THE PHOTOVOLTAIC

TECHNOLOGY
Ing. S. Castello
castello@casaccia.enea.it
ENEA, Renewable Sources Sector

July 2006

SUMMARY
PV plants features
Applications
Stand alone plants
Grid connected systems and Distributed
generation
Demonstrative projects
Tracking and concentrating systems
Market
PV industry
Plant and kWh costs
Diffusion programmes

PV TECHNOLOGY
The technology is relatively recent:
Foundation was laid in the early 50: first modern c-Si
cell discovery (Bell Telephone Laboratories)
1958: first application successful used in space
(Vanguard I)
late 70: starting of terrestrial application and
development of market.
From then on the technology has shown a steady
progress, the costs have recorded a constant reduction
but remain still high in comparison to the other
renewable sources

PV ENERGY ADVANTAGES
Use of an inexhaustible and free fuel
Environmentally friendly
Good reliability, higher than wind turbines or diesel
lasts more than 30 years
low maintenance cost
Fully automated operation
Low risk
capital intensive but low O&M costs
Modularity
the required power is obtained using a number of the same
building blocks
Exploitation of not utilized surfaces capability
PV can be mounted on roofs, integrated in building skin or
installed in marginal areas (deserts)

THE PV PLANTS
Systems able to collect and convert light into useful electricity
to be delivered to specific appliances or into the electric grid
2 main categories
Stand-alone: to supply isolated users (from consumer to
decentralized rural electrification)
Grid-connected: to fed power to the electric grid (from small
roofs to power stations)
plant components
PV array and power conditioning unit (PCU) or
modules and balance of system (BOS)

THE COMPONENTS
PV array (Pnom, Vw)
A number of PV modules
Cables and protection devices
Structure (to support and to expose the module for maximum
light capture)
PCU
Stand-alone plants
Matches the array output to the load requirements
Manages the storage system
Grid-connected plants
Convert the dc array output to standard ac power
Fit the PV array output to the grid (MPPT)
Control the quality of the energy supplied to the grid
(distortion and power factor correction)

THE COMPONENTS

PV modules
The smallest electrical unit of PV plants, formed with solar cells
assembled in series/parallel configuration
encapsulated
Mechanical and corrosive protection of cells and their
interconnection (long operation life)
Electrical isolation of the voltages generated
material used for encapsulation: glass tempered glass or plastic
frame: metal or plastic
features required
ultraviolet stability
tolerance to temperature and heat dissipation ability
self cleaning ability

THE COMPONENTS

BOS
Cabling
Switching and protection devices
Battery
Charge controller
Dc/ac inverter
Module supporting structures
Engineering
Labour to install a turn-key system

STAND ALONE PLANTS

When well suited:
Remote site far from the grid
Maintenance and fuel expensive (transport)
Reliability is paramount (tlc, signaling)
Simplicity required (remote houses, schools)
Transportability (navigation laps, laptop computers)
Intermittent power acceptable (fans, pumps)
Noise and pollution-sensitive environments (parks)
Reducing fuel consumption (small grids)

STAND ALONE PLANTS

Already competitive with diesel generator for load lower than
few kWh/day
Preferred option for high value applications
Key technology for off-grid application, but further decrease of
cost is essential to facilitate their use
Costs higher then grid connected systems (batteries) but
already with its own nicks market
Applications:
Domestic
Industrial
Electrification in Developing Countries

DOMESTIC APPLICATIONS

Remote users (economic alternative to utility grid at distance > 1 2 km)

Rural electrification (0,5 1,5 kW). light, refrigeration and other low power loads
Lighting of isolated areas with PV lamps (100 W) or centralized systems (110kW)

Consumer
Watches, calculators (mW), lamps (10 W)

INDUSTRIAL APPLICATIONS
First terrestrial high value applications (PV costs negligible in comparison to the
service provided)
Competitive with other small generating systems
Telecommunication
0,5 10 kW
Cathodic protection
0,5 5 kW
Signaling and data acquisition
0,1 1 kW
Park-meter or Emergency telephones (highway) 10 20 W

ELECTRIFICATION IN DEVELOPING COUNTRIES

1.7 billion people is aimed to:

Basic needs: refrigeration and lighting for sanitary use, potable water
Quality of live improvement: lighting in houses streets and schools,
telephone, radio and TV services
Small scale economic development: water for irrigation and livestock,
motorization for small craft and mills

