Economics of Solar System
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Transcript of Economics of Solar System
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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