EFY Times  
Tuesday, June 30, 2015

 
GO
 
 

Solar Power To Become Cost-Competitive
 
Home >> Infotech >> Trends
 
Solar Power To Become Cost-Competitive  
 
“The future of solar PV looks rather bright. The industry has consistently been able to lower the cost of solar panels.”   
Rate this news:  (0 Votes)
Monday, June 18, 2012 The future of solar power is undecided as yet. The environment-friendly quotient of generating electricity through solar power has been widely accepted but when the economic traces come in the picture, one may not agree. 'The Prospects for Cost-Competitive Solar PV Power' by Stefan Reichelstein, William R Timken, professor of Accounting at the Stanford Graduate School of Business, and Michael Yorston, graduate student in the Department of Management Science and Engineering at Stanford University, discusses the future of solar power and economic aspects associated.

Their paper breaks new ground in studying the life-cycle cost of electricity generated by solar photovoltaic, paying particular attention to key factors such as location, public subsidies, and the long-term learning effects in manufacturing solar panels.

Solar PV, Solar Power, solar panels, The Prospects for Cost-Competitive Solar PV Power,Stefan Reichelstein, William R. Timken Professor of Accounting at the Stanford Graduate School of Business, and Michael Yorston, graduate student in the Department of Management Science and Engineering at Stanford University, solar photovoltaic, natural gas, solar installations,Renewable energy, retail electricity prices,Economic Stabilization Act of 2008, federal tax, fossil-fuels, economics of solar power




Professor Reichelstein discusses the findings below:

Why did you decide to study the economics of solar photovoltaic power at this time?

Renewable energy and solar in particular remain rather controversial in the public debate about energy policy. Passions have been running high. What motivated me is the bewildering range of statements you have out there regarding the cost effectiveness of electricity based on solar PV. Given the range of opinions, I wanted to do my own analysis. I’m looking at it from the point of view of a business economist who is interested in measuring the life-cycle cost of this abundant energy source.

Your main conclusions?

Solar PV is not yet competitive with fossil fuel, like natural gas, from the perspective of a utility that can either build a new natural gas power plant or invest in solar installations.

For a commercial power user, say a business with plenty of rooftop space, the cost of generating your own electricity is now on par with what the business would need to pay in retail electricity prices. In that sense, grid parity has been achieved for commercial-scale installations. However, I need to add immediately that this is subject to two important qualifiers. The facility has to be in a favorable location, such as the Southwestern United States, and secondly the business must be able to take advantage of the current federal tax subsidies.

Concerning the future, and this may sound like a pun, the future of solar PV looks rather bright. The industry has consistently been able to lower the cost of solar panels. If this trend can be maintained for the next 10 years, and if subsidies are continued for that period, there is a real prospect for solar to become cost competitive on its own (that is, without a subsidy), at least for commercial installations. Utility-scale installations will take longer to become competitive; possibly 15 years, though it obviously becomes murkier to make projections that far into the future.

What happens if subsidies disappear or are sharply reduced?

The current federal tax subsidies come out of the Economic Stabilization Act of 2008 and will be in place until 2016 unless Congress changes the rules. The solar panel manufacturing industry has been on a remarkably steady learning curve for several decades now, which has pushed down the systems price of solar panels at a dramatic rate. However, this learning curve seems very much dependent upon production volume. So, if the tax subsidies were to cease, new production volume would probably be lower, and the effect of that would be to slow down the rate of cost improvements.

If the current preferential tax treatment is kept in place for about the next 10 years, and the observed learning curve holds up, we are projecting that, at that point in time, solar-generated electricity would be competitive with that generated from fossil-fuel power plants.

Why will it take longer for utility-scale installations to stand on their own, than for commercial-scale installations?

You have different benchmarks. For commercial-scale – and also for residential — solar, the benchmark is the retail price of electricity, while for utility-scale projects it is the wholesale price. The difference between the two is the cost of transmission, distribution, and administration; that is, everything that gets you from generating the power to delivering it to your customers.

