of the initiative and policy adapatation measures ................ 25
5 Realised or expected outputs, outcomes and impacts ............................................. 25
5.1 Outputs, outcomes and impacts ................................................................... 25
5.2 Summary of the key indicators .................................................................... 30
6 Conclusions and lessons learned .......................................................................... 31
6.1 Identification and assessment of key strengths and weaknesses of the initiative 31
6.2 Lessons learned and key messages for European R&I policy ............................ 32
References: ................................................................................................................ 34
2
,
1 Summary of the case study
Summary fiche
Title: US: SunShot Initiative
CN: Chinese Five-Year Plans for solar energy
Country: US and CN
Thematic area: Energy
Objective(s): US: To lower the costs of solar energy to make it cost-competitive with
other forms of energy generation by 2020. In September 2017, it was
announced that the utility-scale photovoltaic energy cost target had
been met three years ahead of schedule. The initiative will continue to
work to lower the cost of solar energy and has established a goal to
reach 50% reduction of the cost of solar energy by 2030.
CN: China's 12th Five-Year Plan (2011-2015) set a dedicated plan for
solar energy. The aim of the plan was to reduce the price of solar power
and to increase the manufacturing of PV systems. Other objectives were
to increase R&D for key technologies, developing new, advanced
technology and manufacturing processes for PV, promoting favourable
policies for the domestic market and improving PV standards, product
quality inspection and certification systems. The 13th Five-Year Plan
(2016-2020) continues providing support to Chinese solar energy
sector.
Main governing body: US: The Solar Energy Technology Office (SETO) at the US Department
of Energy (DOE).
CN: The Five-Year Plans are governed by the Chinese National
Development and Reform Commission (NDRC), the central planning
agency in the People's Republic of China. The Chinese Ministry of
Science and Technology (MOST) is the main responsible of the solar
R&D in the country.
Timeline: US: 2011-2030

CN: 2011-2020
Budget: US: 2011-2016 USD 1.6 billion (EUR 1.3 billion). Annual budget 2016:
USD 241.6 million (EUR 194.0 million).
CN: NA. The total budget to solar energy USD 150 billion in 2016-2020.
Brief description of the US: The SunShot Initiative was launched in 2011 by the US Department
case (250 words) of Energy’s Solar Energy Technologies Office (SETO). The overall
mission of the SunShot is to support solar energy adoption by making
it affordable and cost-competitive with other forms of energy by 2020.
More specifically, the goal set in 2011 was to reduce the costs of solar
technologies by 75% before 2020. Due to the technological progress
made and overall market conditions of solar systems, the targets have
been updated to reduce the costs of solar energy by an additional 50%
between by 2030.
CN: The Chinese Five-Year Plans highlights solar energy as one of seven
strategic emerging industries subject to specific government support,
preferential treatment, public planning and control of the industry. The
guiding principles of the plans is to implement and apply scientific
findings in industrial applications, and to seize the global opportunities
created by the transition of the energy systems and strengthening the
Chinese PV industry competitiveness. The plan also aimed at reducing
the costs of PV power generation and quality improvements of the PV
products and production technologies.
Implementation and US: The initiative is coordinated and managed by SETO and it is
organisation (a brief implemented by R&D funding calls targeted to universities, National
description of the Laboratories and companies. The funding calls are launch under five
governance and policy sub-programmes of SunShot: Photovoltaic R&D, Concentrating Solar
instruments used) Power, Systems Integration, Balance of Systems/Soft Cost Reduction,
Innovations in Manufacturing Competitiveness and the National
Renewable Energy Laboratory Support. The applications are subject to
rigorous peer-review based selection process, successful completion of
a negotiation process, including a statement of project objectives,
milestones, and budgets. Since the launch of SunShot, close to 300
projects have been funded and currently there are 253 ongoing
projects.
CN: The Five-Year Plans are governed by the Chinese central
government and the Chinese National Development and Reform
Commission (NDRC). The Ministry of Science and Technology (MOST),
uses multiple programmes to implement the development goals laid out
in the Five-Year Plans. These programmes have established solar-
specific labs and research centres to work in concert with the Five-Year
Plan goals. Apart from research sector beneficiaries, the programmes
have focused supporting technological advancements in Chinese solar
energy industry and the leading PV manufacturing companies are
among the key beneficiaries of the programmes.
Observed / expected US & CN Falling costs: Since the beginning of 2010, the average cost of
outputs, outcomes, and solar PV panels has dropped more than 60%, and the cost of a solar
impacts electric system has dropped more than 70%.
US solar growth: 49.3 GW cumulative installed capacity in 2016.
CN solar growth: 77.4 GW cumulative installed capacity in 2016.
US jobs: The solar industry employs 260 000 persons in 2016.
CN jobs: The solar industry employs 1.96 million persons in 2016.
US Solar manufacturing: 2.8 GW production capacity, 18 000
employees.
CN Solar manufacturing: 48 GW production capacity, 1.3 million
employees.
Assessment of the main elements of mission-oriented R&I initiative1

Directionality (links to US: Yes. SunShot initiative aimed at contributing towards society
societal challenges, fuelled by cleaner energy and it aimed at supporting the US PV
industry transformation): manufacturing industry to regain its global competitive position.
CN: Yes. China’s solar energy policies have targeted initially to provide
electricity infrastructure to all country. Later on, the direction shifted to
support the Chinese solar energy manufacturing industry to become a
global leader, and the solar PV to become important clean energy
source enabling cleaner air and lower GHG emissions.
Intentionality (specific, US: Yes. SunShot has very clear and precise goals: to reduce the
well-articulated goals): levelized cost of energy (LCOE) initially by 75% before 2020 and
currently, by 50% before 2030.
CN: To certain degree. The Chinese solar energy policy has defined
many goals but they are not necessarily very clearly articulated.
Clearly set timeline and US: Yes. SunShot has clear timeline.
milestones: CN: Yes. The Chinese solar energy plans have five-year targets (as all
Chinese Five-Year Plans).
Mobilises public and US: Yes. US is among the leading global investors in renewable energy.
private investments: CN: Yes. China is the leading country in the world in respect to
renewable energy investments.
Focused on new US: To certain degree. SunShot has been claimed to be more focused
knowledge creation on applied research. Although the new era of SunShot (after achieving
(basic research, TRLs 1- the 2020 goals) is expected to provide enhanced attention to early-
4): stage research.
CN: To certain degree. The policy has been more focused on
supporting industrial development.
Focused on knowledge US: Yes.
application (applied CN: Yes.
research, TRLs 5-9):
Demand articulation US: No. SunShot is merely a R&D strategy. There are however other
(involves instruments for complementing policies giving incentives for solar energy demand.
inducing demand): CN: Yes. The demand articulation forms an integral part of the Chinese
solar energy policies.
Multi-disciplinary (inter- US & CN: To certain degree. SunShot is mainly combining expertise
disciplinary and/or trans- of various technologies (e.g. materials, manufacturing, BOS
disciplinary): components, grid connections) within the solar energy field. Similarly,
the Chinese initiative is combining various areas of expertise but mainly
technologies directly related to solar energy sector.
Joint coordination (multi- US: To certain degree. SunShot mobilises many US governmental
level and/or horizontal bodies, but is essentially DOE driven initiative.
governance of CN: To certain degree. Chinese MOST coordinates the solar energy
policies/finance): technology policy together with other policy areas.
Reflexivity (flexible policy US: Yes. SunShot’s progress is monitored closely and adjustments to
design, timely the goals are made accordingly.
monitoring): CN: Yes. The Chinese Five-Year Plan goals have been adjusted based
on the progress achieved.
1
Assessment: Yes, To certain degree, No or Not known.
4
Openness (connected to US: To certain degree. At the initial stage, SunShot initiative was
international agendas linked to the international clean energy and climate change agendas,
and networks): and it still contributes towards making solar energy more cost-
competitive.
CN: Yes. China’s solar energy policy is an integral part of the country’s
efforts to meet international clean energy and emission reduction
targets.
Involvement of citizens: US: To certain degree. Citizens’ engagement activities of SunShot
Initiative are focused on communication and informing.
CN: To certain degree. The role of the citizens in the energy transition
is well recognised but there is limited information of how this is done in
practice.
2 Context and objectives of the initiative
2.1 Contextual factors and origins of initiatives
US context prior the SunShot Initiative
The photovoltaic effect was originally observed as early as 1839 by French physicist
Alexandre Edmund Becquerel, and the discovery was a subject of scientific research
through the early twentieth century2. In 1954, Bell Labs in the US introduced the first solar
PV device that produced a useable amount of electricity aimed at providing alternative
power source for telephone systems in rural areas 3. In 1950s the Space Race led to an
increased surge of PV in NASA research to explore the use of solar PV cells in satellites4.
The oil crisis of the 1970s spurred the interest in solar technologies and the public research
efforts intensified leading to establishment of National Renewable Energy Laboratory but
very high prices compared to conventional electricity sources still prevented large-scale
applications, and PV remained as niche technology used apart from space applications in
small scale consumer electronic devices, such as calculators and watches, and other small
battery charging applications5 and as a power source in remote locations (e.g.
meteorological measurement stations).
In the 1980s, the oil prices fell to meet the energy demand again, and the federal and
interest in solar power development declined. In late 1980s the global warming and climate
change emerged to political agendas because of increased public concerns resulting from
record high temperatures across the US during the summer of 1988 6. The US Federal
Government led by Social Democrat President Bill Clinton began formulating national
policies and incentives that encouraged widespread renewable energy usage in hopes of
mitigating global climate change. In 1997, President Clinton announced the Million Solar
Roofs Initiative at a United Nations conference on global warming 7. The goal of this
initiative was to have solar technologies (includes photovoltaic and thermal technologies)
installed on one million residential rooftops by 2010. At the same time, many states (e.g.
California and Arizona) also created policies to provide incentives for solar energy
installations.
At that time, the global solar energy market had started to take-off, and the global
renewable energy investments had reached already USD 200 billion in 2010, and were
2
Solar Energy Industry Association (2017) Photovoltaic (Solar Electric). Available:
https://www.seia.org/initiatives/photovoltaic-solar-electric
3
Hoang, S. (2017) The Environmental History of Solar Photovoltaic Cells.Available:
https://repository.wellesley.edu/cgi/viewcontent.cgi?referer=https://www.google.es/&httpsredir=1&article
=1019&context=library_awards
4
Ibid.
5
SunLight Electric (2017) Photovoltaic History. Available:http://www.sunlightelectric.com/pvhistory.php
6
https://dornsife.usc.edu/assets/sites/741/docs/DChong_Explaining_Conflict_and_Consensus_on_the_Clima
te.pdf
7
Hoang, S. (2017) The Environmental History of Solar Photovoltaic Cells.Available:
https://repository.wellesley.edu/cgi/viewcontent.cgi?referer=https://www.google.es/&httpsredir=1&article
=1019&context=library_awards
5
expected to grow in upcoming decade to reach USD 3 trillion8. This development was driven
by renewable energy policies in Europe, which had started to support solar energy
installations, incentivised by public policies and generous feed-in tariffs. The domestic PV
supply e.g. in Germany was not able to meet the rapidly growing demand. The Chinese
PV manufacturing industry seized the moment and entered to the market with aggressive
pricing strategies that were supported by public policy and manufacturing subsidies9. This
led to low profit margins of US PV manufacturers, and in 2011, Solyndra Inc. and other US
PV manufacturers filed for bankruptcy10. Despite the breakthrough improvements to the PV
technology since the 1950s and more than 30 years of government support, the US share
of the global market for photovoltaic modules was just 6% in 2011, down from 43% in
199511.
In the US, this situation was seen as a global race to gain leadership in the development
of clean energy technologies. As the newly elected President Obama said in 2011: “The
countries that lead the clean energy economy will be the countries that lead the 21st
century global economy12.”
Figure 1: US solar cell and manufacturing market share and global PV module shipments 1990-2010. Source: DOE, 201713.
Context in China
In China, the public support to solar PV started in 1990s, with a focus on electrification of
rural areas in China14. The Brightness Programme starting in 1996 was an umbrella
programme, which included the Township Electrification Programme (TEP) (2003-2004),
and the Village Electrification Programme15. The TEP included an objective of 20 MW of
installed solar PV and wind energy capacity, and 200 MW of small hydro power to provide
8
The White House (2011) Playing to Win: The Global Clean Energy Race. Available:
https://obamawhitehouse.archives.gov/sites/default/files/uploads/clean_energy_report_vpotus.pdf
9
Mints, P. (2012) The Solar PV Ecosystem, A Brief History and a Look Ahead. Renewable Energy World,
November, 2012. Available: http://www.renewableenergyworld.com/articles/2012/11/the-solar-pv-
ecosystem-a-brief-history-and-a-look-ahead.html
10
Long, K. (2017) Dirty Solar? Reuters, August 2011. Available:
http://blogs.reuters.com/muniland/2011/08/31/dirty-solar/
11
Department of Energy (2011) A Competition Worth Winning. Available:
https://energy.gov/articles/competition-worth-winning
12
https://obamawhitehouse.archives.gov/sites/default/files/uploads/clean_energy_report_vpotus.pdf
13
14
Gallagher, K. (2014) The Globalization of Clean Energy Technology
Lessons from China. Available: https://mitpress.mit.edu/books/globalization-clean-energy-technology
15
International energy Agency (IEA) (2013) Brightness Programme. Available:
https://www.iea.org/policiesandmeasures/pams/china/name-22668-en.php
6
electricity for more than 1000 towns and to 1.3 million people16. The central government
invested USD 240 million to provide the infrastructure, with the final aim of rural area
development and reduction of poverty 17.
The 11th Five-Year Plan (FYP, 2006-10)18 introduced a non-fossil energy target of 10% of
total energy consumption, which was almost achieved, reaching 8.6% in 2010. This
development was mainly achieved by rapidly growing wind energy and bioenergy. During
the 11th FYP period, renewable energy was set also as one of the technology priorities of
the R&D programmes. Although the Chinese PV industry depended on foreign technologies,
the Chinese government had launch programmes such as “PV industry with Chinese
characteristics”, and a strong support was provided to technology transfer and technology
cooperation from industrialised countries through purchasing manufacturing equipment,
transfer of complementary know-how, foreign direct investment by multinational firms and
the movement of skilled labour across borders19. At the same time, the China's state-
owned banks and local governments provided strong financial support for renewable
manufacturing industry, especially to emerging PV manufacturing that was considered as
among the strategic industries of the country. China's state-owned banks had given very
generous capital support to domestic PV manufacturers, and in 2010, majority of the global
solar industry investments came from Chinese government and state-owned investment
bank China Development Bank (CDB)20. Similarly, the local governments, encouraged by
the central government support, had begun offering very strong incentives for PV
manufacturing and prioritised PV industry over other manufacturing industries by offering
loans provided by local state-owned banks, tax reductions, research grants, cheap land,
energy subsidies and technological, infrastructure and personnel support 21. This created
unrestricted access to capital, although not necessarily with low cost22, and expansion
boom in the Chinese PV industry.
These government and local policies supporting investments led to a rapid development of
the Chinese PV industry, which quickly seized the global market potential of the PV, mainly
driven by generous feed-in tariffs in Europe. During the period of the 11th FYP, the solar
PV industry developed rapidly and became one of the country’s flagship industries
competing globally23. Chinese solar cell production grew rapidly, with the annual growth
rate exceeding 100% and in 2010, production of solar cells was around 10GW, accounting
for 50% of total global production. In 2010, more than 90% of the solar cell production
was however exported. At that time, the domestic PV was still in embryonic state and the
domestic installed PV capacity was less than 2% of the total global installed capacity
reaching 800 MW in 201024. The Chinese government had already however introduced
policies such subsidies for building-integrated photovoltaics and the Golden Sun
demonstration project. The PV was seen as a strategic sector for China’s social and
economic development, and promoting the solar PV industry was seen as essential to
guarantee domestic energy supply, establish a low-carbon society, and to promote
economic restructuring by fostering emerging industries.
Table 1: Drivers and barriers of the initiatives.
16
Martinot, E. (2010) Renewable power for China: Past, present, and future. Frontiers of Energy and Power
Engineering in China, September 2010. Available:
https://link.springer.com/content/pdf/10.1007%2Fs11708-010-0120-z.pdf
17
Ibid.
18
Zhang, S. et al. (2013) Interactions between renewable energy policy and renewable energy industrial
policy: A critical analysis of China's policy approach to renewable energies. Available:
http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.705.7471&rep=rep1&type=pdf
19
Urban, F. et al. (2016) Solar PV and solar water heaters in China: Different pathways to low carbon energy.
Renewable Energy Reviews, October 2016. Available:
https://www.sciencedirect.com/science/article/pii/S1364032116302416
20
Zhang, S. et al. (2013) Interactions between renewable energy policy and renewable energy industrial
policy: A critical analysis of China's policy approach to renewable energies. Available:
http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.705.7471&rep=rep1&type=pdf
21
Ibid.
22
NREL (2016) On the Path to the SunShot: Emerging Opportunities and Challenges in U.S. Solar
Manufacturing. Available: https://www.nrel.gov/docs/fy16osti/65788.pdf
23
12th Five-Year Plan for the Solar Photovoltaic Industry (non-official translation) Available:
http://www.americansolarmanufacturing.org/news-releases/chinas-five-year-plan-for-solar-translation.pdf
24
The Climate Group (2011) Delivering Lowcarbon Growth: A Guide to China’s 12t Five Year Plan.
7
Drivers Barriers
Political  US: Making the United States as  US: Changing priorities of
a global leader in developing and renewable energy and climate
manufacturing clean energy change policies.
technologies.  CN: Lack of public policy
 CN: Decreasing air pollution and supporting domestic PV
GHG emissions. installations.
Economic  US & CN: Huge global market  US: Loss of competitiveness

