The Evolving Value of Photovoltaic Module Efficiency

Abstract

PV research is making efforts to create new cell and module efficiency records, while the manufacturing industry and the downstream project developers want to choose the optimal efficiency point where the best economics can be achieved at the system level. In this paper, we define representative system cost structurers for various applications in 2018 and quantify the value of greater module efficiency in lowering the levelized cost of electricity (LCOE). With the transparent methodology, we also extended the analysis into the future until 2025. As the value of module efficiency resides in non-module costs and the non-module costs will account for a higher percentage for a PV system in the future, industry will develop stronger motivation to adopt more efficient modules. Specifically, we examined the economics of bifacial modules and forecast that its market share would grow from 3% in 2018 to 40% in 2025.