Parity photovoltaic supporting energy storage

Grid parity in solar PV refers to the point where the cost of generating electricity from solar power becomes equal to or less than the cost of buying power from the grid. In simpler terms, it's when solar energy becomes as affordable, or even cheaper than electricity produced from traditional sources like coal, natural gas, or nuclear power.

Although this paper analyzed the grid parity of DPV power generation in China, the results and conclusions are of reference value to other countries and regions, especially in areas where DPV power generation has not yet achieved grid parity.

Grid parity is significant because it marks the point where solar energy can compete with traditional energy sources without needing government subsidies or incentives. When solar PV reaches grid parity, it becomes a more attractive option for consumers, leading to increased adoption of solar power.

Several factors influence when and where grid parity is achieved. These include the local cost of electricity from the grid, the amount of sunlight a region receives (solar insolation), the cost of installing and maintaining solar PV systems, and government policies or incentives that support renewable energy.

In August 2019, the Shandong Energy Administration released the “Notice on Improving Grid Access for Grid Parity Projects in Shandong,” which encouraged large-scale centralized solar PV projects to install energy storage systems in order to reduce solar curtailment.

To conduct a grid parity analysis of DPV generation in Brazil, Pillot et al. assessed how likely grid parity would occur with respect to the system's nominal power and financing scheme in a net metering framework through the use of a probabilistic Monte Carlo approach.