potential of solar energy. of domestic manufacturing
 CN: Chinese Government and industry.
the local governments provided  CN: Low level of domestic
large incentives for PV demand for PV products,
manufacturing (free/low cost because of high prices and
loans, tax reductions, cheap low incentives.
energy, land and infrastructure).  CN: Trade disputes with
 CN; Growing energy demand in European countries and the
China. United States.
Societal  US: Reduction in the need for  CN: Low awareness and
new conventional generation acceptance of PV technology.
capacity and the use of fossil
fuels (natural gas and coal).
 US: Reduction of the
environmental impacts (GHG
emissions, other pollutants,
water) of energy generation.
 US: Significant reduction in the
cost of electricity.
 US & CN: Potential for generating
new jobs.
 CN: Air pollution.
 CN: Lack of electricity
infrastructure in rural areas.
Technological  US: Strong trajectory of PV  US: The PV technology was
technology (material quality, cell not cost-competitive with the
and module designs, diamond conventional energy sources.
wafer sawing reducing material  US: The US PV manufacturing
loss of silicon wafers). was not able to compete with
 CN: Cost advantage of Chinese the low-cost manufacturers
PV cells. from China.
 US: The best solar resources
are located far from regions
with high-electricity demand
setting challenges to
electricity transmission.
 CN: Geographical remoteness
of PV supply and demand.
Lack of transmission network
capacity.
 CN: Under-developed
standards system in China,
and problems of uneven PV
product quality.
 CN: The Chinese PV industry
still lagged behind in many
technological areas (e.g.
polysilicon manufacturing and
manufacturing equipment for
PV cell manufacturing is
imported).
2.2 Strategic and operative objectives and milestones of the initiatives
Objectives of SunShot Initiative 2020 and updated objectives 2030
8
The SunShot initiative has been said to be building on the legacy of President Kennedy's
1960s "moon shot" goal, which laid out a plan to regain the country's lead in the space
race and land a man on the moon25. Analogically, the SunShot was set to accelerate and
drive innovations in design, manufacturing, installation and public perception of the solar
systems. The SunShot initiative was launched by the Department of Energy on 4 th February
2011. The main objective of the initiative was to reduce the total costs of solar energy
by 75%, thus making solar energy cost competitive with other forms of energy by the end
of the decade, making solar energy available for millions of users.
The initiative was launched as a part of larger goal to derive 80% of the country's electricity
from clean energy sources, including wind, solar, nuclear, clean coal and natural gas, by
2035 announced by President Barak Obama in January 2011 26. The new commitment to
support clean energy was backed-up by increasing clean energy technology funding by a
third compared to the funding in 2010, including more than doubling investments in
energy efficiency and a more than 85% increase in renewable energy investment. A part
of these investments was earmarked to support the “$1 a Watt” initiative to make solar
energy cost competitive (later renamed as SunShot Initiative). This cost reduction was
estimated to lead a wide diffusion of solar energy systems across the country. This in turn
was expected to increase American economic competitiveness and help the United States
regain leadership in the global market for solar photovoltaics. "America is in a world race
to produce cost-effective, quality photovoltaics. The SunShot initiative will spur American
innovations to reduce the costs of solar energy and re-establish U.S. global leadership in
this growing industry,27" said Secretary Chu. "These efforts will boost our economic
competitiveness, rebuild our manufacturing industry and help reach the President's goal of
doubling our clean energy in the next 25 years.28"
To ensure these additional investments, the President Obama called for ending the
approximately USD 4 billion annual tax subsidies provided to oil, gas and other fossil fuel
producers: “This is our generation’s Sputnik moment…We’ll invest in clean energy
technology – an investment that will strengthen our security, protect our planet, and
create countless new jobs for our people.”
In February 2011, the U.S. Energy Secretary Steven Chu announced additional details of
the Department of Energy's "SunShot" initiative. The goal was specified in the following
manner:
 75% reduction of the total costs of photovoltaic solar energy systems to achieve the
cost competitiveness at large scale with other forms of energy without subsidies before
the end of the decade29.
To achieve these goals, DOE was set to work closely with partners in government, industry,
research laboratories, and academic institutions across the country. The cost targets for
solar energy were set with the following details30:
 USD 0.10 per kilowatt hour for residential solar;
 USD 0.08 per kilowatt hour for commercial solar;
 USD 0.06 per kilowatt hour for utility-scale solar.
25
https://energy.gov/eere/solar/articles/doe-pursues-sunshot-initiative-achieve-cost-competitive-solar-energy-
2020
26
The White House (2011) Fact Sheet: The State of the Union: President Obama's Plan to Win the Future.
Available: https://obamawhitehouse.archives.gov/the-press-office/2011/01/25/fact-sheet-state-union-
president-obamas-plan-win-future
27
2020
28
Ibid.
29
2020
30
https://energy.gov/eere/solar/goals-solar-energy-technologies-office. Please note : The 2020 residential and
commercial targets were adjusted for inflation (to 2017 dollars), however the 2020 utility-scale target was
not adjusted for inflation as wholesale electricity prices have been relatively flat from 2010-2017.
9
Due to the rapid progress of the solar industry and having achieved majority of the initial
targets of the SunShot, the SETO has set new cost targets in 2017 for the upcoming
decade, which support greater energy affordability by cutting the cost of solar electricity
an additional 50% between 2020 and 2030. The SunShot 2030 targets for PV technology
are:
 USD 0.05 per kilowatt hour for residential PV;
 USD 0.04 per kilowatt hour for commercial PV;
 USD 0.03 per kilowatt hour for utility-scale PV.
Figure 2: SunShot goals 2020 and 2030 and progress made. Source: DOE, 2017 31.
The Solar Energy Technologies Office also set 2030 targets for concentrating solar power
(CSP) to enable the technology to be competitive. Combining CSP with thermal energy
storage directly addresses grid integration challenges related to the variability of solar
energy and allows solar-generated heat to be stored until electricity is needed, even well
after the sun sets.
 The target for CSP peaker plants, which have no more than six hours of energy storage,
is USD 0.10 per kilowatt-hour.
 The target for CSP baseload plants, which have a minimum of 12 hours of energy
storage, is USD 0.05 per kilowatt-hour.
31
Department of Energy (2017) Goals of the Solar Energy Technologies Office. Available:
https://energy.gov/eere/solar/goals-solar-energy-technologies-office
10
Figure 3: SunShot CSP goals 2020 and 2030 and progress made. Source: DOE, 2017 32.
In addition to the above described cost targets, SETO is working to address the challenges
related to reliably and securely integrating high penetrations of solar electricity into the
grid, including studying the integration of solar with energy storage, load control and other
distributed energy resources. Advances in these technologies combined with the PV and
CSP cost reduction targets is expected to enable “economically competitive solar to be
widely deployed across the country while contributing to the reliability and resilience of the
electricity grid33”. The activities of SunShot Initiative include34:
 Shorten the time between discovery of new solar photovoltaic and concentrating solar
power technologies and their commercialisation.
 Maintain U.S. leadership in solar technology innovation by improving efficiency and

