Will Solar Burn Out On Its Own Success?

sunset

Author:  Amit Ronen and Josh Harmon

Organization:  GW Solar Institute

Report Date: 2016

Download

Summary: 

In this report, which appeared in PV Tech's May 2016 Power Magazine, Amit Ronen and Josh Harmon of the GW Solar Institute analyze how the value of solar generation tends to decline as it becomes an increasingly greater share of any one region's energy mix.  The article also discusses ways to mitigate solar devaluation including enhancing market signals and integration of affordable storage options.   

Key Take-Aways: 

  • Higher penetration rates of solar PV will result in value deflation; this has already been observed in more mature solar markets.
  • Unless action is taken, the reduction of solar's value to the energy grid may outpace reductions in the technology's cost, making future projects less economic.
  • On the demand side, real-time pricing or time-of-use pricing would help shift demand to solar's generation profile.
  • On the supply side, low-cost storage and larger balancing areas would help maximize solar's value.

New Research

sunset

Will Solar Burn Out On Its Own Success?

Author:  Amit Ronen and Josh Harmon

Organization:  GW Solar Institute

Report Date: 2016

reforming power

Reforming the Power Sector: How Electricity Sector Reforms Will Impact China’s National Emissions Trading Scheme

Author:  Josh Harmon | Xieyao Chen | Michelle Ker | Matthew Nitkoski

Connect with Us