Why are High-Efficiency Components more Expensive than Ordinary Components?

Why are high-efficiency components more expensive than ordinary components? There are two main reasons:

1 Saving auxiliary costs

1) Assuming a project site capable of installing 10,000 PV modules, when using 270W components and 300W components, the project investment,

The amount of all equipment (including combiner boxes, AC and DC cables, brackets, foundations, bridges, monitoring and communication, etc.) other than components, inverters, transformers, etc., is the same;

The amount of construction (road, cable trench excavation, etc.) is the same.

However, the former is 2.7 MW and the latter is 3 MW, so the average cost per watt is equally shared, the latter being 10% lower than the former.

2) Assume that to complete the investment of a 2.7MW project, 10,000 270W components and 9000 300W components are required.

All equipment except components, inverters, transformers, monitoring and communications equipment (including combiner boxes, AC and DC cables, brackets, foundations, bridges, etc.) will be reduced by 10% as component usage decreases;

The amount of construction (road, cable trench excavation, etc.) will also be reduced by 10%.

If the construction investment of the combiner box, AC/DC cable, bracket, foundation, bridge and other equipment and road and cable trench excavation becomes “auxiliary cost”, the auxiliary cost varies greatly for different types of projects:

However, the agricultural light complementary project, the use of tracking brackets, etc., will push up the auxiliary cost to make the auxiliary material cost.

In this case, saving 10% of the auxiliary cost is very impressive!

2 save land cost

The land cost of the mid-eastern agricultural and light complementary project is increasingly high, and the roof rent of distributed photovoltaics is also getting higher and higher, which are the cost of land for photovoltaic projects. With the same capacity installed, the 300W component is definitely more space-saving than the 270W component, thus saving land cost.

Taking distributed as an example, the current roof rent is between RMB 3/m2 and RMB 10/m2. With efficient components, you can save a certain amount of roof rent every year.

For auxiliary costs, the savings are capital, which is offset by the cost of the components;

For the cost of land use, because it is to save annual operating costs, it needs to be discounted. Assume that the land/roof utilization rate is 85%, that is, 85% of the area is covered by the component, and the remaining 15% is the channel; the actual roof utilization is generally less than 85%, and the cost of land saved by the high efficiency component is more. Discounted at a discount rate of 8%.

3 summary

The above conclusion is based on the premise that the power generation of the different types of components is the same.

Efficient components are more cost effective in the following situations:

1) Construction conditions are particularly complicated and construction costs are particularly high;

2) Using a tracking bracket, the cost of the bracket is high;

3) The support of agricultural light complementary, fishing light complementary, etc., the basic cost is high;

4) Projects with particularly high land rent or taxes and roof rents;

5) For projects with particularly good project returns but limited roof area, efficient components can generate more revenue.

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