PV Systems - Applications and Design Economics of PV Systems Week - PowerPoint PPT Presentation

PV Systems - Applications and Design Economics of PV Systems Week 8.3 Arno Smets, Nishant Narayan

Payback period Investment cost Returns Investment cost Payback period = Returns/year

Example – Payback period Installation 4000 € 1 kW p Consumption 2000 € /year PV electricity 800 € /year

Example – Payback period 8,000 Investment Costs ( € ) 4,000 Returns 800 € /year 0 5 years 0 2 4 6 8 10 Time (years)

Insolation PV system cost Electricity cost

Feed-in tariff Gross feed-in tariff Net feed-in tariff

Levelized cost of electricity (LCOE) 300 EstimatedLCOE ($/MWh) 250 200 150 Transmision Investment Variable O&M 100 Levelized Capital Cost 50 Fixed O&M 0 Source: Energy Information Administration

Levelized cost of electricity (LCOE) N A   t I A t = Total annual cost in year t   0  t 1 i  t 1  I 0 = Initial investment LCOE N  E E t = Annual energy yield t    t 1 i  r = Discount rate 1 t

Grid parity

Grid parity Grid parity Typical sites when lines cross Solar Power Prices Best sites Latest Earliest Grid power prices Wholesale Volume of PV systems installed Source: Practical Handbook of Photovoltaics

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