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6. SOLAR PHOTOVOLTAICS Solar photovoltaics, also called solar cells or just PV, are electronic devices that convert sunlight directly into electricity. The modern form of the solar cell was invented in 1954 at Bell Telephone Laboratories. Today, PV is one of the fastest‐growing renewable energy technologies and is expected to play a major role in the future global electricity generation mix. Solar PV systems are one of the most “democratic” renewable technologies, in that their modular size means that they are within the reach of individuals, co‐operatives and small‐scale businesses that want their own generation facilities and so lock‐in electricity prices. A PV system consists of a number of PV cells grouped together to form a PV module, along with auxiliary components (i.e. balance of system or BoS), including the inverter, controls, etc. There are a wide range of PV cell technologies on the market today, using different types of materials, and an even larger number will be available in the future. PV cell technologies are usually classified into three generations, depending on the basic material used and their level of commercial maturity: • First‐generation PV systems (fully commercial) use the wafer‐based crystalline silicon (c‐Si) technology, either single crystalline (sc‐Si) or multi‐crystalline (mc‐Si). • Second‐generation PV systems (early market deployment) are based on thin‐film PV technologies and generally include three main families: 1) amorphous (a‐Si) and micromorph silicon (a‐Si/μc‐Si); 2) Cadmium‐Telluride (CdTe); and 3) Copper‐Indium‐Selenide (CIS) and Copper‐ Indium‐Gallium‐Diselenide (CIGS). • Third‐generation PV systems include technologies, such as concentrating PV (CPV) and organic PV cells, which are still under demonstration or have not yet been widely commercialised, as well as novel concepts under development. This paper focuses on the costs of those first and second‐ generation technologies that are available commercially. Solar PV systems operate in the presence of direct or diffuse solar irradiation. The higher the level of solar resource, all things being equal, the lower the system’s LCOE will be. Siting solar PV systems in areas with high solar resources (usually expressed as annual mean figures in kWh/m2/year or as kWh/m2/day) will therefore minimise the cost of electricity. 6.1 SOLAR PV CAPITAL COSTS PV is a mature, proven technology that has achieved grid parity in a number of markets. With continued cost reductions, grid parity will soon be the norm, rather than the exception.24 PV is a renewable, secure energy source with very high plant reliability and is not exposed to any fuel price volatility. PV has made remarkable progress in reducing costs, as until recently grid parity still seemed very far away. The capital cost of a PV system is composed of the PV module cost and the BoS cost. The cost of the PV module – the interconnected array of PV cells – is determined by raw material costs, notably silicon costs, cell processing/ manufacturing and module assembly costs. The BoS cost includes items such as the cost of the structural system (e.g. structural installation, racks, site preparation and other attachments), the electrical system costs (e.g. the inverter, transformer, wiring and other electrical installation costs) and the cost of the battery or other storage system, if any, in the case of off‐grid applications. 6.1.1 SOLAR PV MODULE PRICES The cumulative installed capacity of solar PV grew by around 70% in 2011. Combined with the high learning rate for solar PV and overcapacity in the manufacturing base, this growth has resulted in significant price declines over recent years. 24 The term “grid parity” is often used loosely and inconsistently. In this paper, it is meant to represent the point where the LCOE of PV, without subsidies, is the same or lower than the residential electricity price, excluding taxes. Other definitions include a price equal to, or lower than, the price of peak, shoulder or base-load electricity generation. In some cases, it will include or exclude taxes and subsidies. Renewable Power Generation Costs in 2012: An Overview 49PDF Image | International Renewable Energy Agency
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