Economical feasibility of large-scale solar energy collection
Results and Discussion
Table 1, (Appendix) displays middle ground estimation of PV and cost production for the 10kW system of PV in dollars. The data can be a representation of large system of residential or a minute commercial system. The required calculations were scaled down and up having a number of adjustments for the scale of economies that are linked to the larger systems installation. In this regard, the basic costs include installation, inverters replacement. The costs are observed to have a decreasing trend, and they flatten temporarily. For instance, $80,000 figure installation is a representation considered being fair, and optimistic. In this case, a typical system of residential would have $8 in every watt. There is a possibility of declining costs with time.
The key issues that are linked to the analysis of cost include the panel’s lifetime and the required, discount rate for the project evaluation. Different types of panels normally have warranties that are limited for a minimal of 20 years or longer (Nemet 6) The data presented assumed a 25 year calculation of lifetime. Such a timeframe leads to the extending of life to about 30 years ad the cost of every kWh would be smaller as a result of discounting. Table identifies a range of actual interest rates. A number of industries have suggested that a high rate is extremely reflective of the different rates of interest that are normally faced by a variety of buyers. The values are always higher than the social discount real rate for which an individual could apply to the analysis of the public policy. In this respect, an interest that is lower could be the most relevant. In table 1, the given low rates of interest rates are relatively lower hence appropriate in the evaluation of the rate of the social discount, and the two high ones are relevant on evaluating the opportunity of the market capital cost.
The results displayed also show out that, after installation, the high cost that the PV solar system owner would face involves replacing the inverter (Barbose, Darghouth and Wiser 3). A research conducted in this field reported that the mean time to time failure estimation in inverters is approximately 10 years. Assuming an approximation of 8 years means that such an inverter will require replacement at least two times within the duration of 25 years life panel. This replacement, according to the results in table1 would occur in the 8th and the 16th year. The cost for an inverter having the 10kW system has a range of $8000, which has a huge possibility of declining with time. Additionally, the costs of inverters are considered to decline in intervals of 2% each year in actual terms that are consistent with the Navigant consulting study for energy renewal. The displayed discounts and costs are normally combined to give out a present cost for the PV system. Additionally, table 1 displays the data for simultaneous cases, including the price cap Psim, ad the PsimH, which is high volatility of price (LBBW 4). The highest and lowest valuation are displayed in the results that are simultaneous. The PsimL results are always in the range that is displayed. The ISO prices results having no augmentation for when the binding price caps occurred are similar to the PsimH values (Barbose Darghouth and Wiser, 6).
Other different studies conducted on the PV production in a lifetime panel reported two TRNSYS simulation adjustments behind table 1, whenever the evaluation of the solar production of the PV is for a life time. The aging effect is considered being one of the factors affecting the production of the PV solar. In this case, the PV production reduces in a given time having the best estimation ranging from 1% of the original potential per year. Soil effect is another factor that affects the PV cell production. The panels are known to absorb minimal solar radiation hence give out minimal electricity. The effect of soil on, the PV cells, relies on the idiosyncratic factors like the density and the amount of rainfall and on endogenous traits like the effort of maintenance. The data presented in table 1 displays the effect of aging but not for the soiling.
The production of electricity from the PV solar is not equal to the equal production in the current world. Whenever the electricity real cost remained constant, the real interest rate that is positive would cause electricity production failure with low present value. Increasing the electricity cost for a given time would increase the present production.
Obtaining the knowledge of the reducing trend of the solar PV costs is vital in the formulation of the policy due to the irreversible durable nature of that specific investment. Whenever the costs of the PV reduce rapidly due to reasons like the policy of subsidy, the investment delay would be observed in many companies. If the decline is only 2015 in every year, there would be an increased amount of renewable energy (Mints 5). Table 2 (appendix) present the translated figures of table 1 for the benefits and costs that are leveled. At a three percent real annual interest, column 2 shows out the net cost of the PV solar installation that is similar to the purchase of the MWh for the panels life at a real price that is constant
A deep analysis of the non market and market traits are key in understanding the benefits and costs for the PV solar power. From this study, a method used in analyzing the value of the market for the PV solar power was displayed. The presented method produced a minimal amount of outputs whenever the weather was sunny, and the demand of the system was relatively high. The application of this method suggested that account for the electricity production that is time varying in the solar panel may increase the output value substantially. The utility of the real-time prices allows the alteration of value from 0% to 20%. Using the simulated model prices will make sure that the peak capacity of the gas takes care of the fixed costs through the increased prices of energy, which makes the real time values to increase (Bloomberg 6). In a wholesaler market of electricity, the simulation is normally substantially low in volatility. This study took into consideration the time-varying savings for the lie losses especially when the production of the power is on a larger site. The study, however, fails to account for the potential savings from a reduced requirement of distribution and transmission capacity. A different analysis of such factors would indicate their possibility of amounting to percentage PV solar valuation points that are higher than two.
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