Solar Park | Electricity control costs for photovoltaic open-air systems: meaning and economy with example

Photovoltaic open-field systems: Is the investment more worthwhile than ever?

The current levelized cost of electricity (LCOE) for ground-mounted photovoltaic systems, ranging from 4.1 to 6.9 cents per kilowatt-hour, clearly demonstrates how competitive solar energy has become compared to conventional energy sources. This development has far-reaching implications for the energy sector and the economic viability of solar power plants.

What are the levelized cost of electricity (LCOE)?

Levelized cost of electricity (LCOE) refers to the average cost of generating one kilowatt-hour (kWh) of electricity over the entire lifespan of a power generation plant. This metric allows for a direct cost comparison between different power generation technologies.

The calculation includes:

• Investment costs for purchase and installation
• Operating and maintenance costs
• Financing costs
• Potential fuel costs
• Dismantling costs at the end of service life

The simplified formula is: (present value of total costs over the lifetime) / (present value of all electricity generated over the lifetime).

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• Power control costs in comparison: is nuclear power really more expensive than renewable energies?

Cost comparison of photovoltaic open-field systems

With electricity generation costs of 4.1 to 6.9 cents per kilowatt-hour, ground-mounted photovoltaic systems are currently the most cost-effective form of electricity generation in Germany. For comparison, the generation costs of other energy sources are significantly higher

• Lignite: 15.1 to 25.7 cents/kWh
• Nuclear energy: up to 49 cents/kWh

Fraunhofer researchers even predict that these costs could fall further to 3.1 to 5.0 cents per kilowatt hour by 2045.

When does a ground-mounted photovoltaic system become economically viable?

A photovoltaic system is considered economically viable if the income from feed-in tariffs and the savings on electricity costs exceed the investment and operating costs. Several factors play a crucial role in ground-mounted systems:

1. Area size and system dimensions

Profitability increases with the size of the plant. Many project developers only become active with areas of at least four to five hectares, as economies of scale then come into play. However, smaller projects can also be profitable if the generated electricity can be used in the immediate vicinity.

2. Remuneration and Marketing

The following compensation models are currently offered:

• Systems under 1,000 kWp: Fixed feed-in tariff of 7.00 cents per kWh
• Installations over 1,000 kWp: Participation in tendering procedures with a maximum value of 6.8 cents per kWh for 2025

Increasingly, plants are also being operated economically outside of EEG subsidies via Power Purchase Agreements (PPAs).

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• What are Power Purchase Agreements (PPA)? -Economic operation of renewable energy systems without EEG funding

3. Payback period

The typical amortization period for photovoltaic systems is between 10 and 15 years. After this time, the initial investment is refinanced, and the system generates profit for the remainder of its lifespan of 20 to 30 years.

4. Network parity

Grid parity refers to the point at which the cost of self-generated solar power is equal to or lower than the cost of electricity from the public grid. This threshold was reached in Germany as early as 2012, which fundamentally improved the economic viability of solar power systems.

The particular economic advantages of open-space facilities

Ground-mounted solar power plants offer several economic advantages compared to rooftop solar power plants:

1. Lower investment costs: Installation on open areas is often easier and cheaper than on roofs.
2. Optimal orientation: Open-field systems can be perfectly aligned with the sun, leading to higher yields.
3. Economies of scale: Larger plants benefit from lower costs per installed kilowatt.

Cost development

The levelized cost of electricity (LCOE) for photovoltaics has fallen drastically in recent years – by about 90% between 2010 and 2020. This trend is likely to continue, albeit at a more moderate pace.

For comparison: Current electricity prices for end consumers are around 26.1 cents/kWh for new customers and 34.7 cents/kWh for existing customers. This illustrates the significant difference between generation costs and end-customer prices.

Economical and sustainable: Why solar parks on open land are so convincing

With electricity generation costs of 4.1 to 6.9 cents per kilowatt-hour, ground-mounted photovoltaic systems have long since crossed the threshold of economic viability. They not only represent the most cost-effective form of electricity generation but also offer attractive investment opportunities with manageable amortization periods. The combination of low generation costs, long-term rising market prices for electricity, and various marketing options makes ground-mounted systems an economically sound investment – ​​both for professional project developers and for municipalities and agricultural businesses with the necessary land resources.

Photovoltaic open-field systems: Performance potential example on 4-5 hectares

For the planning of ground-mounted photovoltaic systems, area efficiency is a key parameter. Depending on the technical configuration and site conditions, an average installed capacity of 3.6 to 7 MW can be achieved on an area of ​​4 to 5 hectares. This range results from the following factors:

Area performance ratio

Modern open-field solar power plants now achieve 0.9–1.4 MW per hectare. This value depends on:

• Modular technology: High-performance modules with efficiencies exceeding 22% reduce the space requirement.
• Mounting system: East-west orientation or tracking systems increase the area utilization by up to 25%.
• Row spacing: Larger distances between module rows (to minimize shading) reduce the power density, but at the same time enable agri-PV use.

Area and output: Depending on the technology and settings used, between 0.9 and 1.4 megawatts of power can be generated per hectare of land (which is about the size of one and a half football fields) using solar power.

What influences the yield per hectare:

• Solar panel technology: More efficient solar panels require less space.
• Arrangement of solar modules: Special orientations or systems that track the sun ensure that more electricity can be generated.
• Spacing between the module rows: If the solar panels are further apart, less electricity is generated per area, but the area can potentially be used for other purposes, e.g. for agriculture (Agri-PV).

Example calculation:

• If you use 4 hectares of land and assume that you generate an average of 1.1 megawatts per hectare, this results in a total of 4.4 megawatts.
• If conditions are optimal and 1.4 megawatts per hectare can be achieved, 7 megawatts could be generated on 5 hectares.

For 4 hectares under standard conditions:

• Power output = Area (in ha) × Power output per hectare (in MW/ha)
  ↪ Power output = 4 ha x 1.1 MW/ha = 4.4 MW

For 5 hectares under optimal conditions:

• Power output = Area (in ha) × Power output per hectare (in MW/ha)
  ↪ Power output = 5 ha x 1.4 MW/ha = 7 MW

In short: Greater efficiency and better technology = more electricity on the same area. Four hectares can generate approximately 4.4 MW – or even more under ideal conditions.

Practical examples and limitations

• A typical 5 MW plant requires approximately 4.5 hectares when using standardized mounting structures.
• In North Rhine-Westphalia, 2023 plants with a capacity of 1.35 MW/ha were implemented by combining bifacial modules and optimized row spacing.
• Grid connection capacities often act as a limiting factor: A 7 MW plant requires a 20 kV medium voltage connection, the availability of which must be checked in advance.

Economic framework conditions

Current investment costs are €600–900/kWp, which translates to €3–4.5 million for a 5 MW system. With 950–1,100 full-load hours per year in Germany, this results in an annual yield of:

5 MW x 1,050 h = 5,250 MWh

At an electricity price of 6.8 ct/kWh (EEG tender value 2025), this generates annual revenues of €357,000, which allows for an amortization period of 9–12 years.

Future potential

With the introduction of tandem PV modules (efficiency >30%), the power density could increase to 2 MW/ha by 2030, making up to 10 MW achievable on 5 hectares.

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