When this occurs, solar PV output actually needs to be curtailed — prevented from entering the grid — in order to maintain the balance between supply and demand. Although some curtailment is unavoidable, it jeopardizes solar energy's financial viability at higher levels.
The problem is twofold. During peak energy demand periods, there can often be an undersupply of solar energy due to a low or non-existent solar energy supply, requiring alternative, mainly non-renewable, energy sources to be utilized to meet the demand.
This rapid increase in solar deployment can be attributed to several different causes. Private and public research and development efforts have significantly increased the efficiency of solar PV modules as well as their manufacturing processes.
In China, the variability of solar PV is one of the factors that leads to an oversupply of solar in the country's northwestern provinces, where a limited population often has a low demand for energy despite the region's high solar energy production.
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