Retail electricity prices for a commercial electricity consumer can be complex, combining diverse charges such as energy and capacity costs. The GPM only considers the costs associated to energy consumption (generally, this equates to the energy charge) to compare against the LCOE, but the reader must bear in mind that if self-consumption results in a change on the consumption pattern of the user, the additional avoided costs (e.g. capacity costs) should also be accounted for.
The results of the analysis show that the main driver of PV grid parity is the decrease in PV system prices, one of the main parameters that determine the LCOE.