4.4 WHAT IS THE COST OF PV ?

4.4.1 Overview

High investment costs are one of the major barriers to the development of PV markets in the short to medium term, although a continued downward trend in system prices can be observed over time. PV systems, and especially grid connected PV systems integrated into buildings, are locked in a critical "chicken and egg" situation between today's system price and the future economies of scale in manufacturing.

Nevertheless, the falling cost of PV cells and modules has been a crucial factor in the recent development of PV technology. An indication of the potential for increased efficiency in the production of cells has already been given, together with the likely shift in favour of cheaper thin film technologies.

However, unlike most conventional electricity generators, the costs associated with a PV generator after installation (operation and maintenance) are very low. Overall, today's costs make photovoltaic generators an economically attractive choice in a large variety of applications where no mains electricity is available.