Solar Photovoltaic Grid Parity: A Review of Issues, Challenges and Status of Different PV Markets

This paper presents a review on the solar PV grid parity in the global market by analyzing all the factors having an influence on the grid parity, methodology so far adapted to investigate the grid parity and the status of PV markets of different countries. The analysis indicates that solar resources, evolution in PV module cost, progression in electricity prices, environmental cost and grid extension cost are the major factors that affect the grid parity and these factors vary time to time and market to market. Cost reduction of PV modules in global markets has followed the Swanson prediction enabling it to compete for the conventional electricity market. Germany had been leading the PV market but owing to the change in policy and decrease in incentives, its annual PV installation has been decreased since 2013. China introduced incentives based renewable policy that abruptly increased the PV installations in 2011 and now China is leading the solar PV market. Study of different PV markets revealed that PV grid parity dynamically occurs in various segments of power sectors like residential, industrial and commercial sectors at different times. This paper will be supportive for the investors to understand PV market and its constraints, for the solar policymakers to comprehend various policy incentives that would help the solar PV penetration into the current electricity market.