How Photovoltaic Cells Work and Their Role in the Energy Revolution
When discussing renewable energy sources, solar is often the first source to consider. But what are photovoltaic cells and how do they work? PV technology is the foundation upon which the solar energy revolution is built.
Here’s how they work and how rapid technological advancements have made the technology commercially viable.
How Do Photovoltaic Cells Work?
Photovoltaic (PV) cells are made up of two or more layers of semiconductor material, usually silicon. When photons from sunlight hit the PV cell, they knock electrons loose from their atoms. The electrons then move around within the layers of material in a process known as “the photoelectric effect” This movement creates an electric current that can be used to power electrical devices.
Improvements in Technology
Thanks to technological advances over the last decade, PV cells have become much more efficient at converting sunlight into electricity. For example, monocrystalline silicon is now widely used for PV cells because of its high efficiency—it can convert up to 22% of incoming sunlight into usable energy. Furthermore, many PV cells now include tracking systems that allow them to follow the sun’s path throughout the day for maximum efficiency.
Are PV Solar Panels Commercially Viable?
The good news is that PV cells are indeed commercially viable in the US—they are one of the most popular renewable energy sources available today. According to a recent study by SEIA/GTM Research, solar installations accounted for nearly 40% of all new US electricity capacity added in 2016, and that number has increased every year since.
The Cost of Commercial Solar Panels
The size, location and other factors influence the total installation price of a commercial solar array. The average installation cost in 2021 was $2.87 per watt, with an install price range between $2.50 and $3.22.
Based on those averages, expect a small 25kW system to cost approximately $50,000.
How Much Do Commercial Solar Panels Save on Energy Costs?
Solar panels reduce the average monthly commercial energy bill by 75%. There is plenty of variation based on industry, location and other factors, but a professional energy consultant can help you identify a more precise amount.
The more you pay monthly, the sooner your solar panel investment will pay for itself.
Consider a facility with a monthly energy bill of $1,000. Saving 75%, or $750 per month, is a $9,000 annual savings and a 4-6 year return on investment. That’s also $750 per month to invest in other areas of your business to grow, increase profitability or diversify into new products or services.
The Future of Energy Relies on PV Technology
In conclusion, photovoltaic cells have come a long way over the past decade thanks to improvements in technology and materials science. Today’s PV cells can convert up to 22% of incoming sunlight into usable energy, and many now include tracking systems for maximum efficiency.
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Keen Technical Solutions has worked with forward-thinking businesses across industries to reduce energy costs and meet climate objectives. From improving efficiency to adopting on-site renewable energy sources, we bring a comprehensive and detailed approach to meeting your facility’s needs. Get in touch to start your energy journey.