"Toshiba Jumping Into Solar Power After Launching EV Battery Business " Green Car Advisor

Toshiba Jumping Into Solar Power After Launching EV Battery Business

Toshiba Corp., which got into the electric-car battery business three months ago, said it now has launched a photovoltaic systems business to take advantage of what many analysts see as a growing solar energy market.

While Toshiba's initial aim is to develop large solar power generating systems for utilities and industry, the new unit also would give it another avenue into the electric vehicle business if solar-powered EV recharging stations ever catch on commercially.

Toshiba already makes a rechargeable lithium-ion battery for use in EVs.

The company said that its new photovoltaic division intends to tap into a utilities and industry market that analysts expect to generate almost $24.5 billion in global sales by fiscal 2015. The company said it hopes to secure a $2.2-billion slice of the market by then.

Not Alone

Toshiba's announcement comes at the same time U.S.-based Solar Power Inc., a manufacturer of solar systems, said it has signed a deal for Chinese photovoltaic cell maker JA Solar to supply it with up to 60 megawatts of solar cells over the next year.

Solar Power, based in Northern California, said it needs the parts for systems it is building for customers in the U.S., Europe and Asia. Locking in a 12-month supply, the company said, will help it avoid a components shortage that has slowed business in the past.

Like Toshiba, Solar Power sees an increase in the solar energy business although the present economic crunch is hurting the market.

In the U.S., the federal government recently extended tax credits for solar technology through 2015 and is extending the credits to homeowners as well as to businesses.

That and the commitment of the incoming Obama Administration to an economic recovery plan that stresses energy independence and green technologies, gave venture capitalists enough faith in the solar market to continue strong investments in solar companies despite the steep global recession.

John O'Dell, Senior Editor