Grid parity for residential and commercial consumers is in sight in many European countries, according to new research from the PV Parity project consortium.
The group assessed the evolution of system prices, retail electricity prices and cost of financing, as well as the capacity in various countries to self-consume photovoltaic electricity produced. The findings are decisive: Grid parity is imminent in several countries. The smooth transition to full grid parity will be essential to adapt support schemes properly in the coming years, PV Parity adds.
Different parameters affect the achievement of grid parity: Competitiveness in the residential and commercial/industrial segments depends on dynamic parameters, such as the evolution of retail electricity prices, system prices, cost of financing and the rate of self-consumption of electricity of each user.
In the residential segment, the earliest date on which competitiveness can be achieved varies widely for the different target countries, depending on irradiation differences, the maturity of each national PV market andÂ the level of retail electricity prices in each country.
According to the results, grid parity is starting to be achieved already in Germany, southern Italy, the Netherlands and Spain. These countries and regions are expected to be followed by northern Italy, Portugal and Austria in the next two years and then progressively by other countries.
By the end of the decade, depending on how prices will evolve but also on the cost of financing, grid parity could be achieved in all target countries, according to the consortium.
Further information on the research results is available here.