First Solar: the Greentech media analysis
First Solar (and others) developed a process for making solar cells with considerably less semiconductor material. (...) Still, for all the benefits of First Solar’s cells, they are inferior in many important ways to a polycrystalline cell. Their efficiency is lower -- which means you do not get as much solar energy off the constrained roof space. Secondly, while they save a lot on the semiconductor part of the manufacturing process they have to use more glass, more wires, etc., to generate the same amount of solar electricity. Each cell generates less electricity, as well, so inverters, connectors, and installations all cost more with thin film. Thin film also degrades over time. (...) Indeed, the main advantage of thin film is cost -- and that cost advantage has been driven by the cost of the semiconductor component. After all, ingot did cost $450 per kg at one point. (...) However, the price of ingot has fallen -– and spot prices are now $55 per kg, a lot less than $450. First Solar’s advantage is entirely dependent on the fact that they use much less semiconductor than wafers -- an advantage that disappears entirely as wafer prices fall (...) [and] the extra glass and other balance-of-system costs that First Solar panels have are now getting close to completely removing the advantage of low semiconductor material usage.