Solar energy seems like the perfect solution to all of mankind’s energy issues. The concept of green energy is hardly new, it has been around for decades now. Yet, despite continuous endeavours, solar energy has not really permeated the day-to-day life of the common man.
Source: http://news.energysage.com/understanding-the-cost-of-a-solar-panel-system/
A recent survey showed that the contribution of solar energy in the total energy generated across the globe was just 2%, in 2016. Admittedly, there has been a rapid increase in the global solar generation capacity over the past 10 years, still, it is nowhere close to being easily available for the masses.
This leads us to the question, what exactly is the snag here? We have enough and more sunlight, global climate change already has us on our toes, yet, sporadic efforts aside, there has not been significant constructive advancement towards utilising solar energy to its maximum potential.
The answer to this is that there are two major drawbacks to using solar energy which reduce its extent of application drastically;
- The efficiency of solar panels is moderate at best
- The cost of solar energy is still at a premium
It is evident that the high cost of generating and storing solar energy and the maintenance involved is the primary reason for limited investment in solar energy. Even increasing the efficiency of solar panels ultimately involves heavy expenditure in research, which in turn, drives the fixed costs.
Cost mitigation to make solar energy affordable is the obvious solution here. However, this is easier said than done, given the several practical challenges in reducing the cost of solar energy. These include:
- Requirement of High Material PurityThe silicon used in the photovoltaic cells of solar panels has to be of a requisite metallurgical grade and processed to 99.999% purity to achieve maximum efficiency of the solar panel. This crystalline silicon is then doped (addition of impurities to achieve the required conductivity) to make a semiconductor, which converts sunlight to electricity. The processing of silica to obtain monocrystalline and polycrystalline silicon is a costly affair. There is substantial time, money, and effort involved in setting up the numerous procedures to transform the semiconductor into a fully functional solar panel, which further increases the manufacturing cost.As of 2017, the most commercially viable solar panel has a maximum efficiency of 22.5%, which limits the incorporation of solar energy on a mass scale.
- Collection and StorageOne of the major obstacles that solar energy generation has faced for years is the method of storage. Solar batteries have been the instrument of choice for storing solar energy, however, their installation comes at an added cost. Furthermore, most of the energy+storage systems for the residential sector need an array of batteries to store sufficient energy for backup, which is not always economically feasible.Recent breakthroughs in energy storage, such as Tesla’s Powerwall, are making energy storage more affordable, however, the minimum cost of purchase and installation of an inverter supplying 14kWh of energy still comes to over $5000 per household.
- Extensive Research and Development CostThe research and development of new, more efficient solar cells requires significant investment that may not always yield economically beneficial results. Leading industries in the renewable energy sector are driving their efforts towards making solar arrays efficient, as well as aesthetically appealing.However, for small-scale industries, investing in research and development is not feasible, at an individual level. 2016 saw a decrease of 23% in investment in renewable energy research globally, as compared to 2015. This has led to heavy dependence on the existing technology in the market, which is controlled by a select few.
- Loss of Energy in Solar CellsWe are acquainted with the numbers for loss of electricity in transmission. When it comes to solar cells, however, the loss of energy starts at the root level. Put on your thinking cap. It is going to get a little technical.Energy generation in solar cells is triggered by a particular wavelength of light, having a fixed number of photons. As the incident light is natural and not filtered, more than 70% of the incident energy is lost. That means, just 30% of the incident light is effectively useful for generating solar electricity.This has a significant impact on the total energy loss, thereby prompting bigger arrays and better solutions to satisfy the energy requirement.
- Impractical Solar Sharing PoliciesAlthough several nations across the globe are promoting the incorporation of renewable energy right from residential levels, the solar sharing policies and rebate amounts for the energy generated are far from significant. The lack of noticeable incentive discourages many homeowners and companies alike from investing in solar energy, as the return on investment takes a decade at the very least.
- High Installation and Operative CostLast, but not the least, the cost of installation and maintenance of the solar energy grid is decidedly high. The availability of land, requisite infrastructure, and future upgrades if any are fixed costs to be borne by the investors. The larger the power grid, the greater the cost. Besides, as we have seen previously, the slow ROI can be a major turn-off for large-scale investors.
Having said that, there have been several new developments in the design, manufacturing, and production cost of solar cells, to make solar energy more affordable. Energy experts across the globe unanimously agree that solar energy is the future.
The Dubai Water and Electricity Authority (DEWA) has commissioned a mega concentrated solar power project that is set to produce 5000 Megawatts by 2030, making is one of the largest renewable energy projects in the world. A part of Dubai’s Clean Energy strategy, the plant is anticipated to reduce a whopping 6.5 million tons of carbon emissions every year!
However, this progressive outlook is limited to a few countries. The unequal distribution of solar technology due to its economic infeasibility makes it difficult to predict whether a clean future will be equally affordable for all the denizens of the world.
Technology can be termed as successful when it touches & helps in betterment of life of masses around the globe.
The challenge is – ‘How can ‘Solar Technology’ be made affordable in next 3-5 years, such that it opens a new era in energy segment around the globe?’.