Economic Analysis of Solar Photovoltaic in New Zealand - Samples

Question: Discuss about the Economic Analysis of Solar Photovoltaic in New Zealand. Answer: Introduction The use of solar power in New Zealand in the current days contributes to more than 0.1% of the overall electricity generation in the country. With the current increasing demand for the PV solar power, the country will have to undergo economic changes. The content of this paper therefore analyses the photovoltaic energy generation in New Zealand. PV Technical Characteristics The solar energy use in New Zealand has increased since the year 2014 based on its sustainable characteristics. The most solar energy used in New Zealand is solar photovoltaic known as PV. The generation of PV has various technical characteristics which has resulted into the increased use of solar energy in New Zealand. The main technical characteristic which has made generation of PV more effective is its environmental effect (UMR-MEC Conference on Energy, Morgan Missouri, 2007). According to the report revealed by the parliamentary commissioner indicates that generation of PV in the country reduces carbon footprint in New Zealand even though the rate is low. Moreover, the photovoltaic panels have no mechanical moving part thus very easy to use to generate electricity, the generation of PV also occurs in one way thus direct and easy to maintain.. Another main characteristic of PV generation is its zero carbon emission ability during the all process thus most countries are investing in the solar power to reduce the carbon footprint. In New Zealand the carbon footprint is too low thus reduced use of the solar power (Ogach et.al 2011). Generation of PV during the winter is too low affective. The PV panels are made in a way not to store the converted solar power into PV for a long time and this affects the users during the seasons. This can be improved through manufacture of powerful batteries which can help with the storage of power generated by the solar photovoltaic panels (Ogach et.al 2011). PV Economic Characteristics and NZEM There are variouseconomic characteristics of the PV and the NZEM less or more effective and suitable for the users in New Zealand. Photovoltaic generation iseconomic friendly as the process involves no use of mechanically moving machines apart from the case of sun-tracking mechanical bases. This makes this suitable and sustainable based on the low cost of production involve (Ogach et.al 2011). Another feature making the use of photovoltaic generationeconomic friendly is the low cost of solar panels in New Zealand many people are therefore able to acquire the panels and use the panels for the household purposes. On the other hand PV generation has other economic characteristics which makes it use not suitable in New Zealand. The use of PV generated energy comes with an additional burden where for one to use the PV panels, an individual installing the panels is required to purchase inverters. Inverters are equipment which are used to directly convert direct electricity DC to an alternative electricity AC which can be used on the power networks. Photovoltaic panels does not function effectively without the use of storage batteries which also increases the cost of solar PV panels (UMR-MEC Conference on Energy, Morgan Missouri, 2007). Concrete Economic Scenarios for PV The use of solar PV energy has been witnessed in most areas in New Zealand in the recent days. This is as a result of the low solar energy panel prices, however, the solar PV energy remain one of the major renewable energy system that is promoted through government subsidy funding in NZ. Solar PV energy has become most attractive investment which is likely to make more income in terms of revenues (Renewable Energy Resources Information Center, 2012). The use of solar PV energy has resulted into new economic benefits and new investments. New technologies are being developed for solar PV which include organic PV cells, perovskite PVs as well as inorganic quantum dot solar energy cells. Several ways are being used by various household to acquire the PV, however, the widely used economic way is the net present value. Most households in NZ and other parts of the world are resolving to the use of solar due its economic advantage. In near future, most of the world nations will adopt solar P V energy use. Conclusion It is clear that the solar photovoltaic energy has various economic advantages as well as environmental benefits. The future of the industry is great as this has resulted into various investments in cell production. The Solar PV energy has both economic advantages and disadvantages which makes the usage sustainable. References Ogach, V. S., Cabraal, R. A., Exel, J., Pham, N. A., World Bank. (2011). Vietnam: Renewable Energy Action Plan. Hanoi: Vietnam Development Information Center. Renewable Energy Resources Information Center, (2012). RERIC holdings list: An occasional publication of RERIC.NZ: Renewable Energy Resources Information Center, Asian Institute of Technology. UMR-MEC Conference on Energy, Morgan, J. D., Missouri. (2007). Third Annual UMR-MEC Conference on Energy, October 12-14, 1976: Theme--energy crisis, an evaluation of our resource potential. Rolla: University of Missouri-Rolla.