Page 29 - European Energy Innovation - Winter 2016 publication
P. 29
Winter 2016 European Energy Innovation 29
PHOTOVOLTAICS
Costs and Economics
of Electricity from Residential PV
Systems in Europe
By Arnulf Jäger-Waldau (pictured), European Commission, Joint Research Centre,
Renewables and Energy Efficiency Unit
Over the last decade, There are in principle two methods,
prices for residential to increase the direct consumption
grid-connected PV (“Self-Consumption”) of solar electricity.
systems have decreased One is to use intelligent control
significantly, as shown in Fig. 1. The systems, which switch major loads
increase in PV system prices in Japan, (washing/dryer machines, heat pumps,
between 2007 and 2010 as well as the refrigerators, air-conditioners) on
increase from 2015 to 2016, are due to when the sun is shining. The second
changes in exchange rates; in the local one requires a means to store the
currency the prices fell further. energy, either as electricity which
requires accumulators, or as “product”,
In September 2016, the worldwide (heatstorage, cold-storage or pumped
average price of a residential system water), for use at night or rainy days.
without tax was given as USD 1.67/ Storing electricity has the additional
Wp (EUR 1.49/Wp) about 25 % higher advantage of making energy offers
than in Europe with EUR 1.21/Wp or to the network operator at times the
Australia1. T aking the European price operators chooses as being profitable.
and adding a surcharge of EUR 0.14/
Wp for fees, permits, insurance, etc., an Nevertheless, some fraction of the
installed PV system costs EUR 1 350/ electricity generated has to be sold
kWp without financing2 and VAT. The to the grid. The question is what kind
influence of the European VAT rates on of pricing should be used – contract,
investment costs and LCOE are shown wholesale or day-ahead prices. The
in the European Cost Maps3. fact that the costs of PV-generated
As shown in a growing number of Fig. 1: Residential PV system price development over the last decade (data sources:
countries, electricity production IEA PVPS, BSW, DoE SunShot Initiative, Eurostat, OECD key economic data)
from residential PV solar systems
can be cheaper than the variable Residential PV system Price [EUR2016/Wp]€12.00 Germany
part of residential electricity prices, €10.00 Japan
depending on the actual electricity USA
price and the local solar radiation
level. Therefore, using self-generated €8.00
electricity provides a means to lower
the electricity bill on one hand, and €6.00
to avoid excessive penetration of
PV generated electricity in the grid €4.00
network. In the case of a PV system
size that generates as much electricity €2.00
as the customer uses over a year, the
actual consumption during the time €0.00 2002 2004 2006 2008 2010 2012 2014 2016
of generation is in general about 25%- 2000
30% on residences, in commercial Year
buildings it can be more4,5.
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