What is driving the economics of solar power?

A mix of federal tax incentives has been especially helpful to commercial-scale installations, and even to home installations. We’ve also seen dramatic growth in recent years of utility-scale installations despite their current cost disadvantage relative to fossil fuel power plants. The reason appears to be the additional subsidy mechanisms at the state and local level. Here in California, Assembly Bill 32 (a 2006 law that set goals for reducing greenhouse gas emissions) and the state’s “renewable portfolio standard,” which requires that 33% of California's electricity come from renewable resources by 2020, seem to be driving demand. Other countries (such as Germany) have different subsidy mechanisms that yield similar effects.

Priyanka swami, EFYTIMES News Network


Print Email Post Comment 
(Total Views: 2961)
 
Share

 
 
Infotech News
   
Indians Spend 47% Of Time On Communication Applications
LINE Lights Up Times Square with New Video Showcasing Auto-Suggest Feature
Indian Software Market Back On Growth Track; Shows Consistent Growth
iBall Introduces India's Cheapest Phone With Rotating Camera
Microsoft Launches iPad Version Of Sway
 
 
 
     
     
     
     
     
     
Most popular
 

Daily

Weekly

5 Ways To Get Ready For Big Data
Microsoft's Premium Services Now Available On Android Devices
Top 10 Free Bootstrap Templates
WhatsApp Releases Voice Calling Feature For Windows
7 Awesome Yet, Free Tools For Your Startup
OnePlus 2 Will Feature Next-Gen USB Connector
5 Tricks For Effective Email Marketing Campaign
Now Sign Up For Messenger Without A Facebook Account
Gmail Now Allows You To 'Undo' E-Mails
Apple Invents New Material To Hide Antenna Lines On Its Devices
Facebook Joins Hands With Kaspersky Lab; Announces A New Security Tool
OnePlus To Introduce Its Next Flagship Device
Google Boosts Quality Journalism; Launches News Lab
6 Google Apps Features That You Probably Didn't Know
Creative Unveils Sound Blaster Free Bluetooth Speaker
Amit Pradhan Joins Vodafone As Chief Technology Security Officer
 
   

Overall

Features
6 Google Apps Features That You Probably Didn't Know
Google apps has plenty of useful features to ease your business communication....
5 Tricks For Effective Email Marketing Campaign
Email marketing has been very effective in the growth of e-commerce business....
Top 10 Free Bootstrap Templates
You can use readily available Bootstrap HTML templates to quickly develop your website...
Top 4 Latest News Apps
The news app launched in last month changed everything for readers!...
7 Awesome Yet, Free Tools For Your Startup
Building a start-up can be hard but, you can use free tools to simplify the starting...
Top 5 Powerful Mini PCs That You Can Buy Today!
Pocket size Mini PCs save lot of space and power...
5 Things Successful People Practice Everyday
Success doesn't come overnight, you have to change your habits and style of work to get success....
Top 7 Smartphones Recently Launched !
Chinese manufacturer, Gionee launched two flagship devices this week...
4 Examples That Prove Technology Has Gone Too Far
Today, we are facing greater and terrifying implications of rapidly advancing technology than ever before.We must know when to draw the line...
7 iOS 9 Features That Apple Copied From Android
Some of the new features in iOS 9 are actually quite old to Android users...
How Much Will Windows 10 Cost?
Find out how much Microsoft will charge users who are not qualified for the free upgrade...
5 Barriers To Overcome While Learning to Code
You can get ample of benefits once you overcome these common learning barriers...
7 Android Apps To Make You Smarter!
Now train your brain with smartphone apps!...
5 Reasons Why Twitter Is Failing To Make Money
The company continues to make loss after resignation of CEO Dick Costolo!...
10 Things About Mark Zuckerberg's Fabulous Life
Mark prefers to spend on his privacy than flashy lifestyle...
 
