What factors affect the annual energy yield of a solar PV project?

There are a number of factors which affect the annual energy yield of a solar PV project. The confidence level of the yield forecast is important, as the annual energy yield directly affects the annual revenue. Besides the power generated, the solar PV project revenue is dependent upon the power price.

How much did solar PV cost in 2020?

In 2020, the 7% year-on-year decline in the LCOE of utility-scale solar PV, from USD 0.061/kWh to USD 0.057/kWh, was lower than the 13% decline experienced in 2019. In 2020, too, the global weighted-average total installed cost of utility-scale solar PV fell by 12%, to just USD 883/kW.

How to reduce the cost of PV power generation in China?

To reduce this financial gap and manage the decrease of PV costs, the Chinese government published the Notice on matters of PV power generation in 2018, which is referred to as the “531” policy, reducing the subsidies for PV from 0.36 CNY/kWh to 0.32 CNY/kWh.

Are solar and wind energy costs reducing?

Looking at the figures between 2018 and 2020 reveals a compound annual rate of decline of 16% per year, which is more representative of recent rates of cost reduction. The decade 2010 to 2020 represents a remarkable period of cost reduction for solar and wind power technologies.

How to reduce the cost of electricity generation?

The cost reduction includes the decrease in initial costs, O&M costs and financing costs. Regarding the increase in electricity generation, the most important factor is related to the efficiency and the lifetime of the PV modules and the inverters.

Are solar and storage projects becoming more expensive in 2023?

This trend emerged primarily from the hybrid nature of the projects in the survey, with solar and storage projects increasingly in demand. This year’s survey also shows that nine out 10 respondents expect increases in the cost of capital in emerging and developing economies in 2023. IEA. Licence: CC BY 4.0