IEA Source

SMALL STAND ALONE PLANTS

CHARGE
CONTROLLER

PV MODULES
DC LOADS
BATTERY

REMOTE DWELLINGS
DC LOADS

PV
GENERATOR
GENERATOR

CHARGE
CONTROLLER

BATTERY

DC/AC
INVERTER

COMMERCIAL
AC LOADS

VILLAGE ELECTRIFICATION

PV
GENERATOR
GENERATORE

CHARGE
CONTROLLER

BATTERY

DC/AC
INVERTER

RECTIFIER

LOADS

DIESEL

WATER PUMPING
PV
GENERATOR
GENERATORE

PV
GENERATOR
GENERATORE

DC/AC
INVERTER
(FREQUENCY
VARIABLE)

DC PUMP

PUMP
(CENTRIFUGAL
OR
RECIPROCATING)

WATER

TANK

CATTLE
WATERING
TANK

SPRINK

GRID CONNECTED SYSTEMS

Not competitive yet, but potentially able to make a substantial contribution

to sustainable electricity production in industrialized countries.

Applications:
Diffuse generation
Power stations
Grid support (weak feeder lines)
Small grid support (islands)

PV
GENERATORE

1 50 kW
> 1 MW
0,5 2 MW
100 500 kW

DC/AC
INVERTER

LOADS

GRID

GRID CONNECTED PLANT

GRID

PV MODULES

INVERTER
DOUBLE
COUNTER

COMMERCIAL AC LOADS

DISTRIBUTED GENERATION
Small size plants (1 50 kW) connected to the LV grid (without battery)
Suited to be installed on buildings or other infrastructures (absence of
noise, moving parts, emissions)
Huge potential: south oriented roofs covered with PV could supply electricity
needs in many countries.
PV energy cost: still double with respect to the electricity cost paid by users

DISTRIBUTED GENERATION
ADVANTAGES
Distributed exploitation of a diffused source
Production at the place of utilization (transmission
losses avoided)
Easy grid connection (battery)
User contribution in technology diffusion
Promotion of energy saving and more efficient
appliance
Exploitation of not utilized surfaces
Positive architectural valence in the urban contest
Possibility to combine energy production with building
envelop functions (saving of traditional building
components)

DISTRIBUTED GENERATION IN ITALY

First installations realised and monitored by ENEA and
ENEL (preliminary actions of the Italian Roof-top
Programme)
Aims
to check how proper the identified technical solution
were
to test new components and new design criteria
set up the monitoring network
Site: Major Italian Universities and Municipalities
In operation since 1999
Long term performance analysis in progress
Typical plant size: 2 - 3 kW
Applications: roof integration, faade, sunshade

DISTRIBUTED GENERATION

SOUND BARRIERS
Marginal spaces utilization
Use of noise barrier as
supporting structure
Use of PV module as noise
barrier element
Zig-zag structures to combine
noise absorption and production
maximization
Bifacial modules in north-south
highway direction

IEA source

POWER STATIONS
Typically from hundreds kW to several MW
Based on flat plate, tracking structures or concentration systems
To be utilized for electricity feeding into the grid
Hydrogen production (in future)
Electricity cost still high 20 40 c/kWh with respect to the one of
conventional electricity (2 6 c/kWh, depending on externalities)

GRID SUPPORT

Large size distribution grids

Medium size systems (0,5 2 MW) to strength weak feeder
Small grids (few MW) of small islands (33 in Italy)
small medium size plants (100 500 kW) to provide a significant contribution (1030%) to energy production
Almost cost effective
Fuel saving
Respect of environmental constraints

DEMONSTRATION PLANTS
IN ITALY
Promoted by ENEA, ENEL, PV Industry, Municipalities
Major projects
PLUG (ENEA)
Serre (ENEL)
Vasto (ANIT)

First prototypes in operation since 1984 (long term

performance analysys still ongoing)
Typical power: 10 kW 3 MW
Application: Power stations (0.6-3.3 MW), Small grid
support (200 kW), Water punping (70 kW), Desalination
(100 kW), Cold store (45 kW)

PLANT
LOCATION
LOCATION
OF SOME
DEMO PLANTS
Zambelli, 70 kW
Water pumping
Casaccia, 100 kW
Car parking
Leonori, 86 kW
Car parkig
Giglio, 450 kW
Cold store
Altanurra, 100 kW
Grid-connected
Carloforte, 600 kW
PV-Wind

Vasto, 1000 kW
Power station
Delphos, 600 kW
Power station
Serre, 3300 kW
Power station
Vulcano, 180 kW
Grid support

