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The cost of photovoltaic power generation continues to fall

In the current global power generation composition, photovoltaic power generation accounted for only 2.4% as of 2018, which is still very small. The situation in China is similar, and the proportion of solar power generation in 2019 is also around 2%. As the cost of photovoltaic power generation continues to decrease, in more and more countries and regions, photovoltaics will gradually become the lowest cost power generation method.
China's photovoltaic industry leads the world
In 2019, China's photovoltaic new installed capacity, cumulative installed capacity, polysilicon output, and module output have ranked first in the world for 7 consecutive years, 5 years, 9 years, and 13 years respectively. The above records will continue to be maintained this year.
According to the 2019-2024 China Photovoltaic System EPC Industry Segmentation Research and In-depth Investigation and Analysis Report of Key Enterprises, in the first three quarters of this year, in the context of the impact of the epidemic and the sharp decline in global trade, China’s photovoltaic industry has maintained steady progress. Development trend. Among them, the output of polysilicon was about 290,000 tons, a year-on-year increase of 18.9%, and the output of modules exceeded 80 GW, a year-on-year increase of 6.7%. In terms of application market, the national photovoltaic new installed capacity was 18.7 GW, a year-on-year increase of 17%. In terms of export of photovoltaic products, the export volume of photovoltaic modules in the first three quarters has exceeded the same period last year.
According to Li Qionghui, director of the New Energy and Statistics Institute of State Grid Energy Research Institute, China's photovoltaic industry has formed a complete industrial chain that leads the world in technology, scale and cost. The power generation efficiency has repeatedly set world records, and the investment cost of photovoltaic systems has dropped by 90% from 2005. %the above. "In the past 10 years, Chinese companies have led the world in making major breakthroughs in photovoltaic technology and cost. The price of silicon wafers dropped from about 100 yuan per piece 10 years ago to about 3 yuan, and the price of modules fell from 30 yuan per watt 10 years ago to 1.7 yuan. Around.” said Li Zhenguo, president of Longji, in some areas with good light conditions, the cost of photovoltaic power generation technology can already be lower than 0.1 yuan per kilowatt-hour of electricity.

According to the statistics of the International Renewable Energy Agency, from 2010 to 2019, the global levelized cost of photovoltaic power generation, solar thermal power generation, onshore wind power, and offshore wind power decreased by 82%, 47%, 39% and 29%, respectively. . In the next 10 years, the cost of new energy power generation will continue to decline.

The cost of photovoltaic power generation continues to fall
In the past, the biggest problem that restricted the development of the photovoltaic industry was the high cost of power generation. All countries depend on subsidies for photovoltaic power generation. The high cost of power generation without subsidies will directly lead to problems in power sales.
However, the most exciting thing is that the photovoltaic industry has reduced costs by more than 90% in the past, but the potential for cost reduction is obviously not over yet, and the cost of photovoltaic power generation is expected to continue to decline. Nowadays, the cost of photovoltaic power generation has dropped to the range of 30 to 60 cents (due to differences in lighting conditions, land prices, financing costs, etc.). This power generation cost can compete with thermal power generation.
According to the leaders of the photovoltaic industry, the cost of photovoltaic power will drop to less than 1 cent within 10 years. This power generation cost can almost be compared to other power generation methods. The most important thing is that the low cost of photovoltaics is clean energy and green energy. From this perspective, the prospects of the coal and petroleum industries are rather bleak.

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