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grid parity

Developer Claims UK Solar Has Hit Grid Parity

by Joshua S Hill September 22, 2015

UK developer PS Renewables has claimed the UK solar industry has reached grid parity for large-scale solar farms.

Grid parity is the point where an alternative energy source — in this case large-scale solar — can generate power at a levelised cost of electricity (LCOE) less than or equal to purchasing conventional electricity from the grid. PS Renewables believes that it can now build large-scale solar farms without the need for any subsidy, which for the company means that “the UK has hit grid parity.”

Specifically, PS Renewables is building the Eveley Solar Farm in Houghton, Hampshire, in the UK, which is one of the current and future projects under PS Renewables’ wings that will provide energy under new Power Purchase Agreements (PPA) PS Renewables is negotiating. Approved by Test Valley Borough Council on 27th July 2015, the Eveley Solar Farm is set to begin construction soon, and will take around 5 months to build, at which point it is expected to be able to generate the equivalent electricity necessary to power 12,000 average homes.

“What’s exciting is that we no longer have intense deadlines,” said Matt Hazell, the Commercial Sales Director. “A number of our approved and large development projects, including Eveley Solar Farm, can now be built at any time in the future, allowing us to accommodate requests or factors which sometimes delay projects, such as planting seasons, winter working hours, or last minute community requirements, needing to be implemented before construction starts”

“This is not just important for us, it’s likely to be very important for the whole of the UK solar sector, as we’re now not reliant on hitting very tight timelines and critical milestones in order to be eligible for FIT or ROC’s,” Hazell continued. “Due to our steady reductions in panel prices, lower cost inverters, mounts, cable and project rights, we can look to build utility scale solar under a straight PPA arrangement. Now utility solar projects can push forward if they have the planning approved, grid allocated, enough scale and an EPC with the build experience like PS Renewables have.”

September 22, 2015 0 comment

Market Research PV Rooftop Solar Solar $Solar Policy Solar Research

Commercial Solar Grid Parity Now Reality In Italy, Germany, & Spain

by Zach March 23, 2014

written by Zach

The days when solar power was more expensive than other power sources are quickly passing us by. News out of Europe is that commercial solar power is now at grid parity in some major European countries.

A new study, the PV Grid Parity Monitor, conducted by consulting firm Eclareon, has found that commercial solar power hit grid parity in Italy, Germany, and Spain in 2013. Based on levelized cost of energy (LCOE) calculations, commercial solar now competes with retail electricity in these European countries.

“In countries such as Italy and Germany, both at grid parity and with proper regulation, PV systems for self-consumption represent a viable, cost-effective, and sustainable power generation alternative,” said David Pérez, partner at Eclareon in charge of the study.

As you can see in the chart above, of the 7 countries studied, 4 are yet to hit commercial solar grid parity. Of them, Mexico certainly looks the best-positioned to hit it next, and France seems to be next in line after that.

You can also see large variation in the solar policies of these countries. For example, Spain is infamous now for its retroactive solar feed-in tariff cuts. It has also made it illegal for people to consume electricity they generate from their own solar panels.

Italy and Germany, on the other hand, have largely cut solar feed-in tariffs as initially scheduled. Overall, their solar policies have been much more stable. They also have policies supporting the adoption of energy storage, which is a good supplement to rooftop solar, especially if costs can be brought down as they were with solar panels.

Of course, Brazil and Mexico are seen as having the most supportive policies for solar PV electricity self-consumption.

Notably, LCOE for commercial solar power has been coming down in all 7 countries a great deal, but, as might be expected, they’ve been coming down slowest in the countries already at grid parity, which have more mature solar PV markets and have less incentive to further cut prices:

For more details, check out the full PV Grid Parity Monitor.

This was the first commercial solar grid parity monitor from Eclareon. I’ll keep you up to date with changes in the coming ones.

March 23, 2014 1 comment

Going Solar Market Research PV Rooftop Solar Solar $Solar Incentives Solar Policy Solar Research

Solar Panels Cost Less Than Electricity

by Zach July 13, 2013

written by Zach

The Institute for Local Self-Reliance (ILSR) is a leading institution documenting and researching the solar rooftop revolution in the US (and elsewhere to some degree). Based on its Rooftop Revolution report, below is a Solar Rooftop Revolution infographic from ILSR. It highlights the time when US rooftop solar power is projected to cost less (without subsidies or other incentives) than grid electricity across, on average. It’s a fun infographic and based on a great report… but the focus on unincentivized solar grid parity misses the much bigger story we’re living in today — that solar panels cost less than electricity today (when you include important and well deserved solar incentives). Check out the commentary below the infographic for more on that.

July 13, 2013 0 comment