Mandatoriccio, 216 kW
Grid-connected
Lamezia, 600 kW
PV-Wind

PLUG PROJECT
Development of a 100 kW standard plant for medium size applications
Aim: cost minimization
Standardization and preassembling of components
Modular architecture of systems
Civil works absence
Applications
Casaccia
(preexisting structures exploitation)
Delphos (modular concept)
Alta Nurra
(combined use of PV and wind)
Vulcano (high penetration of PV in small grid)

SERRE PROJECT
Development of a modular segment to be used in large size plants
operated by Utilities
Objectives
Verify of the projectual criteria adopted
Evaluation of scale effects on costs
Application
Serre plant: 9 fixed units + 1 tracking unit (horizontal north-south axes)

ANIT PROJECT

Development of large grid connected and hybrid systems

Aim
gather experience in design, construction and operation on large
scale PV plants
verify the degree of availability
Applications
Vasto plant
2 segments of 500 kW
Carloforte
2 x 300 kW PV + 3 x 320 kW Wind
Lamezia
2 x 300 kW PV + 3 x 320 kW Wind

ENVIRONMENTAL IMPACT

Negligible pollution during plant operation:

Chemical: total absence of fumes or emissions (COx, SOx NOx)
Thermal: maximum temperatures < 60C
Acoustic and electromagnetic : acceptable (if inverter within norm limits are
adopted)

Complete absence of:

moving parts
waste (components can be recycled)
radiation or scories
circulation of high temperature or pressure fluids

Emission comparison
PV
30 gCO2 /kWh
Gas
400 gCO2 /kWh
Oil
800 gCO2 /kWh

CO2 emission avoided = emission avoided for electricity production

emissions related to the construction of the PV plant

ENERGY PAY BACK TIME

PROCESS PHASES
Modules

BOS

ENERGETIC OCCURRENCE
kWh/m2

m-si wafer production

175

Cells formation

400

Module assembly

45

Supporting structures

50

Cabling + inverter

30

Transport + installation + operation +

decommissioning

200

TOTAL OCCURRENCE

900

YEARLY ENERGY PRODUCTION

190

EPBT = Total occurrence/yearly E.P.

4.7 years

FUEL SAVING

Plant life time

30 years
Energy pay back time
5 years
Plant useful life
25 years
Yearly energy production
1 300 kWh/kW
Energy produced in 25 years 32 500 kWh/kW
1 kg of fuel 4 kWhe
Fuel saving 8 000 kg/kW

CO2/kWh
0.77 kg
Emissions avoided 25 000 kg/kW

MODULE EFFICIENCY DEGRADATION

Experience conducted by ENEA on 80
modules installed in 1980
Results:
Declared efficiency
Measured efficiency
- at acceptance tests:
- after 11 years:
- after 25 years:
Efficiency degradation:
Mean degradation rate:

10,6%
9,54%, (-10%)
9,14%.
8,6%.
10% in 25 years
0,4% /year

MODULE FAILURES

Tedlar detachment or delamination

module browning

Defects detected
after 25 years dont
have caused further
efficiency
degradation with
respect to the natural
degradation
(0,4%/year)

Tedlar leak

This experience
demonstrate that the
life time of old
generation, glasstedlar can be
considered around
30 years.
Grid oxidation

ARRAY DEGRADATION

Array degradation factors

Natural degradation
power degradation
life-limiting wear-out
BOS component failures
Accidental degradation
due to single-module failure (which does not involve failures of
entire strings)

data on efficiency and module failures have been collected for many
years from 2 arrays (at ENEA research centre)
the influence of module failure on efficiency degradation was found to
be very low if module failure occurs at rate <0.1 %/year
In this case module replacing could be not urgent
especially in BIPV or remote systems
unless the module failure (such as low-insulation loss) cause
chained failure of entire strings

PLANT EFFICIENCY DEGRADATION

Inverter failure

string failure

Inverter failure

Efficiency degrad
ation

TIPICAL SEQUECE OF EVENTS

Inverter substitution

failure
(PVgen or inverter)

n,

System tuning

tio
ure da
ail , ossi
le f
du tion )
Mo filtra tion
(in mina
a
d el

Module efficiency de
gradation (0,4%/a)

IMPACT ON LAND

Land occupation
Plant power
Yearly energy production
Domestic users supplied
Land required

1 MW
1.300 MWh
600 (in Italy)
1.5 hectares

Energy consumption in Italy

Possibility of using marginal lands or not utilzed areas (20.000

km2 in Italy)

