A new metric to evaluate the economic feasibility of cell efficiency increase
- Researchers have introduced a new metric for determination of the highest allowable cost for cell efficiency increase and levelized cost of electricity optimization. The scientists have called this new parameter ‘value of efficiency’.
An international research team has developed a new parameter for defining when efficiency increasing of a definite PV cell is economically feasible. The new factor has been called ‘value of efficiency’.
The group of scientists from USA and Singapore affirm the new index will allow determining the highest acceptable cost for cell efficiency increasing, which is meant to optimize the LCOE.
This cost limit was developed based on the correlation of production costs and efficiency, and is meant to determine the conditions required to keep the levelized energy cost constant. The researchers emphasize that VOE depends on the correlation between the costs of solar device and installation. The research has been based on the U.S. costs for photovoltaic installations.
In the earlier years, VOE has decreased fast and is predicted to continue falling. However, in the coming years, the gap between the large-scale and residential sectors is expected to become more evident. VOE will be more crucial for solar solutions for home use.
As well, the scientists expect more regional diversity throughout the globe in the future. The highest efficiency value is forecasted for such regions as New Zealand, Australia, Japan, Northern and Central Europe, as well as North America.
