The Business Case for PV

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The Business Case for PV
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Representative Current PVSystem Costs Grid
Connected - No Batteries(/Watt DC)
Item Module Hardware Inverter Install
Total
Retail High 6.10 (a) 1.00 .75 1.75 9.60
Retail Low 4.30 (b) 1.75 .75 2.40 9.20
Wholesale 3.50 (b) 1.40
.50
2.40 7.80
(a) Crystalline Si (b) Thin film
a-Si Based on typical small system (0 catalog prices
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Total Installed PV System Costs

Representative Examples
Residential Range 9.00
- 12.00 per Watt or
9,000 - 12,000 per kW Example 2.0
kWDC system 18,000 - 24,000
Commercial Range 7.00
- 9.00 per Watt or 7,000 - 9,000 per kW
Example 100 kWDC system
100(9,000) 900,000
500 kWDC system
500(7,000) 3,500,000
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PV System and Energy Costs (/kWh)
Energy Cost (Cents/kWh)
System Cost
(/Watt AC) 10.50 8.50 6.00 4
.50
Phoenix, AZ (6.5 PSH) 0.26 0
.21
0.15 0.11
Sacramento, CA (5.5 PSH) 0.30
0.24 0.17
0.13
Spokane,WA (4.5 PSH) 0.35
0.29
0.20 0.15
Phoenix,AZ (Tracker) 0.20 0.17

0.13 0.10
PSH average annual peak solar hours from
NREL weather data fixed tilt at Lat
Single axis tracker increases generated energy
by 34.4 assume 1.00/W cost inc.
Data based on computer simulation
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Average Monthly Savings on Electric Bill
per kW of PVDC (/Month)
City Sun Electric Utility Costs per kWh
Hrs 0.08 0.10 0.12 0.14 0.16 0.18 0.20
Denver, CO 6.06 4.
53 13.59 16.31 19.03 21.74 24.46 27.78
Kansas City, 5.01 8.76 10.95 13.14 14.24 16.27
19.71 20.34 MO Miami, FL 5.18 8.86 11.07
13.28 15.50 17.71 19.93 22.14
Phoenix, AZ 6.63 11.50 14.37 17.24 20.12 22.99 2
5.87 28.74 San Francisco 5.76 8.03 12.81
15.37 17.93 20.50 23.06 25.62
CA Seattle, WA 3.97 6.82 8.52 10.22 11.93 1
3.63 15.34 17.04 Source Home Power Magaz
ine, April/May 2003, pg31.
NOTE Does not consider tiered or time of use
rate structure, which will greatly increase the
savings.
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PV System CostsSMUD Experience - 2000
Item Cost to SMUD (/watt approx) Cost to reta
il customer (/watt) Equiv. Energy cost (cents/kW
h)
Avg SMUD res rate (cents/kWh)
Cost 4.25 2.40 6.7 8-12
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PV and Tiered Utility Rates
PV currently competitive at peak and higher tiers
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Energy Cost (cents)
20
18
15
10
600
1,500
1,000
Energy (kWhrs)
Based on Tiered rates for PGE, Northern
California
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1.0 kW Residential System - Case Study


Source Internet Explorer Clean Power Estimator
www.clean-power.com/cec/default.asp
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1.0 kW Case Study - System Cost
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1.0 kW Case Study - System Cost (cont.)
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1.0 kW Case Study - Production
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1.0 kW Case Study - Economics
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1.0 kW Case Study - Economics (cont.)
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1.0 kW Case Study - Net Cash Flow
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5.0 kW Residential System - Case Study
Is More Better ?
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5.0 kW Case Study - Production
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5.0 kW Case Study - Monthly Economics
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5.0 kW Case Study - The Cash Flow Black Hole
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3.5 kW Case Study - Break Even
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3.5 kW Case Study - Break Even
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3.5 kW Case Study - Break Even
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