February 1, 2025 Solar energy may still seem like an emerging technology, but the first rooftop solar panel was installed in New York City over 140 years ago. Since then, advancements in PV technology have revolutionized how solar energy is harnessed, making it more efficient, affordable, and accessible for residential and commercial use around the globe.
Solar power was slow to hit the mainstream, but a few boosts from the US Federal Government have helped. First, the Solar Energy Research, Development and Demonstration Act of 1974 promoted new research to improve the usefulness of solar power.
Another key development was the introduction of the Solar Investment Tax Credit in 2006, which provided a federal income tax reduction for solar energy system buyers. This spurred a steady increase in the industry’s growth, along with improvements in technology and economies of scale.
Today, the solar industry is maturing rapidly. Meanwhile, solar energy technology is still improving. There may come a point where solar cell efficiency, and solar technology as a whole, are “as good as they’ll get,” but in 2025 we’re still far from that moment.
Here are a few of the most pressing solar technology challenges, and some of the advancements and innovations being developed to meet them.
Solar PV Technology Challenges and Focus Areas
Solar panels use photovoltaic (PV) cells, commonly called solar cells, to turn sunlight into electricity. A key characteristic of any solar cell is its energy conversion rate, also known as its efficiency. This refers to how much sunlight the cell is able to convert into electricity.
The first solar cell, invented in 1883 by Charles Fritts, had an energy conversion rate of just 2%. Today, most panels offer efficiencies between 18–24%. Improving efficiency has been a constant goal throughout the history of PV technology, and remains a key research area. As efficiency improves, so does solar’s cost-competitiveness with fossil fuels, along with the global output of solar energy.
Other challenges and focus areas for advancing solar energy technology include:
- Improving energy storage of solar power
- Reducing land use and water use for solar farms
- Developing new materials for better efficiency and reduced environmental impacts
Innovations and Advancements in Solar Tech
Organic Solar Cells
Organic solar cells are PV cells made from organic (carbon-based) material. In standard solar cells, the absorber layer that captures sunlight is made from silicon. In organic photovoltaics (OPV), the absorber layer uses a polymer or other carbon-based material.
Compared to silicon, an organic absorber layer can be made with a more lightweight, flexible structure. These advantages could be used to create more durable panels that are adaptable to use on a wider variety of surfaces. OPV can also utilize a broader, more abundant base of materials, with lower manufacturing costs.
Currently, the drawbacks of OPV include a shorter lifespan and lower efficiency compared to silicon cells. However, in 2023, researchers achieved a record 19% efficiency with organic solar cells, indicating a promising future for this emerging technology.
Perovskite Solar Cells
Similar to organic solar cells, perovskite solar cells are another alternative to silicon for absorbing solar energy. These cells are made from perovskites—minerals composed mainly of calcium titanite—in combination with organic ions and metals.
Perovskite solar cells are incredibly effective at capturing energy from certain colors of light while requiring only a very small amount of material. As a result, perovskite solar cells have the potential to function in much thinner layers compared to silicon cells. This may lead to new, dynamic uses, such as perovskite solar cell coatings on walls or windows.
Perovskite cells can also be used in tandem with silicon cells. Because perovskite “specializes” in absorbing certain colors, the combination of perovskite and silicon can create solar cells that are more powerful than either material in isolation.
Silicon-perovskite tandem solar cells have demonstrated an efficiency of up to 34%, while perovskite cells on their own have reached an efficiency of 26%.
Floating Solar Farms
Floating solar, nicknamed floatovoltaics, refers to an array of solar panels mounted to an installation that floats on water, such as on the surface of a lake or a pond.
Compared to ground-mounted solar farms, floatovoltaic tech offers exciting advantages, including:
- Minimal land use and co-use opportunities for waters such as irrigation ponds and reservoirs
- Environmental benefits for water bodies, such as reduced evaporation and algae control
- Enhanced productivity thanks to the natural cooling effect of water
Floating solar panels are slightly more expensive to install and involve additional maintenance requirements. However, floatovoltaics presents promising opportunities for new solar energy projects, especially in areas that lack appropriate land for ground-based arrays.
Bifacial Solar Panels
Most solar panels in use today, such as those that lie flat on rooftops, are monofacial. These panels have just one surface, or face, that absorbs sunlight to convert to energy. However, solar panels can also be made with two useful surfaces, i.e. bifacial.
A bifacial panel captures sunlight on both sides. That means that more orientations can be used, and for more hours of the day, to generate power. Bifacial panels can be used to make solar arrays more efficient or to make arrays feasible in areas with limited power generation potential.
Bifacial panels have become increasingly common since the early 2010s. As solar project designers become more adept at taking advantage of the benefits of this panel type, it’s likely that bifacial panels will become much more popular in the near future.
Get Expert Design and Engineering Services for Your Solar Energy Project
Solar power is the world’s fastest-growing energy source, and innovations like the ones discussed above suggest that growth won’t slow down any time soon. For leading solar consulting firms like KMB Design Group, it’s an exciting time to be in the industry.
Are you planning a major solar energy project? KMB can help. Licensed in all 50 states, we’ve worked on over 2,000 solar projects, totaling over 6,500 MW.
Contact our team today to learn more about our PV design and engineering services.