U.S. Department of Energy Solar Energy Technologies Office

The U.S. Department of Energy Solar Energy Technologies Office (SETO) is a vital federal entity within the Office of Energy Efficiency and Renewable Energy (EERE), dedicated to advancing solar energy technologies. Unlike traditional venture capital firms, SETO operates as a grant-making body, providing funding for early-stage research, development, demonstration, and deployment (RDD&D) projects. Its core mission is to drive down the cost of solar energy, enhance its reliability, and accelerate its widespread adoption across the United States, thereby contributing significantly to the nation's clean energy goals.

SETO's strategic focus encompasses a broad spectrum of solar technologies and challenges. This includes advancements in photovoltaics (PV), concentrating solar-thermal power (CSP), and critical areas like solar systems integration, which ensures solar energy can be seamlessly incorporated into the national grid. Furthermore, SETO addresses 'soft costs'—non-hardware expenses such as permitting, financing, and customer acquisition—which represent a significant portion of solar project expenses. By supporting innovation across these diverse areas, SETO aims to foster a robust and competitive domestic solar industry.

SETO's funding initiatives are typically announced through competitive funding opportunity announcements (FOAs) and cooperative agreements. These grants are awarded to a diverse range of recipients, including universities, national laboratories, and private companies, fostering a collaborative ecosystem for solar innovation. For instance, in fiscal year 2022, SETO announced up to $100 million in funding for 40 projects aimed at lowering solar costs and improving grid reliability. The office's long-term targets are ambitious, including a goal to reduce the cost of solar electricity by 50% by 2030. Through these strategic investments, SETO plays a crucial role in de-risking nascent solar technologies and bridging the gap between fundamental research and commercial viability, ultimately shaping the future of solar energy in the U.S.