Will Utility Scale PV Reach Grid Parity without Incentives?
Author: Eben Russell; Published: Oct 20, 2009; Categories: Balance of System (BOS), PhotoVoltaic, Utility Scale; Comments: 2
The cost of PV Crystalline modules is dropping, and more and more cost reduction steps are taking place at the BOS level, such as Suntech’s release of the Reliathon product line. Reliathon is a cost reduction platform with Array Technologies’ DuraTrack HZ single axis tracker and multiple utility scale inverter manufacturers.
Is utility scale PV on a path to compete on a cost per AC MWH produced level with CSP, Wind or eventually traditional fossil fuel or nuclear power plants?
With government incentives such as the investment tax credit (ITC) as well as the emerging REC (Renewable Energy Credits) and Carbon Credits markets, utility scale PV plants are cost competitive now, but will they be able to reach grid parity in the absence of these incentives in the future?
NABCEP Seth
on Oct 01, 2010
1:36 pm
ABSOLUTELY!
Having been in the industry for eleven years has shown me a lot of ups and downs but I am confident that we are CLOSER THAN WE EXPECT to grid parity.
In fact I am willing to bet we will see it this decade. Either way, it is not a question of IF, but WHEN? Energy Costs are rising faster and faster. And we have the phenominon ofDistributed Generation on our side. This is just the fact that the power company must generate three Kw/h just to sell you one Kw/h because they actually lose up to 2/3 of total production to line losses as the energy travels to it’s destination.
Well when we install a PV system, it is 93-99% efficient and has virtually zero line losses, so it is really offsetting three times it’s output, over at the power plant 150 miles away. This gives us a huge advantage over the conventional grid power generation model.
Grid Parity is well on it’s way, maybe ten times closer than when I started in 1999.
Seth Willey
Ian Dixon
on Oct 05, 2011
12:28 pm
As a solar panel manufacturer we feel that we are close to parity in many cases, however again the ROI is dependent of the PPA pricing to make effecting ROI.