The document summarizes and rebuts 5 common myths about solar photovoltaic (PV) power: 1) PV is too expensive, but PV module prices have more than halved since 2007 due to economies of scale and competition. 2) PV increases bills for consumers, but in Germany 75% of renewable energy subsidies flow back to households and small businesses. 3) PV is too inefficient, but efficiencies continue to increase from research and range from 13-18% for modules and up to 43.5% in labs. 4) PV doesn't work on cloudy days, but modules still generate power under clouds and sites choose modules with lowest performance dips. 5

1. Setting the solar story straight
5 common solar myths

2. Myth #1: PV is too expensive
ate last year, Reuters reported that solar
PV “is up to eight times more expensive
than conventional forms of power like
coal and gas.” However, reality
contradicts the rhetoric.
he cost of PV is becoming cheaper by
the day. PV module prices themselves
are a good example. Since 2007, it can
confidently be said that module prices
have more than halved, for every type f scale for modules, inverters and
of semiconductor technology and for mounting systems; robust international
manufacturers from all over the world competition; the use of lower-cost
(see graph). manufacturing locations for modules;
and rapidly plummeting polysilicon
riving down the cost of PV has been prices.
achieved through a variety of combined

3. Myth #2: PV increases bills for consumers
enewable energy is sometimes accused
of raising electricity prices. But is this
really the case?
n 2012, it is estimated that German
households will pay 3.6 euro cents per
kWh, which is expected to amount to
€17.6 billion (US$23.11 billion). This is a
serious amount of money, but it’s worth
asking: where is this money going?
hat means 75 percent of all German FITs
report late last year from Germany’s go to utility-rate payers, homes, farms
Renewable Energy Agency showed that and small businesses, instead of the big
“private individuals / households” own utilities and banks. So while households
40 percent of green power generating pay for the EEG, most of it flows directly
projects, “farmers” make up 11 percent back into the community.
and “businesses” make up nine percent.

4. Myth #3: PV is too inefficient
ercent, and cell efficiencies from around
10 up to a whopping 43.5 percent – the
highest results being recorded in
research laboratories.
o while all this is going on, perhaps an
analogy used by the father of dye-
•A common criticism of solar PV is that sensitized PV, Michael Grätzel, can help
solar panels are just too inefficient. explain how efficiency isn’t everything.
•However, with the wide range of
research taking place, from educational e implores us to adopt a new perspective
institutions to R&D from module makers on PV by looking to a tree, with countless
and equipment suppliers, efficiency is leaves photosynthesizing in the sun. He
always increasing. At present, module observed that each leaf is only about one
efficiencies range from around 13 to 18 percent efficient, but together, the
thousands of leaves capture the energy
from the sun, which all life relies on.

5. Myth #4: PV doesn’t work on cloudy days
V continues to function under cloudy
skies. PV modules are usually tested at
Standard Test Conditions, however real
conditions vary largely.
ence, power generated by modules
under cloudy conditions is also tested.
This is known as low-light condition
performance. When a solar power plant
is built, professionals do an analysis not odules they wish to install. Thus,
just of the cost of development and modules are tested under low-light
performance data, but they also take conditions as well and if the right ones,
into account the area’s irradiation. with the lowest performance dips under
cloudy conditions are selected, then PV
imulations are then used to gauge the power is still produced on those grey
efficiency of a standard module under days.
different light conditions and planners

6. Myth #5: PV cannot compete with fossil fuels
ome say PV will never compete with
fossil fuels or nuclear power. But the cost
of PV is falling, and falling fast.
nalysts A.T. Kearney produced an
analysis of three key markets to assess
whether PV can compete with power
costs for the consumer (known as
dynamic grid parity) in the residential,
commercial and industrial segments.
ven with the conservative assumption
that wholesale electricity prices will
remain stable, PV can be seen to be
competitive in the coming years:
n Germany as early as 2014;

7. Be a Solar Superhero!
v magazine will be challenging common
myths monthly, head to pv-
magazine.com for the latest information.