reliability, and reducing production costs.
 Reduce installation and other soft costs, and open new markets for solar energy.
 Foster collaboration for utility-scale solutions and clear the way for high-penetration
solar.
 Strengthen the U.S. supply chain for solar manufacturing and commercialisation of
cutting-edge solar technologies.
 Invest in education, policy analysis, and technical assistance to remove critical barriers.
 Develop a well-trained workforce to foster US job creation in the solar industry.
Objectives of the Chinese 12th and 13th Five-Year Plans for solar energy
China's 12th Five-Year Plan (2011–2015) set a dedicated plan for solar energy. The aim of
the plan was to reduce the price of solar power and to increase the manufacturing
32
33
Ibid.
34
Department of Energy (2014) The SunShot Initiative: Making Solar Energy Affordable for All Americans.
Available: https://www.nrel.gov/docs/fy14osti/60491.pdf
11
of PV systems35. Other objectives were to increase R&D for key technologies,
developing new, advanced technology and manufacturing processes for PV, promoting
favourable policies for the domestic market and improving PV standards, product quality
inspection and certification systems. The plan highlights solar energy as one of seven
strategic emerging industries subject to specific government support, preferential
treatment, public planning and tight top-down control of the industry. The guiding
principles of the Chinese 12th FYP in PV sector was to implement and apply scientific
findings in industrial applications, and to seize the global opportunities created by the
transition of the energy systems and strengthening the Chinese PV industry
competitiveness. The plan also aimed at reducing the costs of PV power generation and
quality improvements of the PV products and production technologies. The plan set
economic, technology, innovation and cost targets for PV sector.
Table 2: Goals of the 12th Solar Energy Development Five-Year Plan (2011-2016). Source: 12th FYP for Solar Energy.
Development goals Description
Economic goals The 12th FYP period was targeted to maintain the growth of the PV
industry. The goal of the manufacturing industry along the PV value chain
was to meet the domestic demand and excel the global PV market. The
plan was providing support to major Chinese enterprises to grow and by
2015:
 The leading polysilicon enterprises were set to reach the goal of 50
000 metric tonnes annual production;
 The leading solar cell enterprises had the goal to reach the annual
capacity of 5 GW;
 Having one PV enterprise with annual sales revenue exceeding RMB
100 billion, 3-5 PV enterprises with annual sales revenue exceeding
RMB 50 billion, and 3-4 enterprises specialising in PV equipment
manufacturing with annual sales revenue exceeding RMB 1 billion.
The plan set ambitious goals for improving the quality of the PV
Technology goals manufacturing technologies and products. By 2015:
 The recovery rate of silicon tetrachloride, hydrogen chloride, and
hydrogen was set to be less than 98.5%, 99%, and 99%, respectively;
 The average total power consumption level lower than 120 kWh/kg;
 The conversion efficiency goals for monocrystal silicon cells was 21%,
for polysilicon cells 19%, and for amorphous silicon thin-film cells
12%;
 New types of thin-film solar cells will be industrialised;
 The domestic manufacturing rate of production equipment and
auxiliary materials for PV cells will reach 80%, and Chinese enterprises
will master key technologies involved in PV grid connection,
manufacturing of energy storage equipment, and system integration.
By 2015, the Chinese PV companies will have significantly enhanced
Innovation goals innovation capabilities and a number of flagship enterprises with
advanced core technologies will emerge, mastering all the key technology
and production methods in the PV industry. The standards system will
gradually improve. Chinese PV enterprises’ international influence will be
greatly enhanced. National key laboratories and inspection platforms will
be established by fully utilising the existing foundation.
By 2015, PV power generation will have a certain degree of economic
Targets for the Cost of competitiveness as the cost of PV modules will drop to 7000 RMB/kW,
PV Power Generation that of PV systems will drop to 13 000 RMB/kW, and that of PV power
generation will drop to 0.8 RMB/kW. By 2020, PV power generation will
become economically competitive as the cost of PV modules will fall to 5
000 yuan/kW, that of PV systems to 10 000 RMB/kW, and that of power
generation costs to 0.6 RMB/kW.
The current 13th Five-Year Plan (2016-2020) continues the support to solar energy
focusing on promoting the industrial application of next generation photovoltaics, and
coordination, acceleration and optimisation of the domestic renewable energy market and
35
Urban, F., Geall, S. and Wang, Y. (2016) Solar PV and solar water heaters in China: Different pathways
to low carbon energy. Renewable and Sustainable Energy Reviews 64 (2016) 531–542.
12
power transmission36. The 13th Five-Year Plan for Energy lowered the 2020 PV installed
capacity target from initially set 150 GW to 105 GW.
37
Table 3: Targets of the 13th Solar Energy Development Five-Year Plan (2016-2020). Source: IEA, 2017 .
Solar energy Target by 2020 Targeted costs reductions

technology
Solar PV At least 105 GW By 50% by 2020 in comparison to
2015 costs.
CSP 5 GW Reduction of feed-in tariffs (FITs) for
CSP to RMB 0.8yuan/kWh.
Solar thermal 800 million square meters of
installations
3 Resources and management
3.1 Governance and management model
SunShot Initiative coordination
The Office of Energy Efficiency and Renewable Energy (EERE) in the US Department
of Energy (DOE) is the central organisation focused on research and development of
renewable energy, energy efficiency, and sustainable transportation technologies. EERE’s
vision is “a strong and prosperous America that is powered by clean, affordable, and secure
energy”38. The mission of the EERE is to create and sustain American leadership in the
transition to a global clean energy economy. EERE acts as a node between the national
energy, economic, and environmental systems, and across industry and other stakeholder
organisations. EERE’s activities cover a range of renewable power technologies including
solar, wind, geothermal and water. Within EERE, the Solar Energy Technologies Office
(SETO) is the primary office that funds innovations in solar power and initiated the
SunShot Initiative39. SETO focuses on achieving the goals of the SunShot Initiative and
since the SunShot Initiative was announced in February 2011, the Solar Program has
funded more approximately 300 projects in the following areas: Photovoltaics (PV),
Concentrating solar power (CSP), Balance of systems costs (soft costs), and Systems
integration.
In addition to running the funding programmes, SETO works towards addressing non-
technical barriers preventing solar energy market uptake such as: updating codes and
standards, improving interconnection agreements among utilities and consumers, and
analysing utility value capacity credits for utilities40. The work of SETO is targeted to
support consumers, businesses, and utilities make more informed decisions when
considering renewable energy, and also facilitate the purchase of solar energy.
36
The 13th Five-Year Plan for Economic and Social Development of the People’s Republic of China (2016–
2020). Available: http://en.ndrc.gov.cn/newsrelease/201612/P020161207645765233498.pdf
37
International Energy Agency (2016) China 13th Solar Energy Development Five Year Plan (2016-2020).
IEA/IRENA Joint policies and measures database. Available:
https://www.iea.org/policiesandmeasures/pams/china/
38
Department of Energy (DOE) (2017) About the Office of Energy Efficiency and Renewable Energy. Available:
https://energy.gov/eere/about-office-energy-efficiency-and-renewable-energy
39
Department of Energy (DOE) (2017) About the Solar Energy Technologies Office. Available:
https://energy.gov/eere/solar/about-solar-energy-technologies-office
40
Department of Energy (DOE) (2017) The SunShot Initiative. Available:
https://energy.gov/eere/solar/sunshot-initiative
13
Figure 4: Coordination of SunShot Initiative. Source: DOE, 2017.
Coordination of solar energy R&D in China
The Chinese Ministry of Science and Technology is the main responsible of the solar
R&D in the country, and sets a national vision for R&D, and designs and implements the
policies and strategies to achieve the targets set41. The MOST is responsible of the process
of drafting the Five-Year Plans for individual technology areas, one of which is solar, and it
coordinates the financing and administrative tasks of the plans together with other
governmental organisations.
Figure 5: Governance of Chinese Solar Energy Research. Source: Ball et al., 2017.
3.2 Financing model
41
Ball, J. et al. (2017) The New Solar System China’s Evolving Solar Industry and Its Implications for
Competitive Solar Power in the United States and the World. A Joint Initiative of Stanford Law School and
Stanford Graduate School of Business, March 2017.
14
DOE has spent approximately USD 2.3 billion on R&D to advance solar technologies42, and
during the first six years of SunShot Initiative (2011-2016) total budget of EERA’s SETO
programme on solar energy research has been USD 1.6 billion (EUR 1.3 billion) and
close to 300 projects have been financed.
Table 4: Solar energy technology budget allocation. Source: Department of Energy, 2017.
Fiscal Year 2011 2012 2013 2014 2015 2016 2017

Annual enacted budget 259.6 289.0 269.1 257.1 233.0 241.6 285.1*
(USD million)
*Requested budget.
In 2016, the annual funding provided by SETO accounted for approximately 50% of
all public RD&D for PV technology development in the US43. In addition to the SETO,
the Department of Energy’s Office of Science and the Advanced Research Projects Agency-
Energy (ARPA-E), the National Science Foundation, the Department of Defense, the
National Aeronautics and Space Administration (NASA), and states such as California, New
York, Florida, and Hawaii also fund solar R&D.
Although SETO has announced the new 2030 targets for the SunShot Initiative in
September 2017, its future is somewhat uncertain in terms of continuity of funding solar
research at its current pace. The Office of Energy Efficiency and Renewable Energy, which
includes activities of SETO and SunShot Initiative, is subject to face a 70% or USD 1.4
billion budget cut, and the ARPA-E, a key actor in bringing cutting-edge energy and grid
technologies to market, would be cut completely44.
The Chinese National Development and Reform Commission (NDRC), the main
economic coordinator of the country and its Five-Year Plans has said that the solar power
will receive altogether 1 trillion yuan (USD 150 billion) of spending in the 2016 to 2020
period45. No further details of the spending allocation are disclosed or available (e.g. how
much of this budget is dedicated to R&D).
3.3 Key actors involved in the initiative
About 40% of the SunShot funding is allocated to national laboratories. The primary
laboratory for renewable energy is the National Renewable Energy Laboratory in Golden,
and other important laboratories include: Sandia National Lab, Lawrence Berkeley Lab,
Pacific Northwest Lab, Argonne Lab, and Oak Ridge Lab 46.
The National Center for Photovoltaics (NCPV) at the National Renewable Energy
Laboratory (NREL) is the largest recipient of PV research funding from SunShot. The NCPV
focuses on technology innovations that drive industry growth in US PV manufacturing, and
it is a central resource in PV research, development, deployment, and outreach.47
The Chinese government, through its main research-and-development arm, the

