From a performance standpoint, there is no significant reason why PV should not, or could not be more widely used. The tens of thousands of solar home systems already in service in countries like Indonesia and the Dominican Republic, and the numerous PV refrigerators and water pumping systems installed throughout Africa have proven the technology to be both reliable and suitable for such purposes. The main technical problems to be overcome are the need for appropriate training of installers and system support staff, and the development of suitable infrastructure mechanisms to support PV systems sales, such as credit facilities and access to replacement components and spare parts. IEA PVPS Task 3 and IEA PVPS Task 9 address issues related to the deployment of stand-alone systems in developing countries.
For the grid-connected market, unit energy cost in comparison to conventional generating technologies is still an important barrier that needs to be overcome. Various grid-interconnection issues also need to be resolved before PV gains complete market acceptance, but these problems are being addressed by the PV industry itself. IEA PVPS Task 5 focuses on grid-connection aspects, whereas IEA PVPS Task 7 concerns building integration of photovoltaics. Finally, within IEA PVPS Task 8 the feasibility and possibilities of very large scale photovoltaic power generation systems are being investigated.
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Reducing system costs
To achieve convergence with unit energy costs of conventional power sources, PV system cost reduction are being targeted on four fronts:
- Increased scale of individual production plants to take advantage of the economies of scale
- Increased product efficiency, for instance, increasing the area of the available conversion material in relation to the module area, and developing other materials, structures and configurations, which are better at converting the available light to electricity. Also, developing more energy-efficient balance of systems components and end-use appliances.
- Improved production methods for existing technologies, for instance, reducing material wastage.
- Research and development of technologies suitable for mass-production: commercialization of thin-film technologies, which take less time and energy to manufacture.
Obviously mass production of PV modules, can only be justified if there is a significant demand for the end product. To that end, several major players within the PV industry are now beginning to "force" demand for large-scale production by initiating large-scale PV power project development collaborations - typically with progressive utilities - which will provide the demand to sustain large-scale production capacities. IEA PVPS Task 8 investigates the feasibility and possibilities of very large scale photovoltaic power generation systems.
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Technical standards
In order to safeguard and installers, to avoid disruption to the electricity grid in the case of grid-connected systems, and to ensure that every PV system performs to its best capability, internationally recognized standards for correctly installing PV systems are an important requirement. Several countries have now established local and/or national guidelines for PV installation, but on the whole there is, as yet, no widespread consensus on best installation practices for PV. Nevertheless, relevant bodies such as the International Electrotechnical Committee (IEC), and the IEA PVPS Task 5, are working towards international guidelines, which should pave the way towards appropriate standards.
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Quality assurance
There is, likewise, an urgent need for quality standards for systems components, particularly to overcome the failure of low quality balance of systems devices. Non-expert purchasers may not appreciate the implications of selecting apparently equivalent, but poorer quality systems components. Like a chain, the entire PV system is only as strong as its weakest link, so it is essential that all components - not only the modules - are of a suitable specification both in terms of quality and appropriateness for the application. Norms and reference standards to address this specific problem are presently still missing.
An initiative is the PV Global Accreditation Programme (GAP), which has been launched by the PV industries of Europe, Japan and the United States, together with the World Bank and the UNDP. This is dedicated to establish and maintain standardized levels of quality for PV modules, BOS, installation and after-sales service. The initial focus is on small (less than 1 kWp) stand-alone systems for off-grid electrification, especially in developing countries. This issue is also being addressed by IEA PVPS Task 3.
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Education and awareness
Although PV technology is technically mature and well proven for a wide range of applications, in view of the enormous potential market for the technology, market penetration to date has been surprisingly small. One of the major reasons, has been a general lack of awareness - both amongst potential users and, perhaps more importantly, amongst key decision-makers in government, finance and the power supply industry - of what PV can offer.
Information dissemination is the key to overcoming this barrier. Appropriately focused publications - brochures, newsletter and reports on exemplary systems - can be used to illustrate successful projects, which could be widely replicated elsewhere, and to highlight potential problem areas to avoid duplication of mistakes. Workshops, seminars and similar events are also an important tool for raising awareness to share experiences and generate new ideas. This issue is being addressed by IEA PVPS Task 1, whereas IEA PVPS Task 9 focuses on deployment in developing countries.
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Financing
For many potential users, particularly the rural poor in developing countries, the biggest single factor preventing widespread adoption of PV technology is the initial cost of purchasing the system. A solar home system to power a few lights and possibly a TV may cost the equivalent of a whole year's income for a rural household. Very few would-be purchasers have sufficient savings to buy such a system with single cash payment, so there needs to be some financial mechanism in place to make the system favorable.
Occasionally systems dealers or banks will provide loans to enable PV to be purchased on credit, but the cost to the lender associated with processing numerous small loans is relatively high, so there is generally reluctance to follow this course. Various other mechanisms are now being introduced to try to overcome this problem:
- Revolving funds, usually taking advantage of low cost capital, are one such device: loan repayments from one borrower replenish the initial fund, which can be re-lent to another client.
- Leasing is another option: the customer makes a regular payment for the use of the system. The customer may gain ownership of the system after a period of several years when the cost of the system has been repaid.
- Energy Service Companies (ESCOs) could operate much like a traditional power supplier: rather than buying a system, the customer pays for the energy service. The generating equipment is located at the customer's household, but electricity is purchased from the ESCO.
The aim is to make payments for PV power approximately equal to that which consumers would normally pay for kerosene fuel. The World Bank regards PV as a serious electricity supply option and is actively investigating ways of financing programs to hasten the spread of PV throughout the developing world. It therefore has launched the Solar Initiative to facilitate the use of Global Environment Facility (GEF) and other suitable financial resources to assist the preparation and finance of commercial and near-commercial renewable energy applications. IEA PVPS Task 9 focuses on co-operation with developing countries.
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