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Technology Status - NET Nowak Energie & Technologie AG

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68<br />

Economy of scale can be relevant for some component sizes. For instance,<br />

inverters cost substantially less on a per kW basis in large sizes than in<br />

small ones. The same is true for modules and batteries although the<br />

difference in cost between large and small components is not as great as with<br />

inverters.<br />

PV technology needs market stimulation to improve products and increase<br />

volume. Opening up markets stimulates private-sector R&D and initiates the<br />

learning process. R&D progress and associated cost reductions will be crucial<br />

to the future of PV.<br />

● Market Opportunities<br />

Market Potential<br />

Theoretically, the potential for photovoltaic applications is tremendous as<br />

sunlight is ubiquitous and areas available for development and applications<br />

abound. Building stock in industrialised countries offers enough suitable<br />

surfaces for PV to generate between 15% and 50% of current electricity<br />

consumption.<br />

Electricity output and costs of PV applications depend primarily on the<br />

amount of sunshine in a given area. Roughly speaking, the ratio of solar<br />

irradiation to electrical output is directly proportional, although other factors<br />

like operating temperature, dirt, reflexivity and share of diffuse light<br />

influence this relationship.<br />

<strong>Technology</strong> Factors<br />

On the basis of traditional cost-evaluation PV is not competitive, by a factor<br />

of 10 or more, with conventional base load power from the grid. However,<br />

solar electricity is being successfully deployed on the grid. This is both in<br />

areas of expensive conventional peak power and high solar irradiation<br />

(e.g., California) through subsidy support. As a result, the market for<br />

grid-connected PV (e.g., Germany and Japan) rooftop systems is the<br />

fastest-growing of all PV applications.<br />

Building-integrated/decentralised, grid-connected photovoltaic systems<br />

are becoming more common, especially in Europe, Japan and the US. In<br />

these regions, the biggest potential application is rooftop systems on<br />

houses and commercial buildings connected to the local electricity network.<br />

PV for use in building-integrated systems is already manufactured as a<br />

construction material, making the building’s outer surface multifunctional.<br />

SOLAR PHOTOVOLTAIC POWER X3

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