Ministry of Science and Technology (MOST), uses multiple programmes to implement
the development goals laid out in the Five-Year Plans48. These programmes have
established solar-specific labs and research centres to work aligned with the Five-Year Plan
goals. Apart from research sector beneficiaries, the programmes have focused supporting
42
Department of Energy (216) SunShot Fact Sheet 2016. Available:
https://energy.gov/sites/prod/files/2016/06/f32/SunShot-factsheet-6-10_final-508.pdf
43
International Energy Agency (IEA) (2017) National Survey Report of PV Power Applications in the United
States 2016.
44
Greentech Media (2017) DOE’s SunShot Awards $46M for Solar Tech-to-Market Research. Available:
https://www.greentechmedia.com/articles/read/doe-sunshot-46-million-grants-solar-technology-market-
research#gs.ZoM5iwI
45
Reuters (2017) China to plow $361 billion into renewable fuel by 2020. Available:
https://www.reuters.com/article/us-china-energy-renewables/china-to-plow-361-billion-into-renewable-
fuel-by-2020-idUSKBN14P06P
46
Panjwani, L. (2017) Department of Energy ‘Sunshot’ Aims to Accelerate Solar R&D. R&D Magazine, July 2017.
Available: https://www.rdmag.com/article/2017/07/department-energy-sunshot-aims-accelerate-solar-r-d
47
https://energy.gov/sites/prod/files/2016/02/f29/PV%20Fact%20Sheet-508web.pdf
48
15
technological advancements in Chinese solar energy industry and the leading PV
manufacturing companies are among the key beneficiaries of the programmes.
3.4 Monitoring system and evaluation of the initiative
The cost targets set by the SunShot are measured in “levelised cost of energy” (LCOE),
which determines the cost for electricity produced by solar energy systems 49.
Furthermore, it is specified that: “LCOE is based upon the sum of the upfront installation
price and the present value of the lifetime operational expenses (in USD) divided by the
net present value of the power produced (kilowatt hours or kWh). The assumptions that
underlie the 2010 and 2016 LCOE estimates for PV, and the associated SunShot targets,
are based upon systems installed in an average solar resource location for the United
States (as represented by Kansas City, Missouri), and do not include the federal investment
tax credit (ITC) or state or local incentives. The model results shown are in terms of 2016
cents per kWh.”50
The background work on the LCOE benchmarks and targets are based on models
developed by the National Renewable Energy Laboratory (NREL), and the annual
installation price are published in NREL's yearly “U.S. Solar Photovoltaic System Cost
Benchmark51” reports. Further details and the models specifying the LCOE calculations are
published in the peer-reviewed journal “Progress in Photovoltaics”, and as part of the “On
the Path to SunShot” publications52.
SETO launched the “On the Path to SunShot” technical report series in early 2015 in
collaboration with the National Renewable Energy Laboratory (NREL) and with
contributions from Lawrence Berkeley National Laboratory (LBNL), Sandia National
Laboratories (SNL), and Argonne National Laboratory (ANL). Eight reports have been
published to analyse the progress made so far, and the key aspects that must be addressed
to achieve the SunShot Initiative’s goals. These reports focus on the areas of grid
integration, technology improvements, finance and policy evolution, and environmental
impacts and benefits.53
In addition, the DOE supports critical data gathering and analysis to track solar market
development, benchmark key non-hardware system costs (such as permitting,
interconnection, and inspection), and provide independent insight on emerging issues 54.
DOE publishes timely analyses on solar economics, installation trends, labour market
trends, and innovative financing approaches, among other topics.
NREL also contributes towards SunShot goals by systematically analysing the technology
progress of PV cell efficiency. Since January 1993, “Progress in Photovoltaics” has
published a listing twice a year of the highest confirmed efficiencies for a range of
photovoltaic cell and module technologies 55. The tables are commonly agreed,
standardised benchmark of the current state-of-the-art of the PV technology used as a
reference study at the global-scale.
49
50
Department of Energy (2017) How We Measure. Available: https://energy.gov/eere/solar/goals-solar-energy-
technologies-office
51
The latest report is available: https://www.nrel.gov/docs/fy17osti/68925.pdf
52
Ibid.
53
Department of Energy, Solar Energy Technologies Office (2017) On the Path to SunShot. Available:
https://energy.gov/eere/solar/path-sunshot
54
Department of Energy (2017) Market Transformation. Available:
https://www.nrel.gov/docs/fy12osti/52479.pdf
55
Green, M. et al (2017) Solar cell efficiency tables (Version 50). Progress in Photovoltaics, June 2017.
Available: http://onlinelibrary.wiley.com/doi/10.1002/pip.2909/abstract,
16
Figure 6: Best research-cell efficiencies. Source: NREL, 2017 56
3.5 Level and type of citizen engagement in the initiative
SunShot Initiative is a top-down set research and technology development strategy that
does not directly involve citizens. Citizens are however informed about the advances of
SunShot, the different funding opportunities are transparently available through the
SunShot website and anyone can subscribe to receive a weekly newsletter.57 In addition,
updates of the state of solar energy technology presentations conducted by the National
Renewable Energy Laboratory (NREL) are made available four times per year on the
website of the SunShot initiative58. SETO also holds workshops, which provide feedback on
the SunShot initiative and help the Department of Energy to identify challenges and
opportunities related to the Sun Shot programme. For example, during the 2016 SunShot
Strategy Forum was organised.
There is not much information available about how citizens are involved in Chinese Solar
Energy policies. It seems however that the citizens are in favour of clean energy policies
and see them as a solution for air and water pollution problems affecting China59. According
to a survey of 3000 residents of Chinese cities, up to 96% of the respondents think that
green energy would provide a solution to the air pollution. “Compared with those overseas,
Chinese consumers show stronger willingness to purchase green power, and are ready to
pay considerably higher fees for it. However, there are currently no options for consumers
in China to select their source of supply.60” Others claim that small-scale solar installations,
such as residential solar water heaters, have been less noticed contributors to Chinese
energy sector transformation61. Citizen-driven solar energy installations have gain
popularity especially in rural areas of China, and it has been estimated that they were used
by over 30 million households in 201462.
4 Policy instruments and wider policy-mix used for implementing the initiative
56
Margolis, R. et al. (2017) Q4 2016/Q1 2017 Solar Industry Update. NREL/PR-6A20-68425, April, 2017.
57
Department of Energy (2017) Newsletters. Available: https://energy.gov/eere/solar/solar-newsletters
58
Department of Energy (2017) Quarterly Solar Industry Update. Available:
https://energy.gov/eere/solar/quarterly-solar-industry-update
59
Energy Transition (2017) China’s citizens overwhelmingly want renewable energy. February 2017. Available:
https://energytransition.org/2017/02/chinas-citizens-overwhelmingly-want-renewable-energy/
60
Ibid.
61
Urban, F. (2014) Small-scale solar is a big player in China’s clean energy mix. Available:
https://www.chinadialogue.net/article/show/single/en/7580-Small-scale-solar-is-a-big-player-in-China-s-
clean-energy-mix
62
Ibid.
17
4.1 Description of the R&I policy instruments used for implementing of the initiative
SunShot R&I policy instruments
The SunShot Initiative issues competitive funding calls that provides funding for
selected research projects aimed at transforming the ways the solar energy is generated,
stored, and utilised, having the overall target to make solar power more affordable and
accessible.63
The research, development, and demonstration activities fall into five broad categories
(presented in the table below) forming a sub-programme. Each of the sub-programmes
issues funding opportunity announcements (FOAs) developed through a collaborative
process but always targeted to achieve the goals of the SunShot. Adhering to an open,
highly competitive solicitation process, these funding opportunities encourage collaborative
partnerships among industry, universities, national laboratories, federal, state, and local
governments, and non-government organisations.64 The received FOA applications are
subject to a rigorous peer-review based selection process through which the projects are
selected for negotiation to receive DOE funding. After the successful completion of a
negotiation process, including collaboration on a statement of project objectives,
milestones, and budgets, the projects are started. 65 Since the launch of SunShot, close to
300 projects have been funded and currently there are 253 ongoing projects. The list of
projects is available at the SunShot webpage including an interactive map visualising the
locations at which the research activities are conducted66.
Table 5: SunShot sub-programmes. Source: DOE, 2017.
Sub-programme Description
Photovoltaic (PV) Research The sub-programme supports the research and development of PV
and Development technologies to improve efficiency, durability, and reliability, as well
as lower material and process costs to reduce the levelized cost of
solar generated electricity. The PV portfolio includes research
directed toward reaching a levelized cost of energy of USD 0.03 per
kilowatt-hour. The photovoltaics sub-programme is targeted to
industry, academia, national laboratories, and other government
agencies to advance solar PV technology. The sub-programme
includes activities from early-stage solar cell research to technology
commercialisation, including work on materials, processes, and
device structure and characterisation methods. DOE issues
competitive solicitations, or funding calls, to provide funding to
research projects addressing the entire PV technology pipeline to
advance towards the SunShot Initiative targets.
Concentrating Solar Power The sub-programme supports research and development of CSP
(CSP) technologies that reduce the cost of solar energy with systems that
can supply solar power on demand, even when there is no sunlight,
using thermal storage. The projects funded demonstrate new
concepts in the collector, receiver, thermal storage, heat transfer
fluids, and power cycle subsystems, as well as technologies that will
lower operations and management costs. The CSP sub-programme
is most interested in transformative concepts with the potential to
break through existing performance barriers, such as efficiency and
temperature limitations.
Systems Integration The systems integration sub-programme works to enable the

widespread deployment of safe, reliable, and cost effective solar
energy on the nation’s electricity grid by addressing the associated
technical challenges and regulatory requirements. The systems
integration team focuses on the research and development of cost
effective technologies and solutions that enable the sustainable and
63
64
Ibid.
65
66
https://energy.gov/eere/solar/solar-projects-map
18
holistic integration of hundreds of gigawatts of solar generation into
the power grid.
Soft Costs The soft costs sub-programme works to develop strategies and
solutions that directly reduce the costs and barriers to solar access
and deployment. It supports leaders at the local level in developing
innovative strategies and solutions that make going solar faster,
cheaper, and easier. DOE-funded programmes build networks to
support the development and diffusion of proven and effective
programs that establish clear pathways for sustainable solar
deployment across the USA, for the benefit of all Americans.
Innovations in This sub-programme develops and validates breakthrough, early-

Manufacturing stage technology, software, and business models to strengthen
Competitiveness early-stage concepts and move them toward readiness for greater
private sector investment and scale-up to commercialisation.
Technology to market targets two significant funding gaps: funding
of initial proof of concept and the pre-commercial stage. The sub-
programme funds projects that address innovations in solar, energy
grid, technology performance, supply chain, and manufacturing. The
sub-programme issues competitive solicitations for projects that
target two known funding gaps in bringing new technologies to
market: those that occur at the prototype commercialisation stage,
as well as those at the commercial scale-up stage. Financial awards
allow recipients to help advance the SunShot goals by translating
innovative ideas from the proof of concept stage to market adoption.
The funding dedications to each sub-programme area are described in Figure 7 below.
Figure 7: Budget breakdown for DOE’s Solar Energy Technologies Office (SETO) 2010-2016. Source: MIT, 2015 67 (Please note
that SunShot was launch in 2011 and that 2016 figures correspond to requested budget).
The budget dedication has shifted away from technological development of PV and CSP
technologies towards reducing Balance of System soft costs (associated to non-hardware
costs of installation and grid connection) and fostering manufacturing competitiveness. In
2010, 80% of the budget of SETO was dedicated to pure technological development
whereas in 2016 PV and CSP R&D received only 42% of the total budget 68, as it can be
seen from Table 6 below. This can be advocated both to advances of PV and CSP
67
MIT (2015) The Future of Solar Energy. Available: https://energy.mit.edu/wp-
content/uploads/2015/05/MITEI-The-Future-of-Solar-Energy.pdf
68
Department of Energy (2017) Solar Energy Technologies Office, FY 2016 Budget At-A-Glance. Available:
https://energy.gov/sites/prod/files/2015/03/f20/fy16_seto_at-a-glance.pdf
19
technologies, and on focusing the public RTD on achieving the cost reduction targets set
by the SunShot Initiative.
Table 6: SunShot budget by sub-programme in 2016. Source: DOE, 2017.
Sub-programmes Funding in 2016 (USD Share %

million)
Photovoltaic R&D 53.2 22.0%
Concentrating Solar Power 48.4 20.0%
Systems Integration 52.4 21.7%
Balance of Systems/Soft Cost 34.9 14.4%
Reduction
Innovations in Manufacturing 43.5 18.0%
Competitiveness
National Renewable Energy Laboratory 9.2 3.8%
Site-Wide Facility Support
Total 241.6 100.0%
Accordingly, only approximately 20% of the SunShot budget was allocated to universities,
whereas both industry and National Research Laboratories received close to 40% of the
annual budget in 2013 (see the figure below)69.
Figure 8: Funding allocation to university, National Laboratories and industry in 2013. Source: MIT, 2017.
It has been argued that after the launch of SunShot, the public funding of solar energy has
been too dedicated to applied research. “In recent years, DOE has rebalanced the
distribution of federal funding for solar RD&D, providing increased resources for areas
where the industry should be motivated and well positioned to innovate, even absent public
support”70. It seems however that the new focus of SunShot is reversed back to basic
research. Currently, the DOE is looking beyond SunShot’s 2020 goals with a new expanded
2030 vision, while continuing research to drive down costs, new funding programs will
focus on a broader scope research priorities, which includes early-stage research to
address solar energy’s critical challenges of grid reliability, resilience, and storage. “With
the impressive decline in solar prices, it is time to address additional emerging challenges,”
was said by Daniel Simmons, Acting Assistant Secretary for Energy Efficiency and
69
70
20
Renewable Energy71. “As we look to the future, DOE will focus new solar R&D on the
Secretary’s priorities, which include strengthening the reliability and resilience of the
electric grid while integrating solar energy. 72”
The first indications of the new focus were announced in September 2017 including USD
82 million to be dedicated to early-stage research in two areas73:
 Concentrating Solar Power (CSP): Up to USD 62 million dedicated to support advances

in CSP technologies to enable on-demand solar energy. CSP technologies use mirrors
to reflect and concentrate sunlight onto a focused point where it is collected and
converted into heat. This thermal energy can be stored and used to produce electricity
when the sun is not shining or integrated into other applications, such as producing
fresh water or supplying process heat;
 Power Electronics: Up to USD 20 million is dedicated to early-stage projects to advance

