Many factors influence the economics and profitability of solar energy. The country will affect the amount of solar energy produced worldwide each year. For example, China's annual production of solar panels surpassed 55 GW in 2012, which is about 150% of the world's annual consumption. In addition, subsidies by the government help reduce solar panel production costs.
LCOE for PV and ES combined generation system
Levelized cost of electricity (LCOE), should be taken into consideration when evaluating the value of a PV/ES system. This metric aids in making decisions about the best components to invest in. However, LCOE is not perfect and decision-makers need to consider other indicators.
LCOE is the total cost of generating electricity, including the initial investment, operations and maintenance, and the cost of fuel. It is important in making investment decisions. It determines whether the project will be financially viable. If a system does not make money, the firm will most likely look for other ways to generate electricity.
Renewable energy technologies are lower than other technology, unlike many others, such as coal, nuclear, or combined cycle gas. The lowest LCOE in America is the utility-scale solar. This source uses both thin-film panels and crystal silicon. In addition, utility-scale solar is much more cost-competitive than utility-scale wind, which is the most expensive of conventional sources of electricity.
Low LCOE regions can realize the most potential for less than 180 dollars per MWh-1. These costs vary depending on where the country is located and what its latitude is. The U.K. and Northeastern U.S.A are the most affordable places to deploy RTSPVs. The cost to meet country-specific opportunities in these areas is between 110 and 160$ MWh-1.
The Levelized Cost of Energy (LCOE), is a method of estimating energy costs for a combined PV/ES system. This calculation reflects the costs of production, transportation and installation for a PV/ES combined generation system. Therefore, the LCOE may differ from the cost to generate.
Grid parity requires solar PV to be more affordable than traditional energy sources in certain regions. The cost of electricity generated by PV plants has already reached this point in specific locations and, in the future, the technology will become the most cost-effective source of electricity in large areas.
Due to intra-annual variations in solar insolation, the RTSPV potent exhibits seasonal variation. The monthly global potentiy is between 1.84 and 2.61 PWh. The lowest levels are in December or January. This seasonal variability is most prominent in areas above 45deg N. These include Europe, Russia, the USA, and Asia. The intra-annual variation is greatest in the West European region where the solar potential is between 94 TWh and 255.