In its latest report, The World Market for Concentrated PV (CPV) 2012, the U.K.-based research company finds that CPV costs will reduce annually by 16% on average until 2016. Additionally, technological advancements from companies including Solar Junction and Amonix will help boost the technologys attractiveness.
"With companies such as Solar Junction breaking cell efficiency records and Amonix capable of producing 34.2 percent efficient commercial modules, and focused on driving down system prices, acceptance of CPV as a utility-scale generation method is predicted to accelerate," says report co-author and IMS Research analyst Jemma Davies.
Overall, upfront systems costs are expected to remain higher for CPV than photovoltaics. However, the levelized cost of electricity (LCOE) is expected to "fall considerably" in target regions for CPV systems.
"It is important to focus less on up-front module prices and more on LCOE and what it means for the PV market. If a CPV system is capable of producing more electricity at a lower cost over its lifetime, surely it should be a viable option for a PV installation," continues report co-author and IMS Research analyst Sam Wilkinson.
Currently, just 90 MW of CPV are installed globally today. This figure is predicted to increase to nearly 1.2 GW by 2016, however.