power electronics technologies. Such innovations are fundamental to solar PV as the
critical link between PV arrays and the electric grid. Advances in power electronics will
help grid operators rapidly detect problems and respond, protect against physical and
cyber vulnerabilities, and enable consumers to manage electricity use.
R&D policy instruments of Chinese solar energy policy
In China, the Solar Energy R&D has been supported by a dedicated technology
development Five-Year Plan, since the 11 th FYP period. Among various publicly-funded
research and technology programmes, the "863" and "973" programmes, have provided
most direct support to renewable energies. The programmes fund research at different
types of institutions, including universities, research institutes, and companies, and in all
of the programmes, solar is just one of many targeted technologies.74
Table 7: Key R&D programmes supporting Chinese solar energy development. Source: MIT, 2015.
Programme Description
National Natural Science The NNSFC supports early-stage and novel research conducted in
Foundation of China universities and research institutes. NNSFC grants typically range
(NNSFC) between USD 75 000 and USD 100 000, and are applied by individual
researchers. During recent years, NNSFC research grants have
focused on emerging PV technologies.
National Basic Research The programme was designed to support large-scale basic research
(973) Programme projects with significant potential impact to national economy.
Examples of PV technologies supported through 973 Programme
include amorphous silicon and high-efficiency black silicon
technologies.
National High-Tech R&D This programme focuses on closer-to-market technologies and is
(863) Programme targeted to fund initiatives with high likelihood to have a commercial
application. The 863 Programme had higher impetus in PV research
during the 11th FYP, when the MOST started to promote it to company
participants, and to favour applications that involved participants from
research and industry in order to promote the transition from the
laboratory stage to market.
State Key Lab (SKL) and Through these programmes, the MOST allocates long-term funding for
State Engineering and research institutions with strong track record and funds R&D in
Technology Research strategic areas for Chinese economy. Typically, the projects funded
Center (SETRC) under these programmes have duration of five years, and the funding
programmes is often renewed for a 2nd and 3rd period.
There are two solar technology focused SKLs: the State Key
Laboratory of PV Science and Technology, located west of Shanghai in
the Jiangsu Province city of Changzhou, at PV manufacturing company
Trina’s headquarters; and the State Key Laboratory of Photovoltaic
71
Department of Energy (2017) Energy Department Announces Achievement of SunShot Goal, New Focus for
Solar Energy Office. Available: https://energy.gov/articles/energy-department-announces-achievement-
sunshot-goal-new-focus-solar-energy-office
72
Ibid.
73
Ibid
74
21
Materials and Technology, located southwest of Beijing in the Hebei
Province city of Baoding, at PV manufacturing company Yingli’s
headquarters. Trina and Yingli manage the SKLs, and they employ,
with the support of the MOST, researchers and staff who conduct
research at the SKLs. In addition, there are three solar-related
SETRCs: the State Photovoltaic Engineering and Technology Research
Centre; the State PV Tooling Engineering and Technology Research;
and the State Photo-Electronic Crystalline-Material Engineering and
Technology Research Centre.
In addition to the national SKLs and SETRCs, various Chinese
provinces have their own key research and technology centres
dedicated to solar energy research.
National Science and This programme is dedicated to commercialisation of technologies.
Technology Infrastructure Within the solar industry, tool manufacturers are common funding
Programme receivers.
China Torch Programme This programme allocates funding to supporting activities that
contribute to the commercialisation of solar technologies such as
industrial parks and solar product quality testing.
Thousand-Talent This programme is dedicated to search and recruitment of research
Programme experts to the Chinese organisations from around the world. Between
2008 and 2014, 4180 researchers (mostly Chinese by origin) have
been recruited from abroad. It has been argued that this programme
has been instrumental for developing solar research in China.
4.2 Connections with other policies
Federal and state-level renewable energy policies in the US
The Energy Policy Act (EPA, 2005)75 addresses energy production in the United States,
and provides the overarching legal framework for energy generation, including the
following areas of action: (1) energy efficiency; (2) renewable energy; (3) oil and gas; (4)
coal; (5) Tribal energy; (6) nuclear matters and security; (7) vehicles and motor fuels,
including ethanol; (8) hydrogen; (9) electricity; (10) energy tax incentives; (11)
hydropower and geothermal energy; and (12) climate change technology.
In practice, the energy policies are enacted and enforced at the local, state, and federal
levels resulting to very complicated and interconnected framework. The following text
presents the main policy initiatives, namely electric grid modernisation and different types
of incentive measures in place to accelerate the energy transition towards renewable
energy sources.
 The Grid Modernisation Initiative (GMI) 76 targets the creation of the modern grid
of the future, with better cost-efficiency, resilience, reliability, security and flexibility of
network infrastructure, allowing incorporation of electricity generated from renewable
energy sources. GMI is a cross-DOE initiative, with primary funding support coming
from the Office of Electricity Delivery and Energy Reliability and Office of Energy
Efficiency and Renewable Energy, and the Office of Energy Policy and Systems
Analysis providing policy recommendations. DOE National Laboratories are
participating across GMI’s technology areas in a coordinated strategic partnership called
the Grid Modernisation Lab Consortium (GMLC).
 Federal renewable energy production tax credit (PTC) and investment tax
credit (ITC)77,78. In December 2015, the ITC and PTC, the key tax-incentives for
75
Environmental Protection Agency (2017) Summary of the Energy Policy Act.
Available:https://www.epa.gov/laws-regulations/summary-energy-policy-act
76
Department of Energy (2017) About grid modernization initiative. Available: https://energy.gov/under-
secretary-science-and-energy/about-grid-modernization-initiative
77
Summarised from : Intersessional Panel of the United Nations Commission on Science and Technology for
Development (CSTD) (2017) Contribution of the United States of America to the CSTD 2017-18 priority
theme on ‘The role of science, technology and innovation to increase substantially the share of renewable
energy by 2030’, November, 2017. Available:
http://unctad.org/meetings/en/Contribution/CSTD_2018_IPanel_T1_RenewableEnergy_con13_USA_en.pdf
78
Department of Energy (2017) https://www.energy.gov/epsa/downloads/quadrennial-energy-review-second-
installment
22
renewable energy installations, were both extended by five years through 2021 and
2019, respectively with each tax credit on a different declining schedule. These
incentives are designed for exclusive use by entities that pay federal taxes and thus
other entities like municipal utilities and cooperative utilities are falling out of the scope
of the tax credit system. As a result, independent developers have played only a
subordinate role in the solar energy deployment.
 Public Utility Regulation Policies Act (PURPA)79 was established in 1978, due to
the energy crises and high oil price scenarios. It was aimed to create a market for
power from non-utility power producers. Before PURPA, only utilities could own and
operate electric generating plants. PURPA sets rules for utilities to buy power from
independent companies that can produce power for less than what it would cost for the
utility to generate the additional power. Because the avoided (marginal) cost is higher
than the utilities average cost of electricity generation, projects using renewable energy
or high-efficiency fossil fuel power may be cost competitive.
 State-level policies:80
‒ Currently 29 states have Renewable portfolio standards (RPS) policies in place,

and they are considered to be key drivers of renewable energy growth. The RPS
require utilities or other electricity providers to meet a minimum portion of load with
qualifying forms of renewable energy. The rules vary from state to state, and each
state have defined their own targets, and timeframes. California and Texas are the
leading states when it comes to renewable energy initiatives. California’s Renewables
Portfolio Standard have resulted in a requirement for California’s electric utilities to
have 50% of their retail sales derived from renewable energy sources by 2030. The
RPS in Texas are part of public policy for wind energy, which mandates a target of
10 000 MW of renewable energy capacity by 2025.
‒ Net metering is another measure that many states have applied to accelerate the
energy transition. “Net metering is a rate mechanism wherein customers with on-site
generation like rooftop solar are charged for the value of their net consumption
(electricity consumed less electricity produced by solar), crediting on-site generation
at the full retail rate”81. Currently, 41 states have a net metering policy, facilitating
electricity generation from renewable energy sources, supporting deployment of a
new technology, and providing consumers the option of generating their own power.
‒ States can also allow third-party ownership models for financing renewable
energy82, such as solar leases or residential power purchase agreements. These
models allow the use of tax incentives more extensively than what homeowners can
otherwise realise, ultimately reducing the up-front costs of a photovoltaic (PV)
system. As a result, these third-party models are attractive alternatives to direct
ownership of a residential PV system but require states to pass enabling legislation
to allow them to happen.
China: 12th and 13th Five-Year Plans
The green economic transition was launch officially in 2011 with the 12th Five-Year Plan
(2011-2015). The plan introduced carbon intensity reduction target for the first time, low
carbon industry policy emission trading scheme (ETS), as well as massive investments in
79
Summarised from: Intersessional Panel of the United Nations Commission on Science and Technology for
Development (CSTD) (2017) Contribution of the United States of America to the CSTD 2017-18 priority
theme on ‘The role of science, technology and innovation to increase substantially the share of renewable
energy by 2030’, November, 2017. Available:
http://unctad.org/meetings/en/Contribution/CSTD_2018_IPanel_T1_RenewableEnergy_con13_USA_en.pdf
80
Ibid.
81
Department of Energy (2017) Quadrennial Energy Review https://www.freshlawblog.com/files/2017/11/DOE-
Jan-2017-Quadrennial-Energy-Review.pdf
82
Department of Energy (2017) Renewable energy: Distributed generation policies and programmes. Available:
https://energy.gov/eere/slsc/renewable-energy-distributed-generation-policies-and-programs
23
new energy sources83. At the time of launching the 12th FYP one major obstacle was that
solar PV was still very expensive for the domestic consumers and the general social
acceptance and awareness was at very low level. China's government therefore launched
further incentive policies to boost PV domestic market expansion, particularly to expand
the PV output through Feed-In Tariffs (FIT) for distributed PV generation including
new regulations on grid connection, demonstration zones for distributed PV and a price
leverage for healthy development of the PV industry 84.
These incentives led to impressive growth of solar energy generation in China, reaching 43
GW of installed capacity by the end of 2015. For the first time, China had the world largest
installed solar PV capacity. The rapid growth of installations however set challenges for
connecting the capacity to the existing power grid and led to high levels of curtailment.
The 13th Five-Year Plan launched in 2016 set ambitious target to reach 110 million kilowatts
of installed solar power capacity, of which, photovoltaic power generation should be more
than 105 million kilowatts. The 13th Five-Year Plan introduces some novelties and the focus
is geared even more towards distributed solar generation. Whereas the 12th FYP targeted
to rapid take-up of PV mainly in large-scale PV plants, the new plan targets distributed
forms of PV85:
 The feed-in tariffs (FIT) are continued, although new restrictions have been
introduced and overall the level of FIT have been reduced significantly in order to pace
down the PV installation rate.
 Two programmes initially introduced in 2015 are continued.
‒ Poverty Alleviation Programme aims to provide PV panels to 2.8 million

households, generating 3000 RMB of additional income per household.
‒ Top Runner Programme is an annual, auction-based tender programme for
projects using only high-efficiency modules and advanced technologies. It is aimed
to enhance the quality of the installed PV systems. It has been said that the
programme is pushing the industry to mass market high-performance solar cells so
far used mainly in high-tech products like satellites86. The goal is to add 8-10 GW of
high efficiency solar capacity in 2017.
Table 8: Main measures of Chinese 13th Five-Year Plan. Source: IEA, 2016.
National PV Description
programs
Standard FIT “Build  Annual national plan for FIT projects for the year, with capacity/quota
Plan” for utility-scale for each province. The following categories of FIT projects are not
and distributed PV restricted by quota: 1) distributed PV; 2) PV for self-consumption; 3) PV
in 6 highly populated cities including Beijing, Shanghai and Chongqing.
Top 
Runner Annual, auction-based tender programme for projects using high-
Programme efficiency modules and advanced technologies. Providing incentives for
the Chinese PV manufacturing sector to invest in new and innovative
technologies. There are two parts to the Top Runner Programme:
 1) A policy component including minimum performance parameters for
PV cells, modules and inverters eligible to be a Top Runner component;
 2) A project component where tenders that utilise exclusively Top Runner
qualified components. This is expected to lead the PV manufacturers to
race after quality improvements, instead focusing on price competition.
83
Ng, S. et al. (2016) Pulling ahead on clean technology China’s 13th five-year plan challenges Europe’s low
carbon competitiveness. E3G Briefing Paper, March 2016. Available:
https://www.e3g.org/docs/E3G_Report_on_Chinas_13th_5_Year_Plan.pdf
84
Urban, F. et al. (2016) Solar PV and solar water heaters in China: Different pathways to low carbon energy.
Renewable Energy Reviews, October 2016. Available:
85
Gosens, J. et al. (2017) China’s next renewable energy revolution: goals and
mechanisms in the 13th Five Year Plan for energy. Energy Science and Engineering. Available:
http://onlinelibrary.wiley.com/doi/10.1002/ese3.161/pdf
86
Meng, M. and Gloystein, H. (2017) With high-performance cells, China takes aim at high-end solar market.
Available: https://www.reuters.com/article/us-china-solar-cost-analysis/with-high-performance-cells-china-
takes-aim-at-high-end-solar-market-idUSKCN1BP0X6
24
Poverty Alleviation
 PV projects under this programme are obligated to channel a portion of
Programme project profits towards bolstering the income of poor households.
4.3 Key turning points of the initiative and policy adaptation measures
Major changes / turning points Description of the flexibility mechanism / policy

