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.