Economics of Solar System

8/8/2019 Economics of Solar System

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ECONOMICS OF SOLAR SYSTEM

SUBMITTED BY SUBMITTED TO

ROHIT SHANKAR & ONURABH MALLICK Mr. PANKAJ CHANDEL

B. Tech ( ME ) DEPT. OF MECH. ENGG.


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ECONOMICSOFSOLARENERGY ?

Understanding economics of solar energy, helps us to

better understand to afford solar.

For industrial purpose, economics is to understand

how much cost can they cut while using the solar

equipment.

For home users, economics is largely determined by

the costs and incentives of the solar applicationstheyare interested in.


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INTRODUCTION

New era for solar power is approaching.

By 2020, global installed solar capacity could be 20 to

40 times its level today.

Even if all of the forecast growth occurs, solar energy

will represent only about 3 to 6 percent of installed

electricity generation capacity. Lower carbon emissions.


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EVOLUTION OF TECHNOLOGY

Government policies will also continue to influencethe sectors development heavily.

Solar power is still a few years away from true grid

parity- the point when the price of solar electricityis on par with that of conventional sources ofelectricity on the power grid.

The time frame is considerably longer in countries

such as China and India, whose electricity needs willrequire large amounts of new generating capacity inthe years ahead and whose cheap power from coalmakes grid parity a more elusive goal.


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BIRTH OF SECTOR

The solar sector includes the manufacturers of the

silicon wafers, panels, and components used to

generate much of todays solar power.

As the installers who put small-scale units on

individual roofs, utilities and other operators setting

up enormous solar collection systems in deserts.

Start-up companies striving for breakthroughs such

as lower-cost thin-film technologies.


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BEYOND SUBSIDIES

Government subsidies have played a prominent role

in the growth of solar power.

Over the last two decades, the cost of manufacturing

and installing a photovoltaic solar-power system hasdecreased by about 20 percent with every doubling

of installed capacity in comparison to those of

conventional power sources.


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TILL 2020

The price of solar electricity falling from upward of 30 cents

per kilowatt-hour to 12, or even less than 10, cents.

Global solar capacity will grow by roughly 30 to 35 percent a

year, from 10 gigawatts today to about 200 to 400 gigawatts. Even though this volume represents only 1.5 to 3 percent of

global electricity output, the roughly 20 to 40 new gigawatts a

year of installed solar capacity would provide about 10 to 20

percent of annual new power capacity. Would result in 125 to 250 megatons of carbon dioxide

roughly 0.3 to 0.6% of global emissions in 2020


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EVOLVING TECHNOLOGIES

Thin Film Photovoltaics

Concentrated Solar Thermal Power

Silicon Wafer Based Photovoltaics


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SALIENT FEATURES OF

AVAILABLE TECHNOLOGIES

Silicon-Wafer-Based Photovoltaics (SWBP)90% of installed solar capacity

Requires less space

Achieve efficiencies in the 20 to 23 percent range

Thin-Film PhotovoltaicsBest suited for large field installation

Lower Efficiency but requires only 1 to 5% of material used in SWBP

Concentrated Solar Thermal PowerCheapest available

Requires almost perfect solar conditions & vast quantities of open space


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SOLAR COMPENENTS

MANUFACTURING

Raw MaterialsPolysilicon is the main raw material for SWBP

Global Polysilicon production capacity will triple from 2005 to 2010

Price of polysilicon could drop from 200$/Kg to 30 to 50$/Kg

Production Process technologyAn equipment company, Applied Materials can provide entire manufacturing linesCell manufacturers are valuable partners for equipment companies

Producing in Low-Cost RegionsMany leading SWBP solar companies are located in high-wage countries

German & USA cells achieve an efficiency of 20% or more while Chinese ones have

15 to 16% efficiency

China and India will inevitably gain an overall cost advantage by developing the skills

needed to produce more efficient cells


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TRANSITIONDistributed nature of solar power might seem to clash with business model of

centralized electricity generation

Power generation companies have long standing relationship with customers

integrate electricity generated at large numbers of different locations (such as

rooftops) into the existing network

The technology that currently seems most attractive for utilities is concentrated

solar thermal power, because it involves centralized electricity generation


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THE ROAD AHEAD

The necessary technological breakthroughs willcome from solar-component manufacturers

Companies will have difficulty driving the

penetration of solar power unless they have a much

clearer sense of the cost potential of different solar

technologies

In some regions, regulators can accelerate the move

toward grid parity, as they did in California andGermany, but they cant reduce the real cost of solar

power


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GOVERNMENTS & REGULATORS

Government policies in rapidly growing emerging markets such as

China and India will be particularly important for the pace of thesectors growth

If China installed rooftop solar panels on, say, 13 percent of all new

construction in 2020, the country would add 15 gigawatts of solar

capacity a year, about 40 percent of the worlds annual increase

CLARIFY OBJECTIVES - Before establishing policies, regulators must

decide whether they want to increase energy security, lower carbon

emissions, build a high-tech manufacturing cluster, create jobs for

installers, or any combination of these goals

REWARD PRODUCTIONNOT CAPACITY

PHASE OUT SUBSIDIES CAREFULLY

Component manufacturers, utilities, and regulators are making

decisions now that will determine the scale, structure, and performance

of this new sector

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Economics of Solar System