Integration into existing structures

300 millions of MWh

(land required: 3.000 km2)

PV POTENTIAL

Total amount of solar energy on earth surface: 15 thousand times

the world energy consumption

Technical potential: 4 times the world energy consumption

Unrealistic due the mismatch generation/demand
Unless PV energy utilized for H2 production (in future)

South oriented roofs in Europe: electricity needs in Europe

PV AND ARCHITECTURE

Typologies integrated into architectural structures

Roofs (sloped, horizontal, curved)
Facades
Sun shadings (fixed and mobile)
Glass roofs and curtains
Covering elements
Balustrade

Typologies integrate into urban infrastructures

shelters (car, bus stop, train station)
Industrial buildings
Noise barriers

BIFACIAL MODULES
- applications with
architectural constraints
- solar radiation
exploitation on both
sides of module
- larger energy
production (>10-20%)
with respect to standard
modules
- ease maintenance
against snow, dust and
bird dropping

TRACKING SYSTEMS
ONE AXIS TRACKING FLAT PLATE

ONE AXIS TRACKING

Incident
energy > 20%25% with
respect to fixed
plated
Fixed flat plate
(tilt = latitude)

north-south
axis tracking
flat plate

Tilt=latit
ude

TWO AXIS TRACKING

TWO AXIS TRACKING

Sistema piano
Incident
energy
ad
> inseguimento
30%- 35%
with
respect
su due
assito
fixed plated
Fixed
plate
Tiltflat
= latitudine
(tilt = latitude)

2 axis
tracking
flat plate

STRUCTURES COMPARISON
FIXED
No maintenance
Simple mounting and
transport
content cost
Modest foundations
Less energy collected
modest aesthetical
result

TRACKING
Maintenance necessity
Exacting transport and
installation
Higher costs
Larger areas required
More energy collected
Harmonious
aesthetical result

CONCENTRATING PV

PV material (high cost), is partially substituted with mirrors or

lenses (lower cost)
Solar radiation

Solar radiation

Lens
PV cell
PV cell

The efficiency of cells is higher (30% - 40%)

high concentration factors: 100X 1.000X (Irr*logIrr)
smaller cells

CONCENTRATING PV
The incident energy is
almost the same with
respect to fixed plates
systems:
only the direct
component of light is
exploited
Concentrating
system

Fixed flat plate

(tilt = latitude)

CONCENTRATOR MODULES
- Concentration factor: 100X
400X
- Lens efficiency: 80% - 85%
- cell cooling difficulty
- Inexpensive polymer lens
- lifetime not verified

CONCENTRATORS
Central tower

Dishes

Trough system

- Concentration factor: 1.000X

- Mirror efficiency: 85% - 92%
- currently high costs
- Cooling challenge

PHOCUS PROJECT
(PV Concentrators for Utility Scale)
Aim: assessment of technical and economical feasibility of PV concentration
for centralised generation
Ongoing activities
Optimisation of the most appropriate technologies for solar cells, optical
devices, concentrator modules, tracking system
Development of a 5 kW standard unit
c-Si cells optimised at 100-400 suns
refractive prismatic lenses
Experimentation on 5 units
Planned activities
Development of high efficiency cells
Investigation on optical devices based on Fresnel lenses and Compound
Parabolic Concentrators

CONCENTRATOR MODULE
Optical system
(prismatic
lenses)
Structure with
separators

PV cells
Heat sink

IEA-TASK 2 PERFORMANCE DATABASE

Contains information on the technical performance, reliability and
costs of 431 monitored PV plants located worldwide. Germany
(118), Japan (95), Switzerland (64), Italy (35), France (31),
Applications: Stand alone, hybrids, grid connected
Plant size: from 1 to 3300 kW
Mounting typologies: facades, flat and sloped roofs, integrated
roofs, sound barriers, free-standing
Performance data collected from 1986 (Japan)

IEA-TASK 2 PERFORMANCE DATABASE

For each plant provide

General information
Component data and system configuration
Data collected (Irr, Pdc, Pac,..)
Costs
Calculated data (index of performance)

The user can

select PV system, present monitoring data, calculated results
export these data into spreadsheet programs
check the operational behavior of existing PV plants
get a report on performance results

Can be downloaded from www.iea-pvps-task2.org

IEA source

EFFICIENCIES AND COSTS

Costs
84

85

91

91

93

94

96

INDICES OF PERFORMANCE

GLOBAL ECONOMIC SURVEY

aimed to collect worldwide:

