LCOE Breakdown of N-Type vs P-Type:
When solar projects are evaluated, most discussions stop at module price. But Levelized Cost Of Energy (LCOE) is not decided on day one. It is decided over the lifetime of solar modules. The longer the solar modules keep generating energy as expected or better than expectations, the faster would-be Return on Investment (ROI) and lowest would the LCOE.
At first glance, P-Type looks cheaper. Typical module costs still sits lower than N-Type and on larger projects, it feels significant. However, CAPEX is only half the story.
Generation over time is where the equation shifts. P-Type modules suffer from an early degradation of 1–3% loss due to light-induced degradation, while N-Type modules largely avoid this.
Then comes the annual degradation. P-Type typically degrades around 0.6–0.8% per year, while N-Type stays closer to 0.3–0.5%. These numbers look small. But they compound, and for larger projects, they multiply.
Over 25 years, with first year and subsequent year annual degradation, N-Type modules retain close to 88–92% of their initial rated power while P-Type would drop to 84–86%. The gap directly converts into energy. And, we all know energy generation is actual revenue. In utility-scale terms, this difference can translate into millions in additional generation.
This is where LCOE quietly shifts. Even with a slightly higher upfront cost, N-Type delivers 5–7% more lifetime energy. That alone can reduce LCOE by 3–5% in real projects.
There is also a hidden factor. Negative Temperature performance. N-Type modules lose less efficiency in higher temperatures, which matters the most in markets like India, having higher ambient temperatures.
So, when does N-Type truly win?
It doesn’t win at purchase, but over time, when your panels generate energy for years
As we learned, the degradation curve starts to tilt the economics towards N-type.
In short, LCOE is not about the cheapest panel. It is about the cheapest energy over time. This is where N-Type quietly takes the lead.
