PV Costs

Abstract

How much do the components of PV systems cost, and can such systems ever be expected to compete with conventional sources of electricity? Typical electricity prices in the US are about 6–11 cents/ kWh. The cost of the plants making the electricity is closer to 3 cents/ kWh, but the projected cost of new conventional plants is in the 4–6 cents/kWh range. This is also the range expected for power from cogeneration, a stiff competitor for new electricity in a climate of deregulated utilities. Industry is often able to use cogeneration as a means of producing electricity because industry frequently uses high-pressure steam as a source of process heat. This same steam can also be run through a generator to make electricity. The simultaneous production of these two energies is where the name cogeneration comes from. So to be competitive, 4–6 cents/kWh is a good long-term goal for PV.