Cost of solar power could come down by as much as half by 2030

Cost of solar power could come down by as much as half by 2030

KIC InnoEnergy, the innovation engine for Europe’s energy industry has published a report revealing the role innovation could play in reducing the costs of producing electricity from the sun, by as much as half of their current levels, by 2030.

The report, which was developed by a working group of eight industry experts, used the new photovoltaic module of KIC InnoEnergy’s Delphos modelling tool to track the effect that a range of innovations could have on the costs of solar photovoltaics over the next decade and a half.

Over 30 technological innovations were identified as having the potential to cause a reduction in capital investment costs of 20%-30% through changes in the design of hardware, software or other processes.

Furthermore, the modelling showed that as innovations increased the efficiency of photovoltaic components, significant economies of scale would also be unlocked in supporting infrastructure such as cabling and fix mounting systems.

When taken alongside projected savings in the supply chain and a reduction in financing costs, the levelised cost of producing electricity from solar could come down from a current range of €75-€90 per megawatt hour to just over €40 per megawatt hour by 2030, if the innovations highlighted in the report are brought to fruition and properly implemented.

 

Date: May 2016

Read the report

 


Tags assigned to this article:
costsphotovoltaicsolar

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