Summary
A photovoltaic power station, also known as a solar park, solar farm, or solar power plant, is a large-scale grid-connected photovoltaic power system (PV system) designed for the supply of merchant power. They are different from most building-mounted and other decentralized solar power because they supply power at the utility level, rather than to a local user or users. Utility-scale solar is sometimes used to describe this type of project. This approach differs from concentrated solar power, the other major large-scale solar generation technology, which uses heat to drive a variety of conventional generator systems. Both approaches have their own advantages and disadvantages, but to date, for a variety of reasons, photovoltaic technology has seen much wider use. , about 97% of utility-scale solar power capacity was PV. In some countries, the nameplate capacity of photovoltaic power stations is rated in megawatt-peak (MWp), which refers to the solar array's theoretical maximum DC power output. In other countries, the manufacturer states the surface and the efficiency. However, Canada, Japan, Spain, and the United States often specify using the converted lower nominal power output in MWAC, a measure more directly comparable to other forms of power generation. Most solar parks are developed at a scale of at least 1 MWp. As of 2018, the world's largest operating photovoltaic power stations surpassed 1 gigawatt. At the end of 2019, about 9,000 solar farms were larger than 4 MWAC (utility scale), with a combined capacity of over 220 GWAC. Most of the existing large-scale photovoltaic power stations are owned and operated by independent power producers, but the involvement of community and utility-owned projects is increasing. Previously, almost all were supported at least in part by regulatory incentives such as feed-in tariffs or tax credits, but as levelized costs fell significantly in the 2010s and grid parity has been reached in most markets, external incentives are usually not needed.
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A power purchase agreement (PPA), or electricity power agreement, is a long-term contract between an electricity generator and a customer, usually a utility, government or company. PPAs may last anywhere between 5 and 20 years, during which time the power purchaser buys energy at a pre-negotiated price. Such agreements play a key role in the financing of independently owned (i.e. not owned by a utility) electricity generators, especially producers of renewable energy like solar farms or wind farms.
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A photovoltaic system, also PV system or solar power system, is an electric power system designed to supply usable solar power by means of photovoltaics. It consists of an arrangement of several components, including solar panels to absorb and convert sunlight into electricity, a solar inverter to convert the output from direct to alternating current, as well as mounting, cabling, and other electrical accessories to set up a working system. It may also use a solar tracking system to improve the system's overall performance and include an integrated battery.
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