Costs of systems, components, maintenance (during their
life cycle)
Production data and maintenance information

will allow to:

compare costs of system for different markets in different
countries as well as different sizes of installations
know the true LCA
predict performance life expectancy, mean time between
failure and costs to service and replace parts

accessible on http://iea.tnc.ch

IEA source

INSTALLED POWER
- IEA countries: 2.8 GW
- Total: 3.3 GW

Worldwide
IEA
countries

- 1.2 MW in 2004
- Growth rate: 42%
- Projections for 2005:
4,5 GW
- applications: 70% of
small grid connected
systems
IEA source

CUMULATIVE POWER IN THE COUNTRIES

(end 2004)

94% in JPN, USA and

DEU

IEA source

Impact of market
support in terms of
installed capacity per
capita:
- DEU: 10 W/c
- JPN: 9 W/c
- CHE: 3 W/c
- NLD: 3 W/c
- ITA: 0,5 W/c

TRENDS IN SOME COUNTRIES

Annual rate growth:
- DEU: 137%
Sustained by feed-in
tariffs (0.5 /kWh)
- constant in JPN: 22%,
net metering at 0.2
/kWh + low subsidy
on capital costs (10%)

IEA source

DISTRIBUTION OF APPLICATIONAS
- PV roofs : CHE, DEU,
GBR, JPN, NLD
- Vacation cottages: SWE
NOR, FIN
-Rural electrification:
MEX, FRA
- Commercial applications:
USA e AUS
IEA source

PV SYSTEM MARKET IN ITALY

Primary applications
Off Grid domestic: 5,3 MW
rural electrification (5000 isolated households promoted
through 80% incentives in the early 80)

lighting
Economic industrial applications: 7 MW
telecommunication
signaling
cathodic protection
Demonstration (sharply increasing in the 90): 6,7 MW
Distributed generation, growing over the last year (rooftop
Programme): 17 MW
TOTAL: 36 MW

CUMULATIVE POWER IN ITALY

Rooftop
Programme
Demonstartion
Projects (UE)
Law 308: rural
electrification

INDUSTRIAL PRODUCTION

IEA source

INDUSTRIAL PRODUCTION

World module production in 2004 : 1200 MW (700 in 2003). Only

IEA countries: 1070 MW

Average growth : 60%

JPN: 70 % (50% of the world production)
DEU: 66% (second producer)
CHI: 400% (100 MW in 2004)
ESP: second producer in Europe
FRA and ITA: continue to lose market shares

Production capacity growth: 17%

DEU: awaited expansion not fulfilled yet
USA: capacity reduction (abroad production)

MODULE PRODUCTION BY REGIONS

(year 2004)

IEA source

THE PV INDUSTRY STRUCTURE

Producers:
ingots and wafers
USA (4 companies + Elken based in NOR): 5100 t
DEU (Wacker): 2800 t
JPN (Tokuyama) : 1000 t
cells and modules
C-Si: 850 MW
a-Si: 40 MW
Others: 280 MW
BOS components (inverter)
EU: 30 companies (SMA)
USA and JPN: 20 companies (Xantrex, Sharp)

THE PV INDUSTRY STRUCTURE

Vertically integrated companies (from ingots to cells)
Kyocera (JPN), BP Solar, Shell Solar, Photowatt
Company attempting to commercialize new processes
Silicon ribbon: RWE Schott
String ribbon: Evergreen Solar
Micro spherical silicon tech.: Canadian Spheral Solar Power
Silver cells: Australia Origin Energy

MODULE MANUFACTURERS

ITALIAN PV INDUSTRY
2 major module manufacturer
Enitecnologie (ENI, Italys oil and gas giant)
Mono and multi-crystalline silicon cell and module production
Production capacity: 9 MW/year (4.2 MW last year)
Helios Technology
Fabrication of cells and modules from mono-crystalline silicon
wafers
Production capacity: 10 MW/year (7 MW last year)

Some small companies assembling and encapsulating tailor-made

modules (facades, windows, coloured cells). Capacity: 10 MW/y
5 companies manufacturing small and medium size inverters, for
on-grid and off-grid applications
100 specialist PV companies offering consultancy, design,
installation services and component delivery (some of them
constituting GIFI, the Italian PV Firm Group)

p-Si

TECHNOLOGY PRODUCTION

- Limited availability of C-Si feedstock (electronic industry):

- necessity of a specific production: solar grade silicon
- increase of a-Si market share (has remained at a modest level from 5% to 15%)
- Material reduction (Si utilization is still relatively low) and efficiency increase
- Concentration (use small area, high efficiency cells)

