Change in system cost structure to affect solar stimulation strategies Nuying Huang,Taipei;Jackie Chang,DIGITIMES[Monday 14 May 2012]The ratio of solar modules and balance of system(BOS)was 1:2 in 2007-2008.When governments cut incentives,the price of solar modules will immediately be adjusted to stimulate demand and hold a certain range of internal rate of return(IRR).Nevertheless,the current ratio is 3:1,meaning the cost of solar modules accounts for a small part of the cost structure of a solar PV system.Hence when solar incentives are cut,lowering the price of solar modules can no longer stimulate demand effectively.
The cost structure of a solar PV system is divided into cost of solar modules plus BOS.The latter consists of the cost for PV inverters,chargers,land,and labor.
The solar supply chain has been striving to improve the quality of products to stand out in the market.
Industry sources added that in recent years,Europe-based solar module firms have been demanding solar cell makers provide potential induced degradation(PID)Free Certification hoping solar cells can sustain different weather and temperature conditions.Industry sources noted that it has not been difficult to obtain PID-free certification,but such products need careful yield controls in order to maintain a level of average conversion efficiency.
Lower solar module prices no longer stimulate demandPhoto:Digitimes file photo
