Grid parity
Grid parity is most commonly used in the field of solar power, and most specifically when referring to solar photovoltaics (PV). As PV systems do not use fuel and are largely maintenance-free,
In the context of solar energy, grid parity refers to the point at which the cost of generating electricity from solar panels is equal to or lower than the cost of electricity from the grid.
Grid parity has also led to increased competition in the solar industry, driving down prices and encouraging companies to innovate and improve their products. This competition has resulted in more efficient solar panels, improved energy storage solutions, and advancements in solar technology.
In some locations, PV has reached grid parity, the cost at which it is competitive with coal or gas-fired generation. More generally, it is now evident that, given a carbon price of $50/ton, which would raise the price of coal-fired power by 5c/kWh, solar PV will be cost-competitive in most locations.
Over a 25-year lifetime, the system will produce about 29,675 kWh (not accounting for the small effects of system degradation, about 0.25% a year). If this system costs $5,000 to install ($5 per watt), very conservative compared to worldwide prices, the LCOE = 5,000/29,675 ~= 17 cents per kWh.
PDF version includes complete article with source references. Suitable for printing and offline reading.
Download detailed product specifications, case studies, and technical data for our off-grid PV containers and mobile energy storage solutions.
15 Innovation Drive
Johannesburg 2196, South Africa
+27 87 702 3126
Monday - Friday: 7:30 AM - 5:30 PM SAST