CPV technology looking good as long as cost reduction goals achieved, says GTM Research

Facebook
Twitter
LinkedIn
Reddit
Email
The cost competitive position of concentrating photovoltaic (CPV) technologies, especially since polysilicon prices have continued to fall from the heights of 2008, have constrained more widespread adoption. However, a new detailed report from GTM Research highlights a brighter future for the sector should CPV companies achieve their cost reduction roadmaps. In particular, the installed cost of CPV systems need to be reduced by more than 30% over the next four years for CPV installations to reach a healthy 1GW per annum rate by 2015.
 
“Developers choosing a solar technology for a large power plant focus on two factors: cost per kilowatt-hour (kWh), and bankability,” noted Brett Prior, the report’s coauthor and senior analyst at GTM Research. “CPV’s promise has been a lower cost/kWh, but it has been hamstrung by a lack of bankability, as the technology’s track record is much shorter and its performance warranties were not backed by strong corporate parents.” 
 
The report, entitled “Concentrating Photovoltaics 2011: Technology, Costs and Markets,” highlights that there are three CPV companies (Amonix, Soitec Solar [the former Concentrix], and SolFocus) leading the CPV market for installations by accounting for 96% of global projects in operation, construction, or development (with signed power purchase agreements). 
 
However, new and existing entrants are gaining traction at a much-faster pace, supporting arguments that competitive cost structures are improving, despite limited manufacturing scale, and proving that projects can be secured, as recent announcements support.
 
“These relationships will be key in generating additional demand for CPV projects,” added Prior. “They bring credibility to the technology, and will help future plants to secure project finance from the major banks.” 
 
However, both conventional C-Si and thin-film technologies dominate the PV market, as the CPV installed base is at only 28MW globally, compared to 33GW of total cumulative installations, according to the report. 
 
A key area where costs could be reduced is in improving cell efficiencies; a number of companies have set new efficiency records, primarily with triple-junction cell technologies. 
 
Total system costs should also get a boost as more projects get built and a steeper cost reduction learning curve gains traction.
 
This article requires Premium SubscriptionBasic (FREE) Subscription

Unlock unlimited access for 12 whole months of distinctive global analysis

Photovoltaics International is now included.

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Unlimited digital access to the PV Tech Power journal catalogue
  • Unlimited digital access to the Photovoltaics International journal catalogue
  • Access to more than 1,000 technical papers
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

Read Next

July 1, 2025
Spanish independent power producer (IPP) Zelestra has secured financing and reached financial close for its 220MW solar-plus-storage plant in Chile.
July 1, 2025
Independent power producer (IPP) Arevon Energy has closed a US$600 million credit facility to support its solar PV and energy storage portfolio in the US.
July 1, 2025
The UK government has released this week (30 June) its Solar Roadmap, which sets out practical measures to meet the country’s solar PV targets.
July 1, 2025
Solar developer ib vogt has sold a 110MW solar PV plant in Spain to international fund NextPower V ESG, which is operated by investment firm NextEnergy Capital (NEC).
July 1, 2025
French private equity firm Ardian Clean Energy Evergreen Fund (ACEEF) has bought 117 solar PV plants, worth 116MW of total capacity in several locations in Italy.
July 1, 2025
Swedish independent power producer (IPP) OX2 has begun operations at a 100MW solar PV plant in Poland, its first project as an IPP.

Subscribe to Newsletter

Upcoming Events

Media Partners, Solar Media Events
July 2, 2025
Bangkok, Thailand
Media Partners, Solar Media Events
September 2, 2025
Mexico City, Mexico
Solar Media Events
September 16, 2025
Athens, Greece
Solar Media Events
September 22, 2025
Bilbao, Spain
Solar Media Events
September 30, 2025
Seattle, USA