Module and Solar Cell Values as Function of Efficiency

Summary

The economic value of a photovoltaic solar module in a complete system, based on the price of the energy delivered, depends on the area-related balance-of-system costs and the conversion efficiency of the module. This is shown analytically. Once a module with a certain efficiency is, or is assumed to be, on the market, the value of modules of differing efficiencies is fixed, for given array construction and installation costs. When these costs are comparable in magnitude to the module prices, a strong dependence exists of the module price, in $/W(peak), on the efficiency. When these costs are negligible, the module price in $/W(peak) approaches efficiency independence. Thus, present projections of future B-O-S costs determine the module development to be undertaken. This poses a policy dilemma, as a wrong projection now would create the wrong emphasis in the R & D programs, and hurt the future commercial viability of the systems.