PV INDUSTRY

Actions to be taken:
Development of a sustainable market driven by incentives
(implementation of deployment measures)
Rules clear and appropriate (overcome barriers related to
regulations, standards, safety)
budget adequate for R&D and activities coordination
Strengthen joint initiatives between research and industry
Adopt instruments to encourage investment
Promote BIPV through the development of PV components to be
used in buildings
Ensure the Si availability matter at acceptable costs
Optimize the recycling process
Cooperation with other high tech sectors (flat panel display, micro
electronics, nanotechnologies

MARKET EXPECTATION
STUDY COMPARISON

Growth
rate)

+60%
+40%

MODULE PRICES EVOLUTION

- Modules prices 3.5 /W
- Module prices increased:
- tightening of Si supply
- more order in the books of
manufacturers than they could
fill in
- Cost reduction (to 1.5-2 / in 2010)
can be achieved by
- market growth (scale effect)
- research efforts (new materials,
manufacturing process
optimization)

LEARNING CURVE OF MODULES

2000
c-Si
2010
thin film
Growth rate in the past: 20%

2020

- Historic learning curve shows a

18% cost decrease for every
doubling of the cumulative
installed power
- The cumulated power has
doubled 4 times in the last 10
years (prices reduction: 70%)
- The learning curve for C-Si and
is expected to continue for the
next 10 years till C-Si will reach
its saturation value: 1/W
- thin films have the potential to
extend learning curve beyond CSi limit (less material and energy
in the process, simpler and highly
efficient process

PRICES OF MODULES AND SYSTEMS

IN SOME COUNTRIES
- Module prices: 3-4,5 /W
- GCS: 5-7 /W
- slight increase in prices
over the previous year
systems
modules
IEA Source

- learning curve of systems:

shows a 15%-20% cost
decrease (BOS cost
decrease is along with
module cost reduction)

SYSTEM PRICES

IEA Source

System prices depend on

- application (S.A or G.C.), size, location and mounting typology
- dedicated design, technical specification

PRICES IN ITALY
Modules
Year

2002

2003

2004

2005

/W

3.5 4.3

3.1 3.9

2.9 3.7

3.2 - 4

Systems
Category
Off-grid (< 1 kWp)

Application
Lamps,
Rural electrification,
Industrial applications

On grid (< 10 kWp)

Rooftops

On-grid (>10 kWp)

Distributed generation

/Wp
10 - 13
68
5.5 - 7

COST DISTRIBUTION
small G.C. plants

65% in large size

plants

COSTS IN S.A. SYSTEMS

COSTS PROPORTIONAL TO THE SIZE OF THE PLANT

PV modules
3,6 /W
Cables and accessories 0,4 /W
Supporting structures
35 /m2
Site preparation 10 /m2
dc/dc converter (charge controller)0,3 0,6 /W

COSTS PROPORTIONAL TO THE SIZE OF THE BATTERY

Battery housing 80 /kWh
battery 200 /kWh * N of replacements

COSTS PROPORTIONAL TO THE SIZE OF THE MAXIMUM LOAD

inverter 400 - 700 /kW

THE PV ENERGY COST

CkWh = (Ci*A + Cm) / E
Ci: investment cost
6 - 7 /W (grid-connected)
10 12 /kW (stand alone)
A: capital recovery factor = r / (1- (1+r) -T)
r: interest rate (3 %)
T: system life span (30 years)
Cm: annual maintenance cost (50 200 /kW)
E: yearly energy production (1000 1300 kWh/kW)

CkWh:
0,3 0,35 /kWh
(grid-connected)
0,5 0,7 /kWh) (stand alone)

COST OF THE kWh

me
o
R

2010

o
m
r
e
Pal

For typical system prices (6 /W)

corresponds 0,3 to 0,34 /kWh,
depending on location (Solar
radiation)
Analysis show that system prices
may reduce to 3.5 /W (0,17-0,2
/kWh), comparable with the
price of energy paid by the end
user

COST OF THE kWh

Small G.C. systems (<5 kWp)

Plant cost: 6 /W
maintenance : 1%
interest rate: 4%
optimal exposition
kWh cost:
30 c in Sicily
40 c in North Italy
55 c in Germany

PV VS DIESEL AND GRID EXTENTION

t2
ex

0,
2

PV

PV/DIESEL

Daily load

GRID

m
0k

km

$/L

t5
ex

0.5

$/L

km

0,
4

0.7
5

t1
ex

Di
es
el

el

id
Gr

Di
es

id
Gr

0,
6

id
Gr

Energy cost ($/kWh)

