There are many factors that contribute to the economics of solar energy. The country that produces the most solar power each year will determine the amount of global production. For example, China's annual production of solar panels surpassed 55 GW in 2012, which is about 150% of the world's annual consumption. The government subsides solar panel production.
LCOE of PV and ES combined generation system
To evaluate the value of a PV or ES system, the levelized cost of energy (LCOE) should be considered. This is a metric that helps you decide which parts of your system to invest in. However, LCOE does have some limitations. Decision-makers should also consider using other indicators.
LCOE refers to the total cost of generating electricity. This includes the initial investment, operation and maintenance costs, as well as the fuel cost. It is an important metric when making investment decisions as it determines the viability of a project. If a system doesn't make money, it is likely that a company will find other ways to generate power.
Renewable energy technologies, unlike other technologies, have lower LCOEs. They are less expensive than traditional energy sources such as coal, nuclear or combined cycle gases. The cheapest LCOE for any source of solar energy in the U.S. is utility-scale, which uses both thin-film and crystalline solar panels. Utility-scale sun is also much cheaper than utility scale wind, which is one of the most expensive sources of electricity.
In regions of the world with low LCOEs, most potential can be realized at less than 180 dollars per MWh-1. The costs of achieving this potential vary significantly depending on the country and its latitude, although the U.K. and the Northeastern U.S.A. are considered to be the cheapest places for RTSPV deployment. These regions have a cost of between 110 $ and 160 $ MWh-1 to fulfill country-specific potential.
The Levelized Cost of Energy, or LCOE, is a way to estimate the energy cost of a PV and an ES combined-generation system. This is a calculation that includes the cost of production as well as transportation and installation of an ES combined-generation system. The LCOE will therefore differ from the generation cost.
In order to achieve grid parity, solar PV has to be more cost-effective than conventional energy sources in some regions. This is the case for PV plants in certain locations. In the future, this technology will be the most cost-effective in large areas.
Because of intra-annual variability, the RTSPV potentiel exhibits seasonal variability. The monthly global potentiy is between 1.84 and 2.61 PWh. The lowest levels are in December or January. This seasonal variation is highest in regions over 45deg north. This region includes Europe, Russia, USA. The intra-annual variation is greatest in the West European region where the solar potential is between 94 TWh and 255.