There are many factors which influence the economics in solar energy. The country will affect the amount of solar energy produced worldwide each year. China's annual solar panel production topped 55 GW in 2012, an amount that is close to 150% the world's annual demand. The government subsides solar panel production.
LCOE of combined generation system PV/ES
A levelized cost for energy (LCOE), can be used to assess the PV or ES system's value. This metric aids in making decisions about the best components to invest in. However, LCOE is not perfect and decision-makers need to consider other indicators.
LCOE represents the total cost of generating electric power, which includes all costs associated with initial investment, operations and maintenance as well the cost of fuel. It is important in making investment decisions. It determines whether the project will be financially viable. If a system is not profitable, a firm will likely seek other means to generate electricity.
Renewable energy technologies are lower than other technology, unlike many others, such as coal, nuclear, or combined cycle gas. For example, utility-scale solar has the lowest LCOE among all sources of electricity in the U.S. It is based on both thin-film solar cells and crystalline silicon. Utility-scale solar also has a lower cost of operation than utility-scale wind. This is because utility-scale is more competitive in terms of costs.
Low LCOE regions can realize the most potential for less than 180 dollars per MWh-1. The costs of achieving this potential vary significantly depending on the country and its latitude, although the U.K. and the Northeastern U.S.A. are considered to be the cheapest places for RTSPV deployment. These countries have country-specific capabilities that cost between 110 to 160 $ MWh-1.
The Levelized Cost of Energy (LCOE), is a method of estimating energy costs for a combined PV/ES system. This calculation represents the cost of production and transportation as well as the installation costs for an ES or PV combined generation system. The LCOE will vary from the cost generated.
Solar PV is more cost-effective than traditional energy sources to achieve grid parity. The cost of electricity generated by PV plants has already reached this point in specific locations and, in the future, the technology will become the most cost-effective source of electricity in large areas.
Because of the seasonal variability in solar radiation, the RTSPV potential can show seasonal fluctuations. The monthly global potentiy is between 1.84 and 2.61 PWh. The lowest levels are in December or January. This seasonal variation is highest in regions over 45deg north. This region includes Europe, Russia, USA. The intra-annual variation of solar power is high in the West European region. It has solar potential between 94 and 265 TWh.