Some people who are just starting to invest in solar power generation and those who are already working on the solar power generation business are wondering whether there is a future for solar power generation. Many people may be worried about the future of photovoltaic power generation.

Photovoltaic power generation and mega-solar are businesses with a promising future. However, the environment surrounding solar power generation is changing, so it is necessary to develop business in line with the times.

Therefore, this time, we will introduce in detail the future potential of solar power generation from various points such as the system and purchase price. If you are interested in the future while looking for information related to Solar energy in Pakistan  or are considering investing in  solar power generation

Does Solar Power have a Future? Relationship with Carbon Neutrality

Some say that there is no future for solar power. However, the world is progressing in the direction of promoting carbon neutrality and renewable energy, and it is a facility with a future in terms of ease of introduction.

The world, including Japan, is promoting activities to reduce emissions of harmful substances and curb excessive use of energy in order to solve the problem of climate change. Among them, carbon neutrality is a movement aiming for net zero CO2 emissions, and it is also an element that increases the demand for renewable energy.

By installing solar power generation, it is possible to significantly reduce CO2 emissions, and it is also possible to aim for net zero CO2 emissions by linking with ZEB (Net Zero Energy Building) and energy-saving equipment.

Future Prospects and Issues of Photovoltaic Power Generation

Solar power itself is a clean energy and future installation. However, there are still issues with related systems and costs, so it is recommended that those who plan to invest in solar power generation understand the issues. From here, we will introduce the future prospects and challenges of solar power generation

Initial cost will continue to decline

The initial cost of solar power generation is declining year by year, and the same trend is expected to continue in the future. Residential photovoltaic power generation that was sold in 1993 was expensive at 3.7 million yen for an output of 1 kW. As of 2022, the price is around 200,000 yen per kW, so it is about 19 times the price range.

The reason why it is getting cheaper is because the manufacturing cost continues to fall due to the spread of solar power generation and improved performance.

In terms of initial cost, solar power generation can be said to be a renewable energy facility that is easy to introduce for individuals and small and medium-sized enterprises. In addition, if the cost is low, the initial cost recovery period can be shortened, making it easier to achieve energy independence.

Fixed purchase prices continue to fall

As the feed-in tariff continues to fall, it can be said that the situation is a little difficult for solar power generation investment through new FIT approval. By using the renewable energy support system “FIT system”, you can start selling electricity at a fixed purchase price for 10 or 20 years. (Output less than 10 kW: 10 years, Output 10 kW or more: 20 years)

The fixed purchase price varies depending on the fiscal year in which FIT certification is received, and is updated every fiscal year. For example, if you receive FIT certification in fiscal 2022, you can sell electricity for 10 or 20 years at the fixed purchase price set in the same fiscal year.

When the system was launched in 2012, the unit price was as high as 40 yen per 1kWh. However, the feed-in tariff for photovoltaic power generation is renewed every year in a downward direction in line with the spread of equipment and lower manufacturing costs.

In addition, since the government has a goal of equalizing  Solar Panel Price in Pakistan  and the power purchase cost, it is believed that the feed-in tariff will continue to fall in the future.

With the fixed purchase price in 2022, the initial cost and maintenance cost can be covered by the income from selling electricity, but it is a difficult situation for those who emphasize income from selling electricity. Therefore, it is necessary to carefully consider new operations relying on fixed purchase prices.

Recommended Article: 5 Best hostellers and places