15_Economics - Economics $ ELEG620: Solar Electric Systems...

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ELEG620: Solar Electric Systems University of Delaware, ECE Spring 2009 S. Bremner Economics ₤€ $
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ELEG620: Solar Electric Systems University of Delaware, ECE Spring 2009 S. Bremner Economics Economics issues are a major factor, but do not necessarily give an exact answer; economics often considered in terms of social priorities Difficult to do economic comparison accurately due to differences in time frames and assumptions A key issue in economic analysis of power systems is that the value of money is not constant over time Intrinsic value of money is not constant over time shown by inflation Spending money has a cost associated with it Cost of borrowing money, given by interest rate Opportunity cost of spending money, given by discount rate
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ELEG620: Solar Electric Systems University of Delaware, ECE Spring 2009 S. Bremner Costs
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ELEG620: Solar Electric Systems University of Delaware, ECE Spring 2009 S. Bremner Cost of PV Units of cost $/W • Module cost normally quoted as $/W p (peak watt). This means the cost of the module divided by the amount of power it produces under standard AM1.5 conditions • The $/W figure is a number for comparing various solar cell technologies but should not be used directly in determining the useful power produced by a PV system • If the efficiencies of the two technologies being compared are radically different, a $/W figure doesn’t accurately reflect the true cost of electricity from two types of solar cells – use the cost of electricity • For technologies with similar efficiencies, the lower $/W figure makes a technology more desirable, efficiency must be kept above a certain level though
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ELEG620: Solar Electric Systems University of Delaware, ECE Spring 2009 S. Bremner Cost of PV $/m 2 cost Another way of measuring cost is $/m 2 . It is useful when looking at the various other materials components costs of a PV module which depend on area rather than the power produced Conversion from $/W to $/m 2 : For two technologies with identical $/W cost, the higher the higher efficiency module will have the higher $/m 2 cost and hence is more desirable For technologies with different efficiencies knowing only the $/m 2 is not enough to effectively compare them Higher efficiency technologies typically have much higher $/m 2 figures than lower efficiency, lower cost technologies
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ELEG620: Solar Electric Systems University of Delaware, ECE Spring 2009 S. Bremner Cost of Electricity Cost of Electricity (COE) Both $/W p and $/m2 only take into account the cost of PV, not other components and system costs Cost of electricity ($/kWhr) takes into account many other factors in a PV system COE is used to compare one type of electricity generating system to another when the same set of assumptions has gone into each cost analysis In practical terms, this means that one can only compare COE when the figures are produced by the same author and only ‘ball park’ figure
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This note was uploaded on 12/14/2011 for the course ELEG 620 taught by Professor Honsberg,c during the Fall '08 term at University of Delaware.

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15_Economics - Economics $ ELEG620: Solar Electric Systems...

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