For SAS the comparison is done with diesel generator or grid extension.
In the case of small daily loads PV is not only cleaner and more reliable,
but also a cheaper option

GENERATION COSTS
900 h/a
G ri
sys d conn
tem
ect
ed
s
ro o
ftop
1800 h/a
(inc
Price payd by end user

luding taxes)

Bulk cost

In sunny countries, GCS will reach competitiveness with retail electricity in few years.
PV generation cost will began to compete with bulk production only within 20 years

PAY-BACK TIME
Net value actualized (/kW)

Time necessary to have NVA = 0

Net value (actualized): NVA = CFA (Ci Contribution on c.c.)

Payback time

years

Cashflow (actualized): CFA = Pi * (1+r)-i

Proceed:
Pi = Ep*CkWh Cm
(1+r)-i : actualization factor
r: interest rate

MIXED INCENTIVES
c.c
.

Rooftop
programme

c.c
.=

=2

c.c
.=

0%

0%

Feed-in
tariff
7 5%

c.c.=

60 %

plant size (kW)

cost of plant (/kW) without 10%VAT
feed-in tariff + net metering or sale(c/kWh)
maintenance cost (/kW/y)
interest rate (%)

Net value actualized (/kW)

energy produced (kWh/y/kW)

PAY BACK TIME (year)

30

300

6.500

6.000

5.500

44,5+15

46,0+8

49,0+8

35

20

10

1.100
12

1.100
13

1.100
11

ADDED VALUE

Electric
Grid parameters improvement (peak, transmission losses)
Emergency
Environmental
Emission reduction, acid rain prevention
Architectural
Building functions (heat and noise insulation water and fire
protection electromagnetic reflection)
Socio-economic
Induced employment
Resource diversification
Technological transfer

COSTS AND ADDED VALUE

42

kWh cost (c/kWh)

incentives
28

14

-14

PV PROS AND CONS

HIGH COST
At present is not realistic to recourse to this technology for
Energy source diversification
Significant emission reduction
INTRINSIC FEATURES
Among the RES is the most attractive and promising for local and diffuse
electricity production (medium and long term)
HIGH STRATEGIC VALUE
National Governments have launched important Programs increasing
Market
Production capacity
R&D efforts

INCENTIVES
Country

Initiatives

ITALY

Roof top programme almost completed (17 MW). Feed-in tariff

launched in September 2005 (from 50 to 60 c/kWh). 80 MW/year

FRANCE

Public subsidy: 57% of installed cost. Budget: 18,9 M

GERMANY

Feed-in law amended (50 c/kWh + soft loans). Budget in 2004: 250
M. Installed power 1400 MW

SPAIN

Feed-in tariffs ranging from 40 to 70 c/kWh. Total capacity 150 MW

UK

Major Demonstration Programme. Budget 31 MGBP. Grants: 50%

JAPAN

Incentives on capital cost reduced to 5-10%. Budget 40 M. Installed

power 1400 MW. Target 5 GW by 2010

USA

Subsidy and tax credit in California, Arizona, New Jersey, New York
and North Carolina for a total budget of 180 M$

CHINA

National Township Electrification Program: 660 villages (16 MW) + 10

000 (265 MW) by 2010

INDIA

Solar PV Demonstration and Utilisation Program: 325 000 SHS

installed with grant support

NATIONAL PROGRAMS
STRATEGY AND MOTIVATION
Market growth (allowing companies to plan their
investments)
Technology diffusion
PV industries reinforcement
Definition of continuative R&D programs
New job opportunities
FINAL GOAL
Economic competitiveness achievement
Scale factor
Development of most competitive components

NATIONAL PROGRAMS

Over a decade public

spending has
increased from year to
year
Spending initially
focused on R&D
Spent on market
stimulation increased
in 2001
Market stimulation
started to decrease in
2004

Public budget

IEA source

ECONOMIC BENEFITS
Year 2004

-In the last years there has

been a significant growth in
employment (DEU, USA)
- Persons employed in
R&D, industry and
installation reach in 2004
about 30 000 unit.
- most new jobs are on
installation and marketing

IEA Source

- component production
tend to move towards low
cost base economy

ITALIAN PV PROGRAMME
Strategic goals

PV cost decrease
Development of national competitive industries
Local development
New job opportunities

Relevant results

38 MW of total cumulative PV power installed

National roof-top and feed-in Programmes
Big effort in RD&D
Competitive industrial system (production capacity 30 MW/y)
Growth of popular acceptance for PV