of the initiative adaptation measures
US: Rapidly declining PV cell and US: Focus of SunShot project funding allocation was geared
module global market prices in more towards applied research and Balance of System “soft
2013-2016. costs” (i.e. costs related to installation, grid connection
etc.).
US: Achievement of the utility scale US: New targets for 2030 have been introduced.
PV LCOE target in 2017, three years
ahead of schedule.
CN: Introduction of the green CN: The policy support prior 2011 was focused on PV
energy targets in 2011 with the 12th manufacturing industry scale-up and providing support for
FYP. exportation-oriented industry. The 12th FYP introduced
green energy and emission reduction targets for the first
time, as well as massive investments in new energy
sources, indicating a shift towards a holistic policy-mix
supporting both domestic R&D and manufacturing, as well
as domestic demand for solar energy.
CN: Challenges in grid-connection CN: Since 2015, the policy has included a dedicated support
and electricity transmission. to high-quality PV and stimulating distributed PV power
generation, along-side with large-scale PV installations.
5 Realised or expected outputs, outcomes and impacts
5.1 Outputs, outcomes and impacts
Innovation and technology acceleration
 DOE’s solar technology research activities have led to new knowledge creation,
including an estimated 274 patent families87. SunShot has enabled the US to maintain
its leadership position in PV R&D. For example, over 50% of the world’s PV cell
efficiency records on the National Renewable Energy Laboratory’s chart were supported
by the PV program and its predecessors 88. In 2014, the National Renewable Energy
Laboratory (NREL) designed and developed a four-junction cell using metamorphic
layers to account for strain induced mismatched lattice constants that achieved a world
record of 45.7% efficiency. SunShot’s PV research has also inspired the use of new
module materials and designs ensuring that the industry has options for expanding
lifetime and increasing reliability89.
 However, it has been said that China has been able to catch-up significantly and has
been able to improve the quality of solar energy manufacturing and products through
systematic R&D activities funded under the Solar Energy Five-Year Plans. It has been
estimated that China has now become the global leader in PV-related patent filings90
87
The US Department of Energy (DOE) (2016) The SunShot Initiative: Making Solar Energy Affordable for All
Americans. Available: https://energy.gov/sites/prod/files/2016/06/f32/SunShot-factsheet-6-10_final-
508.pdf
88
https://energy.gov/eere/solar/photovoltaics-research-and-development
89
Gay, C. (2017) Solar In 2030: Making The New SunShot Vision A Reality. Available:
https://issues.solarindustrymag.com/article/solar-2030-making-new-sunshot-vision-reality
90
http://www.wipo.int/edocs/pubdocs/en/wipo_pub_944_2017.pdf
25
and the leading Chinese manufacturers are competing in the same level with the US in
emerging solar energy technologies such as perovskite and organic solar cells91.
Cost of solar energy
In September 2017, the DOE announced that the SunShot Initiative has achieved the 2020
utility-scale solar cost target set, three years earlier than planned 92. Largely due to rapid
cost declines in solar photovoltaic (PV) hardware, the average price of utility-scale solar is
now 6 cents per kilowatt-hour (kWh) meeting the target set back in 2011 93. Figure 9 below
indicates the cost reductions by different cost components.
Technological advances have been primary drivers of the cost declines since 2011 and
especially the costs of solar modules have decreased significantly in recent years. This can
be attributed to efficiency improvements arriving from enhanced material quality and
advanced cell and module designs, as well as the development of diamond wafer sawing,
which dramatically reduces material loss in the making of silicon wafers.94
Figure 9: NREL PV system cost benchmark summary (inflation adjusted), 2010–2017. Source: NREL, 201795.
It is however also recognised that the module prices have declined substantially over the
past year due to an oversupply. The remaining areas of improvement are found from “soft”
costs like labour, permitting, interconnection, customer acquisition, financing, and grid
integration, which all remain challenges for the new period of the SunShot 2030. The
module efficiency improvements reducing the PV hardware costs by reducing the number
of modules required to construct a PV system of a given size, is expected to decrease the
soft costs as well (e.g. labour, and installation overhead).
The dramatic market price reductions have resulted to two US based PV module
manufacturing companies, Suniva (Chinese owned) and SolarWorld Americas Inc. (German
owned) to claim for trade protection measures against imports of crystalline silicon PV cells
and modules96. The US International Trade Commission has recommended trade measures
and if accepted by the President Donald Trump in January 2018, these would impact
91
92
https://energy.gov/eere/solar/articles/2020-utility-scale-solar-goal-achieved
93
Ibid.
94
95
Fu, R. et al. (2017) US Photovoltaic System Benchmark, Q1/2017. Available:
96
https://www.greentechmedia.com/articles/read/doe-officially-hits-sunshot-1-per-watt-goal-for-utility-scale-
solar#gs.wTvmMRo Q
26
significantly the PV module prices. According to DOE researchers, the tariff requested on
imported solar modules would have a 2-2.5 cent impact on the LCOE for solar97. If module
prices increase from the current 35 cents to 78 cents under a new tariff scenario, the cost
of a utility-scale solar system would increase from roughly USD 1 per watt to USD 1.38
per watt, and may cause serious damage to the rest of the US PV sector98.
PV Manufacturing
 In 2016, there were around 40 active manufacturing locations in the United States,
constituting an annual module-manufacturing capacity of around 2.8 GW 99.
 From 2012 to 2016, nearly 30 US PV manufacturers have gone out of the market,
laying off hundreds of employees100.
 Consequently, the domestic demand is mainly met by imported solar products. In 2016,
about 95% of cells and panels sold in the U.S. were made abroad, with most coming
from China, Malaysia and the Philippines101.
 In 2016, concerning global PV module production, China and Taiwan hold the lead with
a share of 68%, whereas US together with Canada contributed 6%102.
 In China, the solar module production capacity was 48 GW in 2016 and it is expected
to reach 60 GW in 2017103.
 During the first-half of 2017, the Chinese solar module production reached 34 GW
presenting a 25.9% increase and continuing growth of the industry supported by
domestic sales and demand from the United States and emerging markets 104.
97
Ibid.
98
Ibid.
99
Fulton, S. (2017) Photovoltaics Made in USA. Based on the Clean Energy Analysis Management Center
(CEMAC) data, 2017. Available: http://www.manufacturingcleanenergy.org/blog-20170327.html
100
https://pv-magazine-usa.com/2017/08/31/the-case-for-u-s-solar-manufacturing/
101
Clover, I. (2017) China H1 solar panel production surges 25% in a year. PV Magazine, July 2017. Available:
https://www.pv-magazine.com/2017/07/24/china-h1-solar-panel-production-surges-25-in-a-year/
102
Fraunhofer Institute for Solar Energy Systems, ISE (2017) Photovoltaics report. July 2017. Available:
https://www.ise.fraunhofer.de/content/dam/ise/de/documents/publications/studies/Photovoltaics-
Report.pdf
103
Reuters (2017) China seen making 25 percent more solar panels in 2017. Available:
https://www.reuters.com/article/us-china-energy-solar/china-seen-making-25-percent-more-solar-panels-
in-2017-idUSKBN1A51JJ
104
Clover, I. (2017) China H1 solar panel production surges 25% in a year. PV Magazine, July 2017. Available:
https://www.pv-magazine.com/2017/07/24/china-h1-solar-panel-production-surges-25-in-a-year/
27
Figure 10: PV Module Production by Region 1997-2016 (Percentage of Total MWp Produced). Source: Fraunhofer, 2017 105.
Solar energy installations
 SunShot has catalysed growth in the solar industry in the US and contributed towards
making advances in PV installations. The amount of solar energy in the United States
has grown nearly 26-fold in 2008-2016 and has reach 49.3 gigawatts (GW) of total
installed capacity, enough to power 9.5 million American homes 106.
 The growth rate has been especially fast during the latest years. In 2016, the United
States solar market nearly doubled its annual record, yielding to install 14.6 GW of
solar PV, and according to estimations nearly 12 GW will be installed before end of the
year 2017107.
 For the first time ever, US solar ranked as the No. 1 source of new electric generating
capacity additions on an annual basis in 2016. In total, solar accounted for 39% of new
capacity additions across all fuel types108, and renewable energy (wind and solar)
accounted for 10% of total US energy consumption and about 15% of electricity
generation109.
 Reduced carbon emissions: In 2015 alone, US solar energy systems displaced more
than 28 million metric tons of carbon emissions110.
 In China, the growth of the PV installed capacity has been impressive. According to
China’s National Energy Administration (NEA), 34.2 GW of solar was connected to the
grid in 2016111.
 The total cumulative installed capacity is 77.4 GW in 2016 leaving less than 30 GW to
meet China’s 105 GW PV goal in 2020112. Based on the most recent data from the
National Energy Administration of China (NEA), the forecast for PV installations in 2017
is expected to yield 40-45 GW before the end of 2017 113 indicating that China would
achieve and supersede the Five-Year Plan target (105 GW installed capacity by 2020)
two years ahead the schedule.
 Despite the exponential growth of the Chinese PV installations, the Chinese power
system is still being dominated by coal, and from renewable energy sources, hydro and
wind power contribute more to the Chinese power generation than solar energy.
105
Fraunhofer Institute for Solar Energy Systems, ISE (2017) Photovoltaics report. July 2017. Available:
https://www.ise.fraunhofer.de/content/dam/ise/de/documents/publications/studies/Photovoltaics-
Report.pdf
106
Solar Energy Industry Association (2017) US Solar Market Insight. Available:https://www.seia.org/us-solar-
market-insight
107
Ibid.
108
Solar Energy Industry Association (2017) Solar Market Insight Report: 2016 year review. Available:
https://www.seia.org/research-resources/solar-market-insight-report-2016-year-review
109
US Energy Information administration (2017) How much of U.S. energy consumption and electricity
generation comes from renewable energy sources? Available:
https://www.eia.gov/tools/faqs/faq.php?id=92&t=4
110
https://energy.gov/sites/prod/files/2016/06/f32/SunShot-factsheet-2016.pdf
111
Roselund, C. (2017) China claims 34.2 GW of PV installations in 2016. PV Magazine, January 2017.
Available: https://www.pv-magazine.com/2017/01/17/china-claims-34-2-gw-of-pv-installations-in-2016/
112
Ibid.
113
Hutchins, M. (2017) AECEA: China installations to surpass 40 GW in 2017. PV Magazine, August, 2017.
Available: https://www.pv-magazine.com/2017/08/22/aecea-china-installations-to-surpass-40-gw-in-
2017/
28
Figure 11: Top Ten PV Markets by Country: Annual installations 2016 and cumulative installations 2016. Source: NREL, 2017 114
Figure 12 : US energy consumption by energy sources in 2016. Source, EIA, 2017 115.
Figure 13: China electricity mix 2016. Source: China Energy Portal, 2017116.
Job creation
 Adding workers almost 17 times as fast as the overall economy, the US solar industry
employed 260 077 people in 2016, up 24.5% from the previous year 117. Most of these
jobs (241 900) were in solar PV, with 13 000 in solar heating/cooling and 5200 in CSP.
Industry-wide, approximately 166 575 jobs relating to solar were added from 2010 to
114
Margolis, R. et al. (2017) Q4 2016/Q1 2017 Solar Industry Update. NREL/PR-6A20-68425, April, 2017.
115
US Energy Information Administration (EIA) (2017) US Energy Facts. Americans use many types of energy.
Available: https://www.eia.gov/energyexplained/?page=us_energy_home
116
China Energy Portal (2017) Tracking China's transition to sustainable energy. 2016 Detailed electricity
statistics. Available: https://chinaenergyportal.org/en/2016-detailed-electricity-statistics/
117
International Renewable Energy Agency (2017) Renewable Energy and Jobs Annual Review 2017.
29
2016 (during the period of SunShot Initiative) and out of which 51 000 were added in
2016 alone118.
 The US PV manufacturing sector employed 38 121 people in 2016, a 25% increase

since 2015 and the job growth is expected to continue with an expected growth rate of
6% in 2017119.
Figure 14: Solar employment by activities, 2016. Source: Solar Foundation, 2017.
 Although, the global share of the US solar energy manufacturing jobs is modest, the
overall growth in employment in PV can be considered as an accomplishment, which is
partially driven by low cost PV products imported from China. “People tend to view
negatively that China has taken over [solar] module market share,” said David Mooney,
director of NREL’s strategic energy analysis center 120. “Another side of the coin, from
my perspective is 250 000 American jobs in the solar panel assembly, installation and
maintenance business, many of which wouldn’t have happened without the push from
China that dramatically lowered solar module prices. Those jobs can’t be outsourced.”
 The Solar Energy Industry Association has estimated that the number of employees
working in solar industry could be twice as much as today by the end of 2020 reaching
420 000 jobs with an expected solar installation capacity of 100 GW and USD 140 billion
in economic contribution121.
 Return on investment: According to DOE estimations, the net economic benefits

