Economic Study of Solar Photovoltaics

This paper presents the idea about solar energy and its importance over fossil fuel. The main activities which are reported are related to solar photovoltaic (PV) market, market barriers on solar technologies, cost of PV system and cost reduction potential. The importance of renewable energy is discussed and how the solar energy is more superior to other renewable energy sources is studied. As the major part of solar energy is trapped through photovoltaic systems, its advantages are also discussed. The cost of photovoltaic modules is the prime parameter in deciding the tariff rates of electricity that is harvested from solar photovoltaic technology. So it is essential to study the present market structure for solar photovoltaic. And also the market barriers on solar photovoltaic technologies cost of PV systems and the potential areas where cost reduction can be done are discussed. Concluding remarks recommend that economics of scale are quite vital to realize lower cost of production for the solar products.