Understanding Grid Parity A look into the future of Solar PV

This paper reviews grid parity issues of solar photovoltaic power generation technology. While grid parity is accepted amongst most experts as inevitable, the authors of the literature reviewed in this study exhibit a wide range of differentiation in the means and timeframe for reaching it. The paper discusses the emergence of grid parity as a term used amongst the solar PV community. An overview is provided for two major forecasting tools used for calculating and predicting grid parity. An interpretive policy analysis is summarized based on several articles relevant to a mass emergence of PV in future energy markets. From our study, grid parity will be reached on a location-by-location basis based on market prices and solar insolation. With current technology solar PV generation cannot operate as a stand-alone per-megawatt replacement for conventional generation methods. Grid parity will be reached for small grid level generation independently from utilities scale generation. Further, the market for solar PV will need to be self-sustaining without incentives and government price setting.