Abstract In the last few years there have been rapid advances in thin-film solar cell technology. Industry projections indicate that 12–18% efficient photovoltaic (PV) cells costing $0.20-0.40 per peak Watt could become available by the year 2000. If these goals are realized, hydrogen could be produced via PV-powered electrolysis in sunny areas such as the Southwestern United States at costs of $9–14 per GJ. The lifecycle cost of using PV hydrogen for transport and home heating would then be comparable to using coal-based synthetic fuels or electricity (from coal or nuclear sources), if energy efficiency is stressed in energy use. If concerns about the build-up of atmospheric CO 2 lead to restrictions on the future use of carbon-based fossil fuels, it appears that PV hydrogen could offer an environmentally benign and economically acceptable alternative beginning early in the next century.
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