Development of a simple analytical model to quantify the PV module cost premium associated with module efficiency and cell technology

A simple analytical model and corresponding analytical equations were developed to rapidly determine the module cost premium associated with module efficiency, temperature coefficient (γ), irradiance weighted operating cell temperature (Tiwoct), and balance of system (BOS) cost. The model provides guidelines for selecting the most appropriate photovoltaic (PV) module for a given application and establishes the price of various modules without affecting the LCOE. Analytical calculations in this paper were verified with the more elaborate PV system analysis program called the System Advisor Model (SAM) from National Renewable Energy Laboratory (NREL). For example, it is shown that 16% efficient $1/W module with area-related BOS cost=$1/W, total BOS cost=$2/W, γ= −0.45%/°C, and Tiwoct=47.3 °C is equivalent to a 20% $1.20/W module if BOS, γ, and Tiwoct remain the same. This corresponds to a premium of $0.20/W due to a higher efficiency. If the 20% efficient module has γ of −0.40%/°C instead of −0.45%/°C, then it will produce more energy, so the module cost can be increased to $1.24/W without altering levelized cost of electricity (LCOE). This corresponds to an additional price premium of $0.04/W due to γ. If Tiwoct is reduced to 42.3 °C instead of 47.3 °C by cooling or changing location, then another $0.06/W premium can be added on the module cost.