Renewables

Innovation in PV Module Generating Capacity Will Drive Industry Growth

A key factor that may be under-appreciated in accounting for the astonishing growth of the solar industry since 2011 is expansion of electricity-generating capacity.

By Jing Tian, Head of Global Marketing, Trina Solar and Gautam Ghose, Product Marketing Manager, Trina Solar

A key factor that may be under-appreciated in accounting for the astonishing growth of the solar industry since 2011 is expansion of electricity-generating capacity. When photovoltaic (PV) solar modules first experienced wide adoption, most systems used 600 volt (V) components. By 2012, 1,000V photovoltaic systems were rapidly adopted by commercial enterprises. With the higher voltage came higher electrical yields and greater returns on investment. This led to growth in the amount of clean electricity generated by solar.

The transition to 1,500V systems has solar poised to undergo another technological and economic advancement. These higher voltage systems are expected to decrease net costs for project installers and developers while boosting efficiency levels.

The initial demand for 1,500V systems exists mostly in the U.S., Latin America and the Middle East, with the U.S. projected to account for over 60 percent of all 1,500V installations by 2017. However, the global market is expected to scale up rapidly, according to GTM Research.

This mirrors a similar shift that occurred from 2012-2013. During that period, the value proposition of 1,000V systems was clearly demonstrated, 600V systems were phased out and higher-voltage systems became utilities’ default choice.

Similarly, as the technology for 1,500V PV systems is proven, markets are expected to move quickly to adapt. Based on current trends, by 2018, the majority of projects over 1 MW will be installed with 1,500V architectures. Underwriters Laboratory (UL) only introduced 1,500V module standards in May 2015. Now, the U.S. 1,500V PV ecosystem is fully populated with components commercially available by several leading global manufacturers.

The transition means that utility-scale developers and EPCs can already benefit from the multiple advantages of these higher voltage modules, including greater system-wide savings, increased performance and better financial returns. Specifically, the reduced hardware needs resulting from 1,500V system deployment translates into longer-term savings compared to 1,000V alternatives. Higher DC voltage also enables more efficient inverters, increasing system output for the same footprint. This can be particularly important for projects with land constraints.

There are some challenges to 1,500V PV systems becoming an industry standard; chief among them is current costs. Because this technology is relatively new, there are higher initial component costs and smaller scale customers may have difficulty obtaining financing due to added risk. Utility-scale procurement buyers tend to be cautious about new products, and there also are some unresolved safety concerns arising from higher DC voltages.

These concerns are offset by manufacturer component/power warranties and the potential financial benefits of higher-voltage systems.

In fact, the development of higher-voltage PV systems is driven by the goal of lowering net costs. This occurs through increased efficiency and performance. Because of lower operational expenditures, 1,500V systems can have lower overall costs compared to 1,000V systems, which are now 1 to 2 percent of capital expenditure but expected to increase to 4 to 5 percent as the market grows.

GTM Research conducted a study of the costs, vendors and forecasts of 1,500V PV systems and components from 2016-2020. It examined shipments disclosed by leading developers, EPCs and vendors, and predicts the new technology will continue spurring growth of the solar market into the near future.

“1,500-volt systems will account for 92.7 percent of all projects over 1 MW, or 96.4 GWdc of installations, by 2020,” the report said.

As the technology continues to improve and scales, the perceived project risks will be reduced, enabling an easier expansion into energy markets globally.

To prepare for this growth, many leading solar manufactures are developing innovative technologies to meet rigorous safety and reliability standards such as those of the IEC.

By further demonstrating the efficacy of 1,500V PV solar technology to EPCs and developers as well as project financiers, PV module vendors will likely spur greater demand for these higher voltage solutions in the next few years. Although challenges remain, the performance of 1500V technology will demonstrate its value over time, helping ensure the continued growth of affordable solar energy worldwide.

 

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