  View All
Dialogue
 
“One Day The End User Can Open Up A Used Battery, And Use What’s Inside As Barbecue Sauce”
Of course that is not something currently possible, but what B&B Batteries does have are some secret recipes for their very specialised battery design...
We Wish To Procure All The LED Components Within India: Avni Energy
G. Gururaja, director, Avni Energy Solutions Pvt Ltd, shares his views about the expanding LED industry in the Indian market and the company's plans i...
We Have Registered 50 Per Cent Growth In The Last Two Years: Arihant Lighting
Apart from LEDs, Arihant is associated with the promotion of renewable energy in India and therefore, manufactures various energy saving products....
“Elcom Plans To Build A New State Of The Art R&D And Manufacturing Unit In Maharashtra", Reveals MD Girish V Vaze
Starting out as a small business to cater to the industry’s need for import substitutes, Elcom International has grown to be a leader in the field of ...
Delta Magnets Ltd To Enter Into JV With Chinese Company!
The company had partnered with TDK Japan for technology transfer to manufacture magnets in India....
   
  View All
Videos
 
First Look: LG Optimus G
The phone sports a high-end display and comes powered by a powerful processor. ...
Create QR-Codes For Free
TEC-IT releases the freeware QR-Code Studio to provide a quick and convenient way of QR code creation for every application scenario....
DoT Secretary Shares Plans For Growth Of Telecom Sector
M.F. Farooqui has recently taken charge as secretary, Department of Telecom....
Hands-On: Sony Xperia Z
Xperia Z is Sony's first entrant model in the big-screen smartphone category. ...
Hands On: Videocon A30 Smartphone
Videocon, the consumer electronics company which is known for its refrigerators, washing machine and air-conditioner has unveiled its Android-based sm...
   
View All
   
 
IFA 2014
 
IFA 2014: LG Launches 34-Inches Curved Monitor
The company is yet to confirm price and availability of the device....
IFA 2014: Intel Launches First Core M Range Of Processors
This range of processors is tailor-made for 2-in-1 devices which include a tablet and a laptop....
MWC 2014: Tablet Lets People Feel Textures On Its Screen
Now feel what you see on your tablet, by way of ultrasonic waves....
MWC 2014: 4K Android Tablet Games To Kill Consoles, iPad
Tablet makers like Samsung want to beat the iPad by making 4K tabs. ...
MWC 2014: This Vodafone Backpack Helps Get Network In Disaster Situations
Two engineers of Vodafone New Zealand displayed the "mini" mobile network by Vodafone substructure in a backpack. ...
MWC 2014: Wilocity Chipset To Bring 'Lightening' Speed To Mobile Phones
Wilocity has developed a WiGig chipset for mobile phones that will bring lightning-fast wireless capability ...
MWC 2014: Samsung Introduces Octacore, Hexacore Chipsets
The Korean giant, Samsung unveiled two new octacore and hexacore chipsets at MWC 2014, in Barcelona. The company previously used Exynos 5 Octa 5410 ch...
   
View All
   
 
Events
 
19th Consumer Electronic Imaging Fair To Be Held On ...

View All
   
   
 
 

home archives contact us advertise with us
           
Magazines Portals Directories Events News Verticals Educational Institute  
Electronics for You
Open Source for You
Electronics Bazaar
electronicsforu.com
efytimes.com
opensourceforu.com
electronicsb2b.com
Electronics Annual Guide
EFY EXPO INDIA
EFY EXPO WEST
ELECTRONICS ROCKS
EFY Awards
OSIDAYS Expo
Electronics
Infotech
Linux & Open Source
Consumer Electronics
Science & Technology
BPO
EFY Techcenter

Educational Kits
Kitsnspares.com  
 
 
© Copyright 2015 EFY Enterprises Pvt. Ltd.
All rights reserved. Reproduction in whole or in part in any form or medium without written permission is prohibited.
Usage of the content from the web site is subject to Terms and Conditions