Economics of solar cells

Summary

The transcript explores the rapid advancement of renewable energy, focusing on wind and solar power. Wind is already cost-competitive in many areas, while solar PV has seen a dramatic cost reduction of about 22% with each doubling of global capacity. Solar produces energy primarily during peak demand hours, aligning with high electricity prices, but cannot generate power at night, highlighting the need for storage solutions. Large-scale storage remains expensive, making small-scale home batteries a practical near-term option. Overall, the discussion emphasizes the growing viability of renewables, the economic and systemic benefits of solar, and the important role consumers play in energy production and storage.

Takeaways

• 😀 Wind power is one of the most viable renewable energy sources, especially offshore, though it can be slightly more expensive than onshore.
• 😀 Solar photovoltaics (PVs) have experienced a significant cost reduction in recent years, making them much more affordable compared to a few years ago.
• 😀 The cost of solar power is predicted to decrease by 22% each time the global installed capacity doubles, with this happening approximately every 2-3 years.
• 😀 Despite solar power's rapid cost decline, it is still more expensive than some other energy sources, requiring more installed capacity to meet energy needs.
• 😀 Solar PVs typically generate power for about 1,000 full-load hours per year, significantly less than traditional centralized power plants (4,000-5,000 hours).
• 😀 Wind power generally produces power for 2,500-3,000 full-load hours per year, making it a more consistent renewable source compared to solar.
• 😀 Solar power is particularly valuable during peak demand hours, as it generates electricity when the demand for power is highest (morning and evening).
• 😀 Solar power’s generation coincides with the time of day when electricity prices are highest, making it economically beneficial during peak demand periods.
• 😀 Storage solutions for solar energy are still expensive, limiting their widespread use for large-scale power systems, but small-scale storage is likely to become more common in private households.
• 😀 Consumers with rooftop solar installations may benefit from storing their own energy to use during non-sunny periods, reducing their reliance on the grid and avoiding energy taxes on self-generated power.

Q & A

How has the development of renewable energy technologies, such as wind power and solar photovoltaics, changed in the last five to ten years?

Renewable energy technologies, including wind power and solar photovoltaics, have advanced rapidly in the last five to ten years. Wind power has become the most viable renewable energy source in many areas, with some places reporting it as the cheapest way to generate power. Solar photovoltaics have also seen a dramatic drop in costs, particularly in the last five to six years.

What is the current cost trend for solar photovoltaics?

Solar photovoltaics have experienced a rapid decline in cost. A few years ago, solar energy was quite expensive, but now it is much cheaper. The cost of solar energy drops by 22% every time the global installed capacity doubles, which typically happens every two to three years.

How much more expensive is offshore wind energy compared to onshore wind energy?

Offshore wind energy is generally more expensive than onshore wind energy. However, this cost difference is decreasing as technologies improve and costs drop over time.

What are full load hours, and how do they compare across different energy technologies?

Full load hours refer to the number of hours a power plant would need to operate at full capacity to produce the same total amount of energy as the technology being compared. Solar power has about 1000 full load hours per year, wind power has between 2500 and 3000 full load hours, while a small conventional power plant would have around 4000 to 5000 full load hours per year.

Why is solar energy considered advantageous despite its intermittent nature?

Solar energy is advantageous because it aligns with peak demand periods during the day, typically starting at 8-9 AM and peaking again in the late afternoon. This makes it an ideal source of power during times when energy demand and prices are highest, even though it cannot provide energy at night.

What challenges are associated with solar power during the night?

Solar power cannot generate electricity at night, which creates a challenge for its use in meeting energy demand during evening hours. This issue requires either additional technologies or storage solutions to provide power when the sun is not shining.

What role does energy storage play in the future of solar energy?

Energy storage is crucial for addressing the intermittent nature of solar power. However, large-scale storage facilities remain expensive and are not expected to become widespread in the next 10 to 20 years. Smaller storage solutions, such as those for private homes, may be adopted sooner, helping consumers store excess solar energy for use at night or during cloudy periods.

How does energy storage benefit homeowners with rooftop solar panels?

Homeowners with rooftop solar panels can benefit from energy storage by storing excess energy generated during the day for use in the evening or when the sun is not shining. This allows them to reduce reliance on the grid, making their energy consumption more self-sufficient.

What is the current status of large-scale energy storage solutions?

Large-scale energy storage solutions are still in the early stages of development due to high costs. It's unlikely that such systems will be deployed extensively in the near future, but smaller, decentralized storage systems for private homes may be adopted sooner.

How do tax regulations impact homeowners with solar energy storage systems?

In many cases, homeowners with rooftop solar panels are not taxed on the energy they generate themselves, as these systems are not registered in the same way as energy drawn from the grid. This provides an indirect financial benefit to consumers who produce their own energy, as they can avoid paying taxes on the electricity they generate and store.