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The Levelized Cost of Energy for Distributed PV: A Parametric Study « Energy Security « Downloads

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Date postedNovember 26, 2012
Downloaded296 times
CategoriesEnergy Security, ECIS, Fact Sheet, Renewable Energy, Solar Energy, Photovoltaic

Description

The maturation of distributed solar PV as an energy
source requires that the technology no longer compete on
module efficiency and manufacturing cost ($/Wp) alone.
Solar PV must yield sufficient energy (kWh) at a
competitive cost (¢/kWh) to justify its system investment
and ongoing maintenance costs. These metrics vary as a
function of system design and interactions between
parameters, such as efficiency and area-related installation
costs. The calculation of levelized cost of energy
includes energy production and costs throughout the life of
the system. The life of the system and its components,
the rate at which performance degrades, and operation
and maintenance requirements all affect the cost of
energy. Cost of energy is also affected by project
financing and incentives. In this paper, the impact of
changes in parameters such as efficiency and in
assumptions about operating and maintenance costs,
degradation rate and system life, system design, and
financing will be examined in the context of levelized cost
of energy.

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