amount more than USD 15 billion while DOE has spent approximately USD 2.3 billion
on R&D to advance PV technology122.
 In 2016, solar PV accounted for close to 1.96 million jobs in China, of which 1.3 million
were in manufacturing; 635 000 in construction and installation and 26 000 in operation
and maintenance. China accounted for more than half of the global 3.1 million solar
energy jobs, by consolidating its position as the world largest installer and
manufacturer of solar PV.
5.2 Summary of the key indicators
Key indicators
Timeline: US: 2011-2030
CN: 2011-2020
Objective and targets: US: To lower the costs of solar energy by 75% to make it cost-
competitive with other forms of energy generation by 2020. In
September 2017, it was announced that the utility-scale solar energy
cost target had been met three years ahead of schedule. The
118
Ibid.
119
IEA PVPS (2017) Photovoltaic Power Systems Programme Annual Report 2016.
120
Scientific American (2016) Why China Is Dominating the Solar Industry. Available:
https://www.scientificamerican.com/article/why-china-is-dominating-the-solar-industry/
121
Fuller, J. and Guo, Y. (2017) Comparison between China and the United States in Solar Energy
Development. Studies in Engineering and Technology, August 2017.
122
https://energy.gov/sites/prod/files/2016/06/f32/SunShot-factsheet-2016.pdf
30
initiative will continue to work to lower the cost of solar energy and
has established a new goal to reduce 50% the costs of PV.
CN: China's 12th FYP (2011–2015) set a dedicated plan for solar
energy with an aim to reduce the price of solar power and to increase
the manufacturing of PV systems. The plan also set ambitious targets
for low carbon energy backed-up by important public support. The
13th FYP (2016-2020) continues providing support to Chinese solar
energy sector with ambitious targets for solar energy installations.
Total budget: US: 2011-2016 approximately EUR 1.3 billion (USD 1.6 billion).
CN: 2016-2020 total budget for solar energy policy has been
estimated to be EUR 121 billion (USD 150 billion) in 2016-2020.
Annual budget: US123:
2011: EUR 209.5 (USD 259.6)
2012: EUR 233.2 (USD 289.0)
2013: EUR 217.2 (USD 269.1)
2014: EUR 207.5 (USD 257.1)
2015: EUR 188.0 (USD 233.0)
2016: EUR 195.0 (USD 241.6)
2017*: EUR 230.1 (USD 285.1) * requested budget
CN: NA
Share of budget, public US: 100%
funding: CN: 100%
Share of budget, private US: 0%
investment: CN: 0%
Leverage effect (additional US: It has been estimated that SunShot budget forms only 50% of
public/private investments the total public R&D investments in 2016. The other 50% is provided
the initiative has triggered): by other public organisations (e.g. ARPA-E, NASA) and state level
R&D funding. The solar energy investments and installations have
grown significantly in the US over the last years, and at least partially
this has been achieved though systematic R&I leading to lower costs
of PV. DOE has estimated that USD 2.3 billion spending on PV
technology R&D has resulted to net economic benefits totalling more
than USD 15 billion.
Key (official/public) US: Levelized cost of energy (LCOE) (in dollars per kWh).
indicators applied for CN: There is no official information on how the progress and
monitoring the progress accomplishment of the Chinese Five-Year Plans are monitored. It can
towards the targets: be assumed that the target indicators are used, including at least:
 PV demand: Installed PV capacity (in GW, divided between large-
scale and distributed forms)
 PV technology development: conversion efficiency of advanced
crystalline silicon PV cells (%); enhanced manufacturing capacity
of thin-film PV (GW); PV cost reductions by 50% by 2020 in
comparison to 2015 costs (%).
Other key indicators (e.g. US: DOE lists the following indicators that critical advances in solar
outputs/outcomes/impacts): technology have catalysed (they do not claim a causal/direct
impact): 1) Job creation, 2) Return on Investment; 3) Falling costs
of solar panels and systems, 4) Solar energy installed capacity, 5)
Innovation and technology acceleration, and 6) Reduced carbon
emissions.124
CN: There is no official information on how the progress and
accomplishment of the Chinese Five-Year Plans are monitored.
6 Conclusions and lessons learned
6.1 Identification and assessment of key strengths and weaknesses of the initiative
Strengths Weaknesses
 US: The SunShot Initiative has already  US: SunShot have not managed to retain
achieved the 2020 goals of reducing the the US leadership in solar manufacturing.
levelized cost of utility scale solar PV by 75%.  US: Unclear and discontinuous renewable
 US: It has significantly accelerated the PV energy and climate change policies.
technology development and many of the
123
USD converted to EUR current currency rate (USD 1 = EUR 0.807) without inflation adjustments.
124
31
global records of PV cell efficiency have been  US: Weak integration of demand-side
achieved through SunShot support. measures.
 US: SunShot has contributed towards  US: SunShot has been claimed to be too
creation of one of the fastest growing focused on applied research and
industries in the US, currently employing 260 achievement of the LCOE targets, and
000 persons. neglecting basic research.
 US: SunShot has accelerated the solar energy  US: DOE and EERA are facing a risk for
installations in the US and contributed important budget cuts, jeopardising the
towards GHG emission reduction. continuity of the policy.
 CN: China is the largest exporter of solar  CN: Un-coordinated development.
panels in the world has maintained the global Curtailment and electricity network
leadership in PV manufacturing along the transmission remain a bottleneck for
value chain, and has been able to meet the growth of Chinese renewable energy
fast-growing demand for solar energy. sector.
 CN: The Chinese research and industry have  CN: Trade disputes between China and the
approach the global frontier, and at least in US (and Europe).
some areas, have reached the level of the US.  CN: Dependency on imported
 CN: China has been the global leader in manufacturing tools, machines and know-
annual PV installations over last years and how.
has the largest installed solar capacity in the
world. The domestic demand has given extra
boost to initially export oriented
manufacturing industry.
 CN: Renewable energy investments (both
public and private sector) remain at a high
level.
6.2 Lessons learned and key messages for European R&I policy
This case study looked at the US SunShot Initiative that aimed at accelerating technological
development to cut the solar energy costs by 75% by 2020 and setting US PV
manufacturing industry back as global leader. In many ways, the SunShot has been a
success story: the cost objectives were achieved three years ahead the schedule, the US
solar energy installations are growing, and the US solar energy sector is among the fastest
growing industries in the country offering jobs to 260 000 employees.
It can be said that SunShot has succeeded and failed because of Chinese solar energy
policies. The SunShot Initiative achieved the utility-scale levelized cost of energy targets
in advance, partially due to rapidly declining PV cell and module global market prices.
Those cost reductions are certainly partially driven by technological advancements induced
by SunShot and other R&I initiatives. But among the drivers of the cost reductions, one
stands out: “low-cost Chinese manufacturers, who enjoy substantial subsidies from the
Chinese government”125. The low market prices have practically pushed the US
manufacturing industry out of the market, and the growing solar energy demand in the US
is met mainly by imported solar cells and modules. This is also the precise reason why
SunShot can also be considered less successful as it did not manage regain the PV
manufacturing leadership. Currently, only a small fraction of domestic solar energy
installations is met by solar products manufactured in the US.
China has emerged as a global leader in the main parts of solar energy supply chain. The
Chinese solar cell and module production capacity rose exponentially in a short period of
time, initially in response to the demand growth occurring in Europe. When demand growth
slowed down in Europe, the Chinese PV manufacturers maintained a high level of
production and provoked an imbalance in the global PV market leading to a steep market
price decreases of PV products. Today, a major part of the Chinese solar modules is
manufactured to meet domestic demand. China is the world leading economy in terms of
installed solar energy capacity, and the growth is expected to continue.
Both the SunShot Initiative and the Chinese solar energy policy have been based on
subsidies. The former is subsidising R&I, whereas the latter was focused until recently
subsidizing manufacturing sector to purchase foreign manufacturing technology and fast
Shum, R. Y. (2017) The coming solar trade war: Obstacles to decarbonization from a political-economy
125
conflict. The Electricity Journal, October 2017.

32
scale-up the production capacity. Why did the Chinese subsidies win over US subsidies? It
can be thought that US policy was aimed at accelerating the technological development
and reducing the solar energy costs through enhanced materials and advanced production
methods, whereas Chinese approach was more geared towards economies of scale and
reducing the manufacturing costs through mass production. When SunShot was planned
and launched, even the most optimistic market forecasts underestimated the market
growth of solar energy we have seen over the last years. The Chinese manufacturers, with
mass produced low-cost PV products, could meet the rapidly growing demand in more agile
manner, and with the help of indirect subsidies in forms of lower investment costs, the
Chinese PV manufacturing companies were able to enlarge the production volumes fast.
Technological advancements continue to drive the progress of solar energy also in the
future, and it remains to be seen who finally will gain most in the global “racing towards
the sun” mission.
33
References:
12th Five-Year Plan for the Solar Photovoltaic Industry (non-official translation) Available:
http://www.americansolarmanufacturing.org/news-releases/chinas-five-year-plan-for-
solar-translation.pdf
Ball, J. et al. (2017) The New Solar System China’s Evolving Solar Industry and Its
Implications for Competitive Solar Power in the United States and the World. A Joint
Initiative of Stanford Law School and Stanford Graduate School of Business, March 2017.
China Energy Portal (2017) Tracking China's transition to sustainable energy. 2016
Detailed electricity statistics. Available: https://chinaenergyportal.org/en/2016-detailed-
electricity-statistics/
Clover, I. (2017) China H1 solar panel production surges 25% in a year. PV Magazine, July
2017. Available: https://www.pv-magazine.com/2017/07/24/china-h1-solar-panel-
production-surges-25-in-a-year/

Department of Energy (2017) About grid modernization initiative. Available:

https://energy.gov/under-secretary-science-and-energy/about-grid-modernization-
initiative
Department of Energy (2017) Energy Department Announces Achievement of SunShot

Goal, New Focus for Solar Energy Office. Available: https://energy.gov/articles/energy-
department-announces-achievement-sunshot-goal-new-focus-solar-energy-office
Department of Energy (2017) Market Transformation. Available:

Department of Energy (2017) Newsletters. Available: https://energy.gov/eere/solar/solar-

newsletters
Department of Energy (2017) Quadrennial Energy Review

https://www.freshlawblog.com/files/2017/11/DOE-Jan-2017-Quadrennial-Energy-
Review.pdf
Department of Energy (2017) Quarterly Solar Industry Update. Available:

https://energy.gov/eere/solar/quarterly-solar-industry-update
Department of Energy (2017) Renewable energy: Distributed generation policies and

programmes. Available: https://energy.gov/eere/slsc/renewable-energy-distributed-
generation-policies-and-programs
Department of Energy (2017) Solar Energy Technologies Office, FY 2016 Budget At-A-
Glance. Available: https://energy.gov/sites/prod/files/2015/03/f20/fy16_seto_at-a-
glance.pdf
Department of Energy (216) SunShot Fact Sheet 2016. Available:

Department of Energy (DOE) (2017) About the Office of Energy Efficiency and Renewable
Energy. Available: https://energy.gov/eere/about-office-energy-efficiency-and-
renewable-energy
Department of Energy (DOE) (2017) About the Solar Energy Technologies Office. Available:
34
Department of Energy (DOE) (2017) The SunShot Initiative. Available:
https://energy.gov/eere/solar/sunshot-initiative
Development. Studies in Engineering and Technology, August 2017.
Environmental Protection Agency (2017) Summary of the Energy Policy Act. Available:
https://www.epa.gov/laws-regulations/summary-energy-policy-act
Fraunhofer Institute for Solar Energy Systems, ISE (2017) Photovoltaics report. July 2017.
Available:
https://www.ise.fraunhofer.de/content/dam/ise/de/documents/publications/studies/Phot
ovoltaics-Report.pdf
Fu, R. et al. (2017) US Photovoltaic System Benchmark, Q1/2017. Available:

