Lowering the cost of finance could lead to dramatic reductions in the levelised cost of energy (LCOE) of solar, according to LONGi Solar.
Speaking to PV Tech, VP of overseas marketing at LONGi, Max Xia said the entire value chain had work to do to trim down the LCOE but the most substantial gains could be achieved by slashing interest rates.
“The final important piece of the puzzle is reducing the cost of finance,” said Xia. “We need support from development banks. If we could drive down interest rates from 8% to 1% or 2% we believe the LCOE could fall by as much as 50%. The Chinese government is looking to do more work on reducing the financial costs of LCOE as well as grid costs and land costs.”