In most cases, the cost of solar power generation projects can be divided into initial investment cost, operation and maintenance cost, and other costs.

(1) Initial Investment Cost

Initial investment cost is the most important factor to determine the total cost of the project, which generally includes unit cost, construction and installation cost, primary land cost, power grid access cost, etc. the proportion of each cost is shown in Figure 1. From 2007 to 2019, the initial investment of photovoltaic power plants has dropped by more than 90%, and will keep declining slowly in the future.

(2) Operation and Maintenance Cost

The operation and maintenance cost of photovoltaic power generation mainly includes module cleaning, module support and foundation maintenance, equipment planned maintenance, equipment test and so on. There are obvious differences in operation and maintenance cost for projects located in different regions. According to statistics, the current operation and maintenance cost of photovoltaic power generation China is 0.04 ~ 0.07 Yuan (0.005-0.01USD)/W/year.

(3) Other Costs

Other costs mainly include financial cost and tax cost. Financial expenses refer to the relevant expenses arising from financing and the expenses arising from the use of funds, which are related to the financing environment and government policies, as well as the length of the construction period and the use time of funds.

In terms of taxes and fees, it is mainly enterprise income tax and value-added tax. Photovoltaic power generation projects can enjoy the policy of exemptions of enterprise income tax in many countries.

(4) Future Forecast

In the future, new energy power generation technology will play an increasingly important role in China's energy and power development. The decline of new energy generation cost provides a strong guarantee for this. However, with the continuous improvement of the penetration rate of new energy, problems such as power grid transmission capacity, system flexibility transformation, power system inertia reduction, thermal power unit peak shaving transformation have been widely concerned. The fundamental reason is that the power generation output of new energy has volatility and randomness. In order to ensure the safety and reliability of power supply, the power grid and other power sources need to provide support for it. This is also a problem that all countries in the world must solve in the process of developing new energy projects.

In 2021, Raytech will continue to focus on global solar market to provide high-quality solar panels and 24/7 service to our clients. Raytech Double-glass modules come with 12-year product warranty and 30-year performance warranty, 2 years and 5 years longer than industry's standard warranty respectively.