Fuller, J. and Guo, Y. (2017) Comparison between China and the United States in Solar
Energy
Fulton, S. (2017) Photovoltaics Made in USA. Based on the Clean Energy Analysis
Management Center (CEMAC) data, 2017. Available:
http://www.manufacturingcleanenergy.org/blog-20170327.html
Gallagher, K. (2014) The Globalization of Clean Energy Technology
Gay, C. (2017) Solar In 2030: Making The New SunShot Vision A Reality. Available:
https://issues.solarindustrymag.com/article/solar-2030-making-new-sunshot-vision-
reality
Gosens, J. et al. (2017) China’s next renewable energy revolution: goals and
Green, M. et al (2017) Solar cell efficiency tables (Version 50). Progress in Photovoltaics,
June 2017. Available: http://onlinelibrary.wiley.com/doi/10.1002/pip.2909/abstract,
Greentech Media (2017) DOE’s SunShot Awards $46M for Solar Tech-to-Market Research.
Available: https://www.greentechmedia.com/articles/read/doe-sunshot-46-million-
grants-solar-technology-market-research#gs.ZoM5iwI
Hoang, S. (2017) The Environmental History of Solar Photovoltaic Cells. Available:

https://repository.wellesley.edu/cgi/viewcontent.cgi?referer=https://www.google.es/&htt
psredir=1&article=1019&context=library_awards
Hutchins, M. (2017) AECEA: China installations to surpass 40 GW in 2017. PV Magazine,

August, 2017. Available: https://www.pv-magazine.com/2017/08/22/aecea-china-
installations-to-surpass-40-gw-in-2017/
IEA PVPS (2017) Photovoltaic Power Systems Programme Annual Report 2016.
International Energy Agency (2016) China 13th Solar Energy Development Five Year Plan
(2016-2020). IEA/IRENA Joint policies and measures database. Available:
https://www.iea.org/policiesandmeasures/pams/china/
International energy Agency (IEA) (2013) Brightness Programme. Available:

https://www.iea.org/policiesandmeasures/pams/china/name-22668-en.php
International Energy Agency (IEA) (2017) National Survey Report of PV Power Applications
in the United States 2016.
International Renewable Energy Agency (2017) Renewable Energy and Jobs Annual Review
2017.
Lessons from China. Available: https://mitpress.mit.edu/books/globalization-clean-

energy-technology
35
Long, K. (2017) Dirty Solar ? Reuters, August 2011. Available:
http://blogs.reuters.com/muniland/2011/08/31/dirty-solar/; Biello, D. (2011) SunShot:
Lowering the price of electricity from the sun. Scientific Amaerican, March 2011. Available:
https://www.scientificamerican.com/article/sunshot-lowering-price-of-solar-electricity/
Margolis, R. et al. (2017) Q4 2016/Q1 2017 Solar Industry Update. NREL/PR-6A20-68425,

April, 2017. Available: https://www.nrel.gov/docs/fy17osti/68425.pdf
Martinot, E. (2010) Renewable power for China: Past, present, and future. Frontiers of
Energy and Power Engineering in China, September 2010. Available:
https://link.springer.com/content/pdf/10.1007%2Fs11708-010-0120-z.pdf
Meng, M. and Gloystein, H. (2017) With high-performance cells, China takes aim at high-
end solar market. Available: https://www.reuters.com/article/us-china-solar-cost-
analysis/with-high-performance-cells-china-takes-aim-at-high-end-solar-market-
idUSKCN1BP0X6
Mints, P. (2012) The Solar PV Ecosystem, A Brief History and a Look Ahead. Renewable
Energy World, November 2012. Available:
http://www.renewableenergyworld.com/articles/2012/11/the-solar-pv-ecosystem-a-
brief-history-and-a-look-ahead.html

Ng, S. et al. (2016) Pulling ahead on clean technology China’s 13th five-year plan
challenges Europe’s low carbon competitiveness. E3G Briefing Paper, March 2016.
Available: https://www.e3g.org/docs/E3G_Report_on_Chinas_13th_5_Year_Plan.pdf
NREL (2016) On the Path to the SunShot: Emerging Opportunities and Challenges in U.S.
Solar Manufacturing. Available: https://www.nrel.gov/docs/fy16osti/65788.pdf
Panjwani, L. (2017) Department of Energy ‘Sunshot’ Aims to Accelerate Solar R&D. R&D
Magazine, july 2017. Available: https://www.rdmag.com/article/2017/07/department-
energy-sunshot-aims-accelerate-solar-r-d
Pyper, J. (2017) DOE Officially Marks SunShot’s $1 per Watt Goal for Utility-Scale Solar.
Greentech Media, September 2017. Available:
https://www.greentechmedia.com/articles/read/doe-officially-hits-sunshot-1-per-watt-
goal-for-utility-scale-solar#gs.oxQl87w
Reuters (2017) China seen making 25 percent more solar panels in 2017. Available:
https://www.reuters.com/article/us-china-energy-solar/china-seen-making-25-percent-
more-solar-panels-in-2017-idUSKBN1A51JJ
Reuters (2017) China to plow $361 billion into renewable fuel by 2020. Available:
https://www.reuters.com/article/us-china-energy-renewables/china-to-plow-361-billion-
into-renewable-fuel-by-2020-idUSKBN14P06P
Roselund, C. (2017) China claims 34.2 GW of PV installations in 2016. PV Magazine,

January 2017. Available: https://www.pv-magazine.com/2017/01/17/china-claims-34-2-
gw-of-pv-installations-in-2016/
Scientific American (2016) Why China Is Dominating the Solar Industry. Available:
https://www.scientificamerican.com/article/why-china-is-dominating-the-solar-industry/
Shum, R. Y. (2017) The coming solar trade war: Obstacles to decarbonization from a
political-economy conflict. The Electricity Journal, October 2017.
Solar Energy Industry Association (2017) Photovoltaic (Solar Electric). Available:

https://www.seia.org/initiatives/photovoltaic-solar-electric
36
Solar Energy Industry Association (2017) Solar Market Insight Report: 2016 year review.
Available: https://www.seia.org/research-resources/solar-market-insight-report-2016-
year-review
Solar Energy Industry Association (2017) US Solar Market Insight. Available:

https://www.seia.org/us-solar-market-insight
SunLight Electric (2017) Photovoltaic History. Available:

http://www.sunlightelectric.com/pvhistory.php
The 13th Five-Year Plan for Economic and Social Development of the People’s Republic of
China (2016–2020). Available:
http://en.ndrc.gov.cn/newsrelease/201612/P020161207645765233498.pdf
The Climate Group (2011) Delivering Lowcarbon Growth: A Guide to China’s 12t Five Year
Plan.
The US Department of Energy (DOE) (2016) The SunShot Initiative: Making Solar Energy
Affordable for All Americans. Available:
The White House (2011) Fact Sheet: The State of the Union: President Obama's Plan to
Win the Future. Available: https://obamawhitehouse.archives.gov/the-press-
office/2011/01/25/fact-sheet-state-union-president-obamas-plan-win-future
https://obamawhitehouse.archives.gov/sites/default/files/uploads/clean_energy_report_
vpotus.pdf
Urban, F. et al. (2016) Solar PV and solar water heaters in China: Different pathways to
low carbon energy. Renewable Energy Reviews, October 2016. Available:
Urban, F., Geall, S. and Wang, Y. (2016) Solar PV and solar water heaters in China:
Different pathways
US Energy Information administration (2017) How much of U.S. energy consumption and
electricity generation comes from renewable energy sources? Available:
https://www.eia.gov/tools/faqs/faq.php?id=92&t=4
US Energy Information Administration (EIA) (2017) US Energy Facts. Amaericans use

many tyoe of energy. Available:
https://www.eia.gov/energyexplained/?page=us_energy_home
Zhang, S. et al. (2013) Interactions between renewable energy policy and renewable
energy industrial policy.
37
,
Getting in touch with the EU
IN PERSON
All over the European Union there are hundreds of Europe Direct Information Centres.
You can find the address of the centre nearest you at: http://europa.eu/contact
ON THE PHONE OR BY E-MAIL

Europe Direct is a service that answers your questions about the European Union.
You can contact this service
– by freephone: 00 800 6 7 8 9 10 11 (certain operators may charge for these calls),
– at the following standard number: +32 22999696 or
– by electronic mail via: http://europa.eu/contact
Finding information about the EU
ONLINE
Information about the European Union in all the official languages of the EU is available on the Europa website at:
http://europa.eu
EU PUBLICATIONS
You can download or order free and priced EU publications from EU Bookshop at:
http://bookshop.europa.eu. Multiple copies of free publications may be obtained
by contacting Europe Direct or your local information centre (see http://europa.eu/contact)
EU LAW AND RELATED DOCUMENTS

For access to legal information from the EU, including all EU law since 1951 in all the official language versions,
go to EUR-Lex at: http://eur-lex.europa.eu
OPEN DATA FROM THE EU

The EU Open Data Portal (http://data.europa.eu/euodp/en/data) provides access to
datasets from the EU. Data can be downloaded and reused for free, both for commercial and
non-commercial purposes.
The SunShot Initiative was launched in 2011 by the US Department of Energy’s (DOE)
Solar Energy Technologies Office (SETO). The overall mission of the SunShot is to support
solar energy adoption by making it affordable and cost-competitive with other forms of
energy by 2020. Due to the technological progress made and overall market conditions of
solar systems, the targets of the SunShot initiative have been met two years ahead of
schedule, and new ambitious targets have been set to reduce the costs of solar energy by
an additional 50% between by 2030. The SunShot Initiative can be considered a success
story in many aspects, but it has been less successful in gaining global leadership in terms
of solar energy manufacturing industry. China has become the global hub of solar energy
during the last decade. This case study looks at the overall context and achievements of
the SunShot initiative, reflecting those to simultaneous developments in China.
Studies and reports

US SunShot ArriluceaKuittinen

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

US SunShot ArriluceaKuittinen

Uploaded by

Copyright:

Available Formats

,

Mission-oriented R&I policies: In-depth case studies

Case Study Report

US SunShot Initiative and

Eva Arrilucea, Hanna Kuittinen

Manuscript completed in February 2018.

More information on the European Union is available on the internet (http://europa.eu).

Luxembourg: Publications Office of the European Union, 2018

PDF ISBN 978-92-79-80161-7 doi: 10.2777/967418 KI-01-18-152-EN-N

© European Union, 2018.

Mission-oriented R&I policies: In-depth case studies

Case Study Report

US SunShot Initiative and

A Study coordinated by the Joint Institute for Innovation Policy

February 2018 Directorate-General for Research and Innovation

1 Summary of the case study

Timeline: US: 2011-2030

Assessment of the main elements of mission-oriented R&I initiative1

2 Context and objectives of the initiative

2.1 Contextual factors and origins of initiatives

US context prior the SunShot Initiative

Table 1: Drivers and barriers of the initiatives.

Economic  US & CN: Huge global market  US: Loss of competitiveness

2.2 Strategic and operative objectives and milestones of the initiatives

Objectives of SunShot Initiative 2020 and updated objectives 2030

 USD 0.10 per kilowatt hour for residential solar;

 USD 0.08 per kilowatt hour for commercial solar;

 USD 0.06 per kilowatt hour for utility-scale solar.

 USD 0.05 per kilowatt hour for residential PV;

 USD 0.04 per kilowatt hour for commercial PV;

 USD 0.03 per kilowatt hour for utility-scale PV.

 Maintain U.S. leadership in solar technology innovation by improving efficiency and

 Develop a well-trained workforce to foster US job creation in the solar industry.

Development goals Description

Solar energy Target by 2020 Targeted costs reductions

3 Resources and management

3.1 Governance and management model

SunShot Initiative coordination

Coordination of solar energy R&D in China

3.2 Financing model

Fiscal Year 2011 2012 2013 2014 2015 2016 2017

3.3 Key actors involved in the initiative

The Chinese government, through its main research-and-development arm, the

3.4 Monitoring system and evaluation of the initiative

3.5 Level and type of citizen engagement in the initiative

SunShot R&I policy instruments

Table 5: SunShot sub-programmes. Source: DOE, 2017.

Systems Integration The systems integration sub-programme works to enable the

Innovations in This sub-programme develops and validates breakthrough, early-

Table 6: SunShot budget by sub-programme in 2016. Source: DOE, 2017.

Sub-programmes Funding in 2016 (USD Share %

 Concentrating Solar Power (CSP): Up to USD 62 million dedicated to support advances

 Power Electronics: Up to USD 20 million is dedicated to early-stage projects to advance

R&D policy instruments of Chinese solar energy policy

4.2 Connections with other policies

Federal and state-level renewable energy policies in the US

‒ Currently 29 states have Renewable portfolio standards (RPS) policies in place,

China: 12th and 13th Five-Year Plans

 Two programmes initially introduced in 2015 are continued.

‒ Poverty Alleviation Programme aims to provide PV panels to 2.8 million

Major changes / turning points Description of the flexibility mechanism / policy

5 Realised or expected outputs, outcomes and impacts

5.1 Outputs, outcomes and impacts