Environmental Engineering Reference
In-Depth Information
What is crucial for cutting costs is an increase in production. If production quantities
rise, then costs will drop noticeably due to the effects of streamlined production and
also because of technical advances. During the past 30 years cost savings of around
20% have been achieved due to a doubling in the total quantities of photovoltaic
modules produced. There is nothing to indicate that this development will not con-
tinue. It is possible that the prices of photovoltaic modules could fall below US$1
per watt by 2020. As a result, the current cost to generate electricity using photo-
voltaic systems would have shrunk to about one fourth.
This would then make photovoltaic systems very interesting to end users in Central
Europe, even without the need for any government subsidy schemes. A photovoltaic
system would be able to produce electricity more cost-effectively for household use
than an energy supply company could deliver to the household. In the sunniest parts
of the world photovoltaics could produce energy more cost-effectively than any
conventional alternatives. For that reason, the main markets for solar energy in the
long term will be in places other than Western Europe.
