More Aluminium Alloy Cable Is Being Used to Replace Copper Cable in PV System for Palpable Advantages

Published: Mar 4, 2022 11:16
Control of PV (photovoltaic) system manufacturing costs is the key to achieve grid parity for PV. The cost of cables accounted for 10% of the system’s total cost.

SHANGHAI, Mar 4 (SMM) - Control of PV (photovoltaic) system manufacturing costs is the key to achieve grid parity for PV. The cost of cables accounted for 10% of the system’s total cost. And in the last two years, with the rise in the prices of copper and aluminium conductor materials, the cost of cables in the photovoltaic system has been rising instead of falling. As such, in order to ensure the normal operation of the system while maintaining safety, many companies use AA8030 series aluminium alloy as conductor for the production of new types of cable to replace part of the AC copper cable, which could greatly reduce the costs of cables.

Firstly, in terms of the most important production cost, copper material is 30% more expensive than aluminium alloy material in terms of direct procurement costs. The graph below shows the price comparison between YJLHV aluminium alloy cable and YJV copper cable (vertical axis is conductor area, horizontal axis is price) at the voltage of 0.6/1kV. It can be seen that the cost of aluminium alloy cable is about 25%-60% of copper cable, hence the cost advantage of aluminium alloy cable is quite obvious.


 

In terms of product design standards, when aluminium alloy cable’s conductor cross-sectional area is approximately 1.5 times that of copper cables after special treatment, the load capacity is comparable to that of copper cables. While the weight of aluminium alloy conductor is only 50% of that of copper under the same load capacity and length.

In terms of electricity losses, the difference in electricity loss between copper cable and aluminium alloy cable with a cross-sectional area enlarged by a factor of 1.5 is insignificant under the same running current.

When seen from other physical properties, aluminium alloy cable is superior in terms of flexibility, resilience, and elongation. Furthermore, aluminium alloy tau chemical cross-linked polyethylene cable has a service life longer than that of copper cable polyoxyethylene by 5-10 years.

Of course there are some natural disadvantages besides the absolute superiority of reducing costs. For example aluminium alloy cable is slightly inferior in terms of conductivity and safety performance. Copper cable is less resistive and presents better performance of electricity transmitting, while reducing the risk of heat generation, combustion and short circuits. Some aluminium material can achieve the same safety performance as copper cables by way of special aluminium alloy ratios and heat treatment processes, but not all aluminium alloy cables are comparable. In addition, the residual value of aluminium alloy cables is low and much lower than that of copper cables. In the long term, the development of aluminium alloy cable is contrary to the national environmental protection and low carbon targets.

To sum up, aluminium alloy cable and copper cable deliver similar performance concerning load capacity, electricity loss, etc., even aluminium alloy cable is even more outstanding in other parameters. In the premise of ensured quality, photovoltaic with aluminium alloy cable is the current trend.

Domestic leading cable enterprises are trying to manufacture aluminium alloy cable that can serve as an alternative to copper cable through generations of technical innovation in the field of not only photovoltaic production but also automotive and wind power. Nonetheless, most domestic cable companies still focus their businesses on copper, and it requires time for the new trend to develop and evolve.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn
For more information on how to access our research reports, please contact:service.en@smm.cn
Related News
"Rising Premiums on Secondary Copper Rod Boost Copper Cathode Demand Amid Supply Tightness"
1 hour ago
"Rising Premiums on Secondary Copper Rod Boost Copper Cathode Demand Amid Supply Tightness"
Read More
"Rising Premiums on Secondary Copper Rod Boost Copper Cathode Demand Amid Supply Tightness"
"Rising Premiums on Secondary Copper Rod Boost Copper Cathode Demand Amid Supply Tightness"
Since March 4, 2026, secondary copper rod has shifted to a premium of 200-400 yuan/mt against the most-traded futures contract. Meanwhile, the price difference between copper cathode rod and secondary copper rod narrowed sharply from around 1,200 yuan/mt to about 300 yuan/mt
1 hour ago
Rio Tinto Halts Kennecott Copper Mine Operations After Worker Fatality, Awaits Investigation
23 hours ago
Rio Tinto Halts Kennecott Copper Mine Operations After Worker Fatality, Awaits Investigation
Read More
Rio Tinto Halts Kennecott Copper Mine Operations After Worker Fatality, Awaits Investigation
Rio Tinto Halts Kennecott Copper Mine Operations After Worker Fatality, Awaits Investigation
Following a worker fatality on March 12, Rio Tinto suspended operations at its Kennecott copper mine in Utah, US. In a statement posted on its official website, Rio Tinto said that all surface and underground mining operations at Kennecott (also known as Bingham Canyon Mine) had been suspended. Chief Executive Officer Simon Trott said the company was working closely with the relevant authorities and contractor partners to support a full and thorough investigation.
23 hours ago
First Quantum to Sell Turkey's Çayeli Mine to Cengiz for $340M, Awaits Regulatory Approval
23 hours ago
First Quantum to Sell Turkey's Çayeli Mine to Cengiz for $340M, Awaits Regulatory Approval
Read More
First Quantum to Sell Turkey's Çayeli Mine to Cengiz for $340M, Awaits Regulatory Approval
First Quantum to Sell Turkey's Çayeli Mine to Cengiz for $340M, Awaits Regulatory Approval
Canada-based First Quantum Minerals will sell its Çayeli mine in Turkey to Cengiz Holding for $340 million in cash as part of its portfolio optimization strategy.Cengiz Holding will acquire the underground copper-zinc mine through its subsidiary CengizInsaat.First Quantum Chief Executive Officer Tristan Pascall said, "The sale reflects the company's disciplined approach to portfolio management while focusing on its core strategic priorities."The transaction remains subject to regulatory approvals and is expected to be completed in Q2 or Q3 of this year.
23 hours ago
More Aluminium Alloy Cable Is Being Used to Replace Copper Cable in PV System for Palpable Advantages - Shanghai Metals Market (SMM)