Aerial view of solar farm

Solar Photovoltaics

Updated: March 2026

Technologies, efficiencies and market developments

Photo: Andreas Gücklhorn / Unsplash

1 How it works

The photovoltaic effect

The photovoltaic effect is the direct conversion of light into electricity at the atomic level. Discovered by Edmond Becquerel in 1839, it relies on semiconductor properties.

1

Photons strike the cell and transfer their energy to silicon electrons

2

The P-N junction creates an electric field that separates charges

3

Direct current (DC) is collected and converted to alternating current (AC) by the inverter

Technician installing solar photovoltaic panels

Photo: Unsplash

System components

Solar panel installation with building in background

Photo: Unsplash

PV Modules

Light to DC electricity conversion

Inverter (Inverter)

Conversion DC → AC + MPPT

Meter / Monitoring

Measurement of production and grid injection

2 Cell technologies

Dominant ~95% market share

Monocrystalline (mono-Si)

Pure silicon with single crystal structure. Uniform black cells.

Cell efficiency 22-24%
Module efficiency 20-22%
Lifespan 25-30 years
Degradation 0.3-0.5%/year

✓ Best surface efficiency

✓ High performance in low light

Current standard

PERC / PERC+

Passivated Emitter and Rear Cell. Rear reflective layer.

Cell efficiency 23-24%
Module efficiency 21-22%
Gain vs standard +1-2%
Market share ~70%

✓ Excellent value for money

✓ Mature and reliable technology

Next generation

TOPCon

Tunnel Oxide Passivated Contact. Contacts passivated by tunnel oxide.

Cell efficiency 25-26%
Module efficiency 22-23%
Temp. coefficient -0.30%/°C
Bifaciality 80-85%

✓ Better thermal performance

✓ Ideal for bifacial

Premium

HJT (Heterojunction)

Heterojunction Technology. Amorphous silicon layers on crystalline silicon.

Cell efficiency 26-27%
Module efficiency 23-24%
Temp. coefficient -0.26%/°C
Bifaciality 90-95%

✓ Efficiency record

✓ Excellent bifaciality

✗ Higher cost

Strong trend

Bifacial Modules

Capture light from both sides. Gain via ground reflection (albedo).

Gain bifacial 5-30%
Grass albedo ~20%
Sand/concrete albedo 30-40%
Snow albedo 80-90%

✓ Significant extra production

✓ Ideal for utility-scale and trackers

R&D / Future

Perovskites

ABX₃ crystalline materials. Promising in tandem with silicon.

Lab efficiency 26% (single)
Tandem Si-Perov 33%+ (lab)
Commercialization 2027-2030
Main challenge Stability

✓ Potential efficiency >30%

✓ Low manufacturing cost

✗ Durability yet to be proven

3 Technology comparison

Technology Efficiency Temp. Coeff. Price (€/Wp) Bifaciality Maturity
PERC Mono 21-22% -0.35%/°C 0.15-0.20 70% Mature
TOPCon 22-23% -0.30%/°C 0.18-0.25 85% Growing
HJT 23-24% -0.26%/°C 0.25-0.35 92% Premium
Tandem Perovskite 28-33% TBD TBD N/A R&D

* Indicative utility-scale module prices, Q1 2025. Source: PV InfoLink, BNEF

4 Trends & Innovations

Agricultural field with sunlight

Agrivoltaics

Agriculture and PV synergy. Crop protection, dual income.

+40% projects in 2024
Lake with reflections

Floating Solar

Floating PV on lakes and reservoirs. Natural cooling, no land footprint.

6 GW installed worldwide
Modern building with glass facade

BIPV

Building Integrated PV. Solar tiles, facades, glazing.

€5Bn market by 2030
Rows of solar panels

Solar Trackers

Single/dual-axis sun tracking. +25-35% production gain.

Standard utility-scale

5 Agrivoltaics & Carports Strong growth

🌾

Agrivoltaics

Agriculture + solar energy synergy

Agrivoltaics combines agricultural production and electricity generation on the same plot. Panels protect crops (heat, hail, frost) while generating additional income for the farmer.

Installation types
Elevated panels (3-5m) - Agricultural machinery access
Vertical trackers - Between crop rows
Photovoltaic greenhouses - Semi-transparent rooftop
Livestock + PV - Grazing under panels (sheep)
France regulations (2024)
Agrivoltaics decree April 2024
Max coverage rate 40% of the plot
Max agricultural yield loss 10%
Mandatory agricultural benefit Yes (protection, water...)

+40%

Projects in 2024

3-5 GW

France potential 2030

💡 Key point: Agrivoltaics is not "disguised ground-mounted PV". The decree mandates a proven agricultural benefit (climate protection, reduced water stress, improved animal welfare).

🅿️

Parking Carports

Legal obligation + high profitability

Solar canopies cover outdoor parking lots. They generate electricity while protecting vehicles (sun, hail) and reducing heat islands.

⚠️ Legal obligation (APER Law 2023)
Parkings > 1 500 m² 50% covered by 2028
Parkings > 10 000 m² 50% covered by 2026
Parkings > 500 spaces (existing) 50% covered by 2028
Economic data
CAPEX 1 000 - 1 400 €/kWc
Extra cost vs ground +30-50% (structure)
Typical capacity 150-250 Wc/place
TRI projet 8-12%

11 GW

France potential

+IRVE

EV charging synergy

💡 Opportunity: Combining solar canopy + EV charging stations (IRVE) maximizes project value: direct self-consumption for EV charging, green image, and regulatory compliance.

