3. Building Integrated Photovoltaics (BIPV) and Why they Matter

Main takeaways:

• Solar PV is notable not only for its cost reduction but also for its versatility
• BIPV combines these two aspects, with a product that’s embedded in roof tiles or glass facades at a low incremental cost
• This transforms PV into a component of an aspirational branded product where aesthetics, not cost, is the key criterion for its purchase

The costs of Solar PV have been falling sharply (see link). But in addition, one of the unique features of Solar PV is its versatility.

So far, most PV panels have either been mounted on the ground or on roofs. One of the innovative approaches is however to embed PV into a building, so that the roof tiles or the glass facades have PV sheets integrated into them. This requires new technologies for PV films, new deposition techniques, and advances in micro-inverter technologies. In some cases, the inverters can be dispensed with. PV panels can be embedded into DC circuits that combine electricity and information flow.

The traditional PV business model is a pure cost-driven model, with costs measured in $/MWh (Dollars per megawatt-hour). BIPV upends this business model in two ways. Firstly, the cost here associated with PV is simply the incremental cost of embedding PV into a building product such as a glass fa?ade or a roof tile, i.e. in $/m2 and not $/MWh. More importantly, PV is transformed as part of an aspirational branded product where cost is not the sole criterion for its purchase. The primary criterion is likely to be its aesthetics.

BIPV products are still being improved, with higher efficiency, greater transparency and better visual appeal. They have the potential to be a lot cheaper than even the cheapest conventional ground or roof mounted PV available today. And when attractive aesthetics in a very high volume product are coupled with a competitive price offering, it translates into a very scalable business proposition.

Further, let’s imagine a scenario where a cheap form of Solar PV can disrupt power generation business models and unleash a world of very cheap electricity. If this happens, it could perhaps help solve a crisis that is far more imminent than even climate change. I’m referring to a world of coming water shortages where ground water reserves are being depleted, river water is increasingly too polluted for consumption, and the resulting societal pressures are multiplying the risk of conflict in some of the most vulnerable parts of the world. More on this in my next article.