Definition of grid-parity for photovoltaics and development of measures to accompany PV applications to the grid parity and beyond (PV PARITY)

This project aims at defining grid parity, i.e. achieving a stage of development of the PV technology, at which it is competitive with conventional electricity sources. It also will provide relevant policy makers in the EU member states with a clear understanding of the necessary measures to support solar Photovoltaic technology in achieving grid parity. The project will also develop strategies for supporting the photovoltaic sector after grid parity is reached. As a result, an increased PV penetration in EU electricity markets and grid will be accomplished at a lowest possible price for the community.The consortium forecasts the cumulative cost of current incentives and present a cost/benefit analysis of the integration of PV systems in the markets and in the grid. Benefits related to externalities, such as the avoided CO2 costs and other environmental benefits such as the energy pay-back times and the cost of avoided fossil fuels imports will also be considered. Moreover, the project will analyse the inefficiencies and bottlenecks of the current support schemes and it develop proposals for alternative incentives for PV installations. These may include net metering (which already exists in some EU member states), premiums above the electricity prices in case of self-consumption, incentives for storage and for non-South oriented systems, and other new propositions. The new incentives should enable national governments to increase the share of PV in the electricity mix of their countries with the highest benefits and at the lowest price.