A Review of Solar Photovoltaic Levelized Cost of Electricity
Pathak, M. J.M.
Pearce, J. M.
MetadataShow full item record
As the solar photovoltaic (PV) matures, the economic feasibility of PV projects are increasingly being evaluated using the levelized cost of electricity (LCOE) generation in order to be compared to other electricity generation technologies. Unfortunately, there is lack of clarity of reporting assumptions, justifications and degree of completeness in LCOE calculations, which produces widely varying and contradictory results. This paper reviews the methodology of properly calculating the LCOE for solar PV, correcting the misconceptions made in the assumptions found throughout the literature. Then a template is provided for better reporting of LCOE results for PV needed to influence policy mandates or make invest decisions. A numerical example is provided with variable ranges to test sensitivity, allowing for conclusions to be drawn on the most important variables. Grid parity is considered when the LCOE of solar PV is comparable with grid electrical prices of conventional technologies and is the industry target for cost-effectiveness. Given the state of the art in the technology and favorable financing terms it is clear that PV has already obtained grid parity in specific locations and as installed costs continue to decline, grid electricity prices continue to escalate, and industry experience increases, PV will become an increasingly economically advantageous source of electricity over expanding geographical regions.
Showing items related by title, author, creator and subject.
Design of Transparent Conducting Electrodes and Surface Relief Gratings for Plasmonic Polymer Solar Cells Zhan, Jimmy (2016-08-25)As the concept of renewable energy becomes increasingly important in the modern society, a considerable amount of research has been conducted in the field of organic photovoltaics in recent years. Although organic solar ...
Lee, Elizabeth (2014-09-29)Solar thermal combi-systems use solar energy to provide thermal energy for space heating and domestic hot water. These systems come in many different designs and configurations, and their performance is dependent on many ...
Pearce, Joshua M. (Emerald, 2006)Purpose: This paper explores the use of the purchase power of the higher education system to catalyze the economy of scale necessary to ensure market competitiveness for solar photovoltaic electricity. Design/methodol ...