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| Cost issues | ||
| Although the costs of photovoltaic modules are higher than the $3/watt needed to make widespread commercial use viable, they continue to decline as technology advances. A large-scale (> 70 kW) installation study conducted by the Solar Power Electric Association concluded that the cost of large-scale systems had decreased by at least 35% between 1996 and 1999. Initial costs for a residential single-family home for a photovoltaic system are estimated between $15,000-25,000, while access to an existing power grid can cost up to $26,000 per quarter mile (Wilson, www.fsec). The most efficient use of photovoltaics continues to be in remote locations where initial installation savings outweigh other financial considerations. | ||
| Cost is an important factor when
considering the purchase of any product. However, determining the
cost of a PV system is often more complex than simply purchasing a
piece of hardware at a published price. In addition to the actual
equipment or capital cost, there are labor and other expenses associated
with installing PV equipment. The cost of electricity produced by
the system should be estimated and compared to the current price for
electricity from the power utility in a given municipality. Equipment costs are usually quoted in terms of their cost per kilowatt of electricity produced, or $/kW. PV systems generally have high capital costs, a main factor in their lack of widespread implementation. However, as production levels and sales increase, it is expected that equipment costs will decrease. |
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All the various types of PV systems entail both advantages and disadvantages. Crystalline solar panels are generally more efficient, so they occupy less area per kilowatt, an important consideration where space is an issue. Single-crystalline cells are more efficient and more expensive than semi-crystalline cells because a longer production process is involved. Thin film cells generally attain lower efficiencies than both types of crystalline cells, but as the production process is considerably less expensive, they are usually cheaper to purchase. Many thin film cells have no glass in them and are nearly unbreakable, which may be a factor depending on location. They can also be extremely light and flexible, and therefore are appropriate for a variety of situations where crystalline solar cells are too heavy or rigid. Thin film panels also lose less power in high temperature areas such as the desert Southwest. Solar panels range in size from 5 to more than 160 watts. Voltages are generally 12 or 24, but can be customized for specific energy needs. All the above variables play a role in the cost of the system. |
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Total Cost of a PV System: |
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| Reasons to buy a PV system | ||
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