R&D ORGANIZATIONS IN ITALY

Organisation

R&D area

ENEA (Casaccia, Portici)

c-Si, a-Si, a-Si/c-Si

heterostructures

Institute for Certification

(CESI)

GaAs (space/terrestrial
applications)

University of Milan

c-Si

University of Ferrara

c-Si

University of Parma

Compound films

National Council for Scientific

Research (Bari)

a-Si

National Council for Scientific

Research (Bologna)

c-Si, a-Si/c-Si heterostructures

ENEA R&D ACTIVITIES

Systems and components
Small grid connected plants

Characterisation of BIPV modules and ageing tests

Development of innovative inverters
Inverter characterisation and pre-qualification
Grid interface device tests

Hybrid systems
Medium size plants
Experimentation and long term performance analysis

ITALIAN ROOF-TOP PROGRAMME

Started on March 2001

Small grid connected BIPV plants

Economic incentives: only on investment cost (up to 75%)

Maximum investment cost allowed: 7 8 /W

Public funds: 115 M

Total investments: 175 M (23 MW expected)

Starting phase (tune procedures and check people consensus)

National Programme

21 Regional Programmes

DECREE 387/03

Put into effect the EU Directive 77/2001/CE in the Italian

legislation and forecasts:
an annual increase of 0,35% in green sources share
obligation, from current 2%;
procedure simplification for plant installation and grid
connection;
advertising campaigns;
facilitations for small renewable source plants up to 20 kW

Forecasts dedicated support measures for PV that include:

fixed feed-in tariffs, decreasing over time, for different
installations and a purchase obligation by the utilities.

FEED-IN TARIFFS IN ITALY

Decree 28/7/05 and 6/2/06

Requirements of plants who can benefit of feed-in tariffs: 1 kW - 1 MW

Plant size (kW)

Tariffs (/kWh)

Further value

1 <> 20

0,445

Net metering (15 c/kWh)

20 <> 50

0,46

Self consumption or sale

(9,5 c/kWh)

0,49 max.

Self consumption or sale

(9,5 7 c/kWh)

50 <> 1000

FEED-IN TARIFF IN ITALY

Duration of the support : 20 years
Maximum Power to be supported: 500 MW
360 MW (< 50 kWp) + 140 MWp (> 50 kWp)
Annual limit: 80 MW
Final target at 2015: 1 GW
Tariff reduction:5%/year
Tariff increased of 10% for BIPV
Resources for the allocation of feed-in tariffs are covered by
the revenue of the A3 component of the electric tariff (3
/Year/user)

APPLICATIONS SUBMITTED IN 2005

Admitted applications within September: 2.914 (79% of
submitted)
2.868 P<50 kW (60,6 MW)
46
P>50 kW (27 MW)
Admitted applications within December: 6.207 (75% of
submitted)
6.137 P<50 kW (134,7 MW)
70
P>50 kW (43,7 MW)
Cumulated power in 2005: 266 MW
Most active regions: Apulia, Sicily, Campania.

SUPPORT INCENTIVES COMPARISON

CAPITAL COSTS

FEED-IN TARIFFS

End user

Citizen, public
organization (limited
capital)

Investors, builders,
commercial subjects
(cash flow availability)

Management

Public Bodies (Regions,

Ministry)

Electric Utilities

Economic
consideration

To overcome economic
barrier in s.a or g.c.
applications

To internalize
externalities of
traditional sources

Problems

Dont encourage
investment for PV

Impact on the market

depends on tariff value

CONCLUSIONS
Although impressive progress have already been made, the early stage of
PV development indicates a large margin of growth.
In the next 10-20 years is expected:
Efficiency 10-25% (35%: concentrators), lifetime 40 years
Electricity cost from PV: 5-15 c/kWh
Components based on abundant non toxic materials
Implementation of new concepts (III generation)
BIPV in all new building (net producer)
Multi MW in deserts (hydrogen production)
Cumulated power: 200-400 GW
Jobs created: 300 000
Electricity to 100 million families

CONCLUSIONS
In order to achieve the expected aims is necessary:
Define the strategies and the goals
Develop policy initiatives
Balance the efforts in R&D with the PV potential
Accelerate the transfer from research to production
Overcome the barriers (technical, standardization, financing,
market)
Strength the cooperation among sectors (electronics, buildings,
nanotechnologies)
Develop sustainable support measures (decreasing)
Foster the connection among R&D, Industry and Policy