PV system costs may drop by 20% in 2013

Recently, German centrotherm photovoltaics AG has expressed its opinion on how to make photovoltaics more competitive at the Intersolar exhibition in Munich, the world's largest photovoltaic exhibition: if the production process closely linked to the solar value supply chain can be further optimized, then The cost of photovoltaic systems in 2013 will fall by 20%. The cost of newly installed PV systems in Germany will save about 1.6 billion euros. Even by the end of 2013, the world will save about 10.5 billion euros.

"By improving the production process of polysilicon, solar cells and components, we can save more than one-third of the cost," explained Dr. Peter Fath, chief technology officer of centrotherm photovoltaics, a global provider of photovoltaic technology and equipment. Raw material costs, inverters and system installations include about two-thirds of the cost. "If other participants in the photovoltaic value supply chain can perform their duties and go through the system installation process, then by the end of 2013, the price of the system will have dropped by 20%, to around 1930 Euros per kilowatt-hour.

Another point of concern for us is the high conversion efficiency of solar cells, because of the enormous potential and the further reduction of costs. "Our goal is to increase solar cell conversion efficiency to 20% by 2013 at the latest - that is, to invest in large-scale production, not just laboratory data," Dr. Fath continued. "As a result, we will continue to develop at full speed." According to rough calculations, a 1% increase in conversion efficiency will reduce production costs by about 6%.

Higher production capacity can form a large-scale economy and further drive the reduction of production costs. This trend is particularly significant in the Asian market. Creating an integrated plant that covers the entire solar supplier can further create significant cost effects. This also prompts the suppliers and other producers to reduce their profits.

"In the next few years, the cost of solar energy will be further reduced and it will be attractive." Dr. Fath sang for the future of photovoltaics. Perhaps two years later, the price of electricity in Germany may fall to 12 to 16 cents per kilowatt-hour. With the cost of power generation reaching 7 to 8 euro cents per kilowatt-hour, renewable energy will compete with traditional power and achieve parity on the Internet after five years. The complementary advantages of wind energy and solar energy will minimize the power storage capacity.

"We have found that the combination of photovoltaics and other renewable energy sources will make a crucial contribution to the withdrawal of nuclear power in Germany and other countries," said Robert M. Hartung, board director and chief executive officer of Centrotherm Photovoltaic AG.