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U.S. Department of Energy SunShot Initiative
The U.S. Department of Energy's SunShot Initiative, launched in 2011 by Arun Majumdar, aimed to make solar cost-competitive with fossil fuels by 2020.
U.S. Department of Energy SunShot Initiative
The SunShot Initiative was established in 2011 by the U.S. Department of Energy, first led by Arun Majumdar, as a strategic response to the need for solar energy cost parity. The program was named after President Kennedy's Moon Shot, signaling an ambitious, technology-driven timeline. It operated from DOE headquarters in Washington, D.C. SunShot deployed funding across three pillars: photovoltaics research, balance-of-system costs, and market transformation. It supported the SunShot Incubator program, SunShot Prize competitions, and partnerships with national labs and universities. The initiative funded early-stage technologies in silicon cells, thin films, concentrators, and power electronics, later expanding into soft cost reduction. Notable projects included the SunShot Solar Regulatory Reform initiative and the Rooftop Solar Challenge. Geographic focus was domestic, with impact across California, Southwest, and Northeast markets. By 2017, SunShot achieved its 2020 target of $0.06 per kilowatt-hour for utility-scale solar (per NREL, 2017). The program was subsumed into the DOE Solar Energy Technologies Office in 2020, but its framework continues. Over its lifetime, SunShot distributed approximately $1.5 billion in funding, supporting over 100 research awards. A 2017 DOE report confirmed the 70% cost reduction goal was met three years early. The structural differentiator of SunShot was its top-down cost goal, tied to a specific price point rather than a technology roadmap. Unlike DOE programs that fund basic research with diffuse targets, SunShot unrolled a measurable, market-facing objective. Its successor, the Solar Energy Technologies Office, maintains this pricing anchor.
General information
Firm type
other
Year founded
2011
AUM
Undisclosed
Location
Region
North America
Country
United States
City
Washington
Corporate office
Washington, DC, United States
Principals
Arun Majumdar
Director (2011–2012)
Steven Chu
Secretary of Energy (sponsor)
Sector focus
Frequently asked questions
Who directed the SunShot Initiative at its launch?
Arun Majumdar, a former Google executive and mechanical engineering professor, served as the first director of the SunShot Initiative from 2011 to 2012. He was appointed by Energy Secretary Steven Chu (per DOE, 2011).
Did the SunShot Initiative meet its 2020 cost target?
Yes. The program achieved its goal of $0.06 per kilowatt-hour for utility-scale solar energy three years early, by 2017. The National Renewable Energy Laboratory confirmed the cost reduction in a 2017 report (per NREL, 2017).
What types of funding mechanisms did SunShot use?
SunShot used competitive grants, prize competitions, and cooperative agreements. Key vehicles included the SunShot Incubator program for startups, the SunShot Prize for market aggregation, and R&D awards through national labs and universities (per DOE, 2011–2020).
What happened to the SunShot Initiative after 2020?
In October 2020, the SunShot Initiative was folded into the U.S. Department of Energy's Solar Energy Technologies Office. Its cost-reduction framework and funding lines were integrated into SETO's broader solar R&D portfolio (per DOE, 2020).
How much funding did SunShot disburse in total?
Over its decade of operation, from fiscal year 2011 to 2020, the SunShot Initiative allocated approximately $1.5 billion in total funding, supporting more than 100 research projects and market transformation efforts (per DOE budget documents, 2020).
What differentiates the SunShot Initiative from other DOE energy programs?
SunShot was structured around a single, measurable cost target — $0.06/kWh — rather than a technology portfolio. This created a clear, market-facing benchmark that drove prioritization across research areas, regulatory reform, and market adoption. Most DOE programs fund multiple technology tracks without a unified price goal.
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