Cutting finance costs could double size of global PV market, says LONGi

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on reddit
Reddit
Share on email
Email
While there are many technology gains still to be exploited, LONGi's Xia said finance offered huge scope for LCOE reductions. Source: LONGi

Lowering the cost of finance could lead to dramatic reductions in the levelised cost of energy (LCOE) of solar, according to LONGi Solar.

Speaking to PV Tech, VP of overseas marketing at LONGi, Max Xia said the entire value chain had work to do to trim down the LCOE but the most substantial gains could be achieved by slashing interest rates.

“The final important piece of the puzzle is reducing the cost of finance,” said Xia. “We need support from development banks. If we could drive down interest rates from 8% to 1% or 2% we believe the LCOE could fall by as much as 50%. The Chinese government is looking to do more work on reducing the financial costs of LCOE as well as grid costs and land costs.”

“Together, all these elements, from polysilicon to system performance and finance, can drive down the LCOE. We think if we reduce the LCOE by 10-20%, the global industry would double in size. We'll see 20-30GW markets annually in each of Africa, India and the Middle East,” he predicted. “Grid parity in China is now less than two years away, perhaps one year. To get there globally, we need the entire value chain to perform.”

Technology gains

LONGi has its own preferred route for achieving these gains based on its advocacy of monocrystaline PERC technology. Xia ran through the improvements the industry has in its reach to drop LCOE beyond the tipping point for widespread grid parity.

“Polysilicon supply in China needs to improve its quality. This will take some time particularly for higher quality N-type. Secondly, we need larger scale mass production to reduce the price of polysilicon. From the ingot and wafer side, we need the capacity to increase and costs to fall again but this is happening as we see more and more people turning to diamond wire. On cells and modules, mono PERC, and black silicon for multi will help improve efficiency and lower costs further.

“At a system level, bifacial, glass-glass with trackers will put costs up but increase the project lifespan and the yield. There is good potential for this technology in distributed generation projects as well. Power China has some expertise and is also looking at ways to improve system performance and O&M.

“Together, all these elements, from polysilicon to system performance and finance, can drive down the LCOE,” said Xia.

Read Next

PV Tech Premium
April 22, 2021
Mark Osborne provides in-depth analysis of LONGi's new 2021 guidance and its capacity expansion plans, as the solar industry's new shipments leader aims to break away from the rest of the pack.
April 21, 2021
‘Solar Module Super League’ (SMSL) member LONGi Solar has reported total PV module shipments of 24.53GW in 2020, setting a new industry shipment record and leapfrogging rivals to become the largest PV manufacturer in the world for the first time.
PV Tech Premium
April 20, 2021
‘Solar Module Super League’ (SMSL) member Canadian Solar is planning to launch its first N-type heterojunction (HJ) PV modules in the second half of 2021, PV Tech can reveal.
April 20, 2021
Amazon has announced plans for nine new utility-scale solar and wind projects in the US, Canada, Spain, Sweden and the UK, putting it on track to powering all its activities with renewables by 2025.
April 19, 2021
‘Solar Module Super League’ (SMSL) member JA Solar has confirmed its founder and chairman, Jin Baofang had returned to work at the company.
April 19, 2021
Solar Module Super League (SMSL) member LONGi Green Energy has signed a strategic cooperation agreement with China oil and gas major Sinopec.

Subscribe to Newsletter

Upcoming Events

Upcoming Webinars
April 28, 2021
4:00 - 4:30 PM CET
Solar Media Events
May 11, 2021
Upcoming Webinars
May 26, 2021
Session 1 - 7:00 AM (BST) | Session 2 - 5:00 PM (BST)
Solar Media Events
June 15, 2021