The cost of solar electricity produced by photovoltaic installations continues to fall. This decrease is mainly related to several factors, including:
- the economies of scale associated with the increase in production volumes of all the components necessary for the operation of a solar installation,
- improvement of the overall efficiency of solar system components, modules, inverters and batteries,
- the arrival of IMEON hybrid inverters to the market, which increased the performance of photovoltaic installations with storage by up to 30%.
These distinct determinants have brought the cost of kWh produced by the solar system down by a factor of 4 in the last 5 years, thus making solar electricity prices competitive enough to reach grid parity.
We talk about grid parity when the price of a kWh produced by a photovoltaic installation becomes competitive with one offered by conventional energy suppliers.
Grid parity has already been achieved in many countries, such as Germany, which do not benefit from particularly generous sunshine. As the cost of fossil fuels continues to increase, the grid parity will gradually be reached all over the world and as a consequence, solar electricity will take a leading role in global energy supply.