Sunny side up! The technology and economics of solar PV

As the global energy transition gathers pace, solar power is no doubt contributing to reshaping electricity generation and, more widely, energy markets. My colleagues, David Fernandez, Isabel Romero and Graeme Steer & I contributed to the recently published Solar Power Handbook by Globe Law and Business [1].

It was through the process of writing for this handbook that we were able to pull together our collective knowledge of clean energy technologies and analyse how solar PV projects can be approached for more informed investment decisions.

The importance of unlocking opportunities in solar energy

The world is moving to a new net zero economy and over the past decade, solar power has gained substantial market traction, with over 1TW [2] of capacity installed globally in early 2025 producing over 2000TWh or over 5% [3] of global energy generation.

Whilst tracking slightly behind wind farm deployment, solar PV farm deployment is set to surpass wind farm deployment by year 2027 in generation and by 2029 should lead all renewables globally.

Leading technologies in the energy transition covered in the Solar Handbook:

Photovoltaic (PV) systems: A scalable and proven technology

Solar PV technology converts the energy from sunlight into electricity and is now a cost-competitive form of renewable energy with specific costs steadily reducing since inception. Solar PV systems cover a range of practically deployable applications, from residential rooftops to larger utility-scale installations. Year-on-year costs have been reducing to the point where direct subsidies are reducing or being removed, and improved efficiency has propelled growth globally.

To address intermittency challenges, many companies are starting to integrate battery energy storage systems (BESS) into Solar PV projects, enabling surplus energy storage and stable power supply even during low irradiance periods. We have carried out numerous feasibility studies, bankable energy yield studies, due diligence, owner’s engineer, expert witness and optimisation studies for our clients who are key developers, utilities, and infrastructure funds globally.

Concentrated solar power (CSP): Dispatchable and grid-stabilising

CSP technology uses mirrors or lenses to concentrate sunlight for electricity generation. A key benefit of CSP is its ability to store thermal energy – often as a molten salt - making it capable of dispatching power when the sun does not shine. This helps with grid stability and offers clients the potential for reliable, dispatchable renewable energy.

CSP can outperform other renewable energy technologies particularly in regions with high Direct Normal Irradiance in solar belt areas, e.g. MENA regions, Northern Chile, Inner Australia, South Africa. CSP can incorporate thermal energy storage solutions of typically 6 to 15+ hours. This enables CSP to deliver dispatchable power even after sunset, making it ideal for regions with high evening or nighttime electricity demand. Furthermore, CSP can be integrated with industrial processes, supplying high-temperature heat for applications like desalination, hydrogen production, or industrial heating.

CSP has higher upfront costs and is more complex to deploy but the ability to provide firm, dispatchable, and grid supportive power makes it a strong contender in specific geographies and uses. It is particularly valuable in integrated energy systems where both electricity and thermal energy are needed, or where grid reliability and storage are critical. There are example case studies like the Noor Ouarzazate Solar Complex in Morocco with a capacity of 580 MW and 7.5 hours of thermal storage. Another example is Cerro Dominador located in Chile’s Atacama Desert. It uses a solar power tower with 110 MW capacity and 17.5 hours of molten salt storage, enabling 24/7 renewable electricity generation in one of the world’s sunniest regions.

Powering remote locations: Off-grid projects

Off-grid solar solutions can provide electricity to remote areas, areas where there is no grid infrastructure, or areas of constrained grid. These systems are especially valuable for industrial, mining, or community applications. Robust system design and high-capacity storage are required to ensure reliability. For instance, higher storage capacity enables the operation to continue reliably for the duration of the battery storage technology, for example, in tier 3 data centres where uptime is critical, lower storage capacity could mean a shortfall in power supply to the operation and that operation will need to be curtailed.

SLR offers comprehensive feasibility assessments, system design, and long-term performance strategies for these critical installations.

Colocation projects

Colocation projects that combine solar with other energy sources and storage are an increasing trend. Solar and wind often have a negative correlation in power generation patterns that complement each other and lead to a more stable power generation output profile, which is more beneficial to demand users. In the northern hemisphere, solar photovoltaic (PV) systems and battery storage often have complementary dispatch profiles, resulting in fewer periods of operational overlap. Our advisory teams have observed this compatibility which can make it feasible to share a single grid connection, thus reducing capital expenditure. Using techno-economic-risk system simulations, we can help you navigate the complexities of optimising sizing for energy solutions comprising multiple generation and storage sources.

Technology selection: site and portfolio assessment

SLR can support the site selection process using our proprietary machine learning and geospatial digital tools to help identify sites and grid connection routes. Our grid team can advise on available grid capacity and grid connections. Our commercial teams can help size technologies within colocation projects based on revenue stream forecasts and the cost functions of the project. Our modelling uniquely includes using Monte Carlo simulations, that help our clients quantify risk and return envelopes for portfolio efficient frontiers as well as risk and return at an asset level.

PV module technology and innovation

Understanding solar modules and how they perform as a system is critical to techno-economic optimiation. Monocrystalline modules have typical efficiencies ranging typically from 18–22% efficiency at nominal conditions. Other technologies like polycrystalline are less efficient and range typically between 15–18%. Others like thin-film modules are considerably lower around 10–13% but are lightweight and have good performance with diffuse irradiance. Frontier technologies such as perovskite are aiming for efficiencies in the range of 20–25%, however, this is under laboratory conditions and still to be proven at commercial scale. Emerging technologies such as half-cut cells and bifacial modules are improving efficiency and design. These help to mitigate shading losses and improve land-use, an advantage in constrained or high-cost land areas. We help select the most suitable modules for project and location specific requirements whilst considering the implications of wider system technology choices. We also advise on direct current DC:AC ratios, optimiing the direct current (DC) power output of the solar panels to the alternating current (AC) power output at the inverters and module configurations in order to improve energy yield.

Leading companies adopt solar energy proactively

As solar technology continues to evolve rapidly, it’s easy to lose track of the ins and outs of your solar project lifecycle. And the current market is fast-paced, not to say volatile, so I often remind our clients that a solid understanding of the technology and the related economics will get them to financial investment decision more efficiently.

Many of our recent client projects have spanned a range of sector applications and geographies and include services along the full lifecycle of renewable energy projects, from early-stage feasibility and technical due diligence to grid connection, asset management, and expert roles. In the funding and development of solar energy solutions and in colocation with battery storage, our advisors help organisations to understand the technology, the supply chain, the commercial realities, energy yield and their investment profiles to accelerate financial investment decisions (FID) on a more optimal basis with respect to both investment risk and return.

If you would like to see how we support operational teams deliver on-grid, off-grid, solar PV, CSP-based projects, or develop colocation projects with storage or other renewable energy sources, reach out and we will show you how our capabilities can help with your projects. And for a more in-depth examination of the route to market for solar PV, technology pricing levels and the recent trend of colocation of solar PV with battery storage, see Solar Power: A Practical Handbook.

Advisory Digest

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References:

[1] https://www.globelawandbusiness.com/books/solar-power-a-practical-handbook-second-edition

[2] Renewable capacity statistics 2025

[3] Global trends – Global Energy Review 2025 – Analysis - IEA