Batteries and energy storage

Storage & Batteries

Technologies, economics and solar + storage hybridization

ESSENTIAL 2025

1 Why storage has become essential

Intermittence

Solar only produces during the day. Storage enables evening consumption.

Price arbitrage

Store when prices are low, sell when they are high.

Grid services

Primary reserve, frequency regulation, capacity = additional revenues.

Avoid curtailment

Store rather than lose production during peaks.

Key BESS (Battery Energy Storage System) market figures

-90%

Battery cost drop since 2010

Source : IRENA 2024

$117/kWh

BESS system cost (2025)

Source : BNEF 2025 (-31% vs 2024)

200 GWh

Global deployment 2024

375 GWh cumulative, record

$56-80/kWh

Target range

Source : RMI, NREL 2025

2 Battery technologies

Historical leader Li-ion NMC

Lithium-ion NMC

Nickel-Manganese-Cobalt. High energy density, losing ground to LFP for stationary storage.

Energy density 150-260 Wh/kg
Cycle life 1000-2500
Efficiency 90-95%
Cost ~$128/kWh (pack)

✓ High density, industrial maturity

✗ Cobalt (cost, ethics), thermal risk

Strong trend Li-ion LFP

Lithium Iron Phosphate (LFP)

Cobalt-free, safer and cheaper. ~70% of global BESS market.

Energy density 90-120 Wh/kg
Cycle life 3000-8000
Efficiency 92-96%
Cost ~$70/kWh (pack)

✓ Safety, longevity, cobalt-free, cost

✗ Lower density (larger footprint)

Emerging Na-ion

Sodium-ion (Na-ion)

Lithium-free alternative. Abundant and cheap materials. First EU utility-scale deployment (Germany, Sept 2025).

Energy density 120-160 Wh/kg
Cycle life 2000-4000
Efficiency 88-92%
Target cost ~$59/kWh (cell, 2025)

✓ Abundant materials, very low cost

✗ Lower density, maturity yet to prove

Long duration Redox-flow

Flow Batteries (Vanadium)

Long-duration storage (4-12h). Energy stored in liquid electrolytes. Independently scalable power/energy.

Discharge duration 4-12+ heures
Cycle life 15000-20000
Efficiency 70-80%
Lifespan 20-25 years

✓ Long duration, scalable, long lifespan

✗ Lower efficiency, larger footprint

Technology Density (Wh/kg) Cycles Efficiency Cost ($/kWh) Usage
Li-ion NMC 150-260 1000-2500 90-95% ~128 EV
LFP 90-120 3000-8000 92-96% ~70 Standard BESS
Na-ion 120-160 2000-4000 88-92% ~59 Emerging
Vanadium Flow 15-25 15000+ 70-80% 300-500 Long Duration

2025 costs. Sources: BNEF 2025, IRENA Technology Brief 2025, NREL ATB 2024.

3 Solar + Storage: new business models

Revenue Stacking

Combining multiple revenue streams to maximize hybrid system profitability:

1

Energy arbitrage

Buy/store during off-peak, sell during peak hours

30-50%
2

Primary reserve (FCR)

Grid frequency regulation, RTE contracts

20-30%
3

Capacity

Capacity mechanism, availability guarantee

15-25%
4

Peak shaving

Reduce subscribed power demand for industrials

10-20%

Hybrid configurations

AC-coupled

Battery connected on AC side via dedicated inverter. More flexible, allows retrofit on existing plants.

DC-coupled

Battery connected on DC side, shares PV inverter. More efficient (fewer conversions), lower cost.

Hybrid AC+DC

Combines both approaches. Optimal for large utility-scale projects. Maximum flexibility.

💡 Trend 2025

DC coupling is becoming the standard for new utility-scale PV+BESS projects.

LCOE of hybrid PV + Storage systems

PV only (utility-scale)

30-45 €/MWh

PV + Batterie (2-4h)

50-80 €/MWh

PV + Batterie (4h+) + Services

Competitive vs gas

Key point: With revenue stacking (arbitrage + FCR + capacity), hybrid projects achieve equity IRR of 10-15%, higher than PV alone.

Source: IRENA 2024, US hybrid projects: average LCOE $0.079/kWh (4.5 GW PV + 7.7 GWh storage)

4 Green hydrogen: long-duration storage

Principle

Green hydrogen is produced by water electrolysis using renewable electricity (solar, wind). It enables energy storage over long durations (days, weeks, seasons).

1. Solar production

Low-cost green electricity

2. Electrolysis

H₂O → H₂ + O₂ (efficiency 60-80%)

3. Storage / Transport

Compression, liquefaction, or conversion (ammonia)

Green hydrogen economics

Green H₂ cost 2024 4-7 €/kg
2030 target 2-3 €/kg
Grey H₂ parity ~1.5-2 €/kg
Electrolyzer cost 500-1000 €/kW

🎯 Key factor

Electricity cost represents 60-70% of H₂ cost. A low solar LCOE = competitive green H₂.

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