ERU Lab Presentation

Cost analysis of photovoltaic cell:

Comparison and analysis of photovoltaic cell with main powers (WAPDA supply).
1. Comparison of photovoltaic cell with other commonly used sources for
electricity.
2.

Calculation of initial installation cost.

3. Comparison of price/watt.

Photovoltaic cell as a source of Green Energy:

Photovoltaic cells are source of green energy.

There is no CO2 emission so no global warming and greenhouse effect.

No moving parts and noise pollution.

Occupies a lot of space.

Uses lead acid batteries for providing electricity in night.

99% of lead is recyclable.

Long-term exposure to even tiny amounts of lead compounds can cause brain
and kidney damage, hearing impairment, and learning problems in children.

Calculation of initial installation cost:

The total installed cost of PV systems can vary widely within individual countries,
and between countries and regions. These variations reflect the maturity of
domestic markets, local labour and manufacturing costs, incentive levels and
structures, and a range of other factors. At an average of USD 3.8/W for c-Si
systems, Germany has the lowest PV system costs in the small-scale residential
market (<5 kW). In comparison, the average installed cost in 2011 in Italy, Spain,
Portugal and the United States was between USD_5.7 to USD_5.8/W.

Despite the impressive declines in PV system costs, the levelised cost of electricity
(LCOE) of PV remains high. The LCOE of residential systems without storage
assuming a 10 % cost of capital was in the range USD 0.25 and USD 0.65/kWh in
2011. When electricity storage is added, the cost range increases to USD 0.36 and
USD 0.71/kWh. The LCOE of current utility-scale thin-film PV systems was estimated
to be between USD 0.26 and USD 0.59/kWh in 2011 for thin-film systems.
The three indicators that have been selected are:
Equipment cost (factory gate FOB and delivered at site CIF);
Total installed project cost, including fixed financing costs2; and
The levelised cost of electricity.

Capital cost of a PV system:

PV module cost.
The Balance of system (BOS) cost.

Balance of system (BOS) cost:

The BOS cost includes items, such as the cost of the structural system (e.g.
structural installation,
racks, site preparation and other attachments), the electrical system costs (e.g. the
inverter, transformer, wiring and other electrical installation costs) and the battery
or other storage system cost in the case of off-grid applications.
The BOS costs largely depend on the nature of the installation. For utility-scale
PV plants, it can be as low as 20% (for a simple grid connected system) or as high
as 70% (for an off-grid system), with 40% being representative of a standard utilityscale ground-mounted system.

PV module cost:
The PV module cost is typically between a third and a half of the total capital cost of
a PV system, depending on the size of the project and the type of PV module.
The absolute cost and structure of PV modules varies by technology. Conventional cSi PV modules are the most expensive PV technology, with the exception of CPV
modules, but they also have the highest commercial efficiency. However, CIGS
modules are approaching the efficiency levels of c-Si modules and are cheaper.

Costs of residential PV Systems

In Germany in 2011, the price of a residential PV system with a capacity of

between 2 kW and 5 kW averaged USD 3 777/kW, including installation.

In Italy, Portugal and Spain, the price of the equivalent PV system is USD 5
787/kW on average.

In the United States the price is USD 5 657/kW

Costs of Larger PV Systems

Larger PV systems with a capacity of between 5 kW and 10 kW in Germany

cost USD 3 600/kW on average, including installation in 2011.

In the other countries, such as Italy and Portugal, the average price is USD 5
314/kW.

In the United States, the average price for these systems is USD 5 433/kW

Comparison of price/watt:
The timeline for the price/watt for the photovoltaic cell is given below:

The decrease in price for unit watt is due to advancement in technology hence
efficiency of the photovoltaic cell and the increase in no. of photovoltaic cell

production industries.

At the beginning of 2012, thin-film module prices (factory gate or spot) had fallen
below USD_1/watt (W), with prices between USD_0.84 and USD_0.93/W available.
The prices of crystalline silicon (c-Si) modules are more varied, but were typically in
the range USD_1.02 to USD_1.24/W for the most competitive markets. PV module
costs have a learning rate of 22%, implying that costs will decline by just over a fifth
with every doubling of capacity. Continued rapid cost reductions are likely due to
the rapid growth in deployment, given that cumulative installed capacity grew by
71% in 2011 alone.

Levelised cost of electricity from solar PV:

PV systems, like most renewable power generation technologies, are capital
intensive, but have no fuel costs.
The three key drivers of the LCOE of PV systems are:

The capital and the installation costs of PV modules and BOS (USD/W);
The average annual electricity yield (kWh per kW), a function of the local
solar radiation and the solar cells technical performance; and
The cost of finance for the PV system.

When the LCOE of a PV system is the same or less than residential electricity tariff,
then the PV electricity is economically competitive for residential users.
Competitiveness has been already achieved in some countries where the electricity
retail price is particularly high and solar irradiation and climate are particularly
favourable to the PV electricity generation (e.g. some Southern European countries).
With PV system costs continuously declining, PV will become economically
attractive for residential and many commercial sector consumers in many countries.
Some projections suggest that PV systems will be economic without support for
residential consumers in most countries by 2020 and that the cost of PV electricity
will continue declining steadily toward a full competitiveness with conventional
electricity generation options.

The International Energy Agency (IEA) in its PV Technology Roadmap (IEA, 2010)
projects that:
Over the current decade, continued government support will enable the LCOE of
PV to decline sufficiently to compete with retail electricity prices in a growing
number of countries.
In 2020, the LCOE of PV systems will range between USD 0.105 and USD
0.21/kWh for large, utility-scale plants, and between USD 0.16 and USD 0.315/kWh
for residential PV systems.

The formula used for calculating the LCOE of renewableenergy technologies is:

Where:
LCOE = the average lifetime levelised cost of electricity generation;
It = investment expenditures in the year t;
Mt = operations and maintenance expenditures in the year t;

Ft = fuel expenditures in the year t;

Et = electricity generation in the year t;
r = discount rate; and
n = economic life of the system.

Calculation of price/watt for main powers (WAPDA) and

photovoltaic cells.
Example: Lets consider a room e.g. RAC lab and calculate its electrical load and
compare its cost of electricity to the cost electricity provided by WAPDA.

Step 1: Identify electric equipment present in the lab.

Load

of RAC Lab
6 fluorescent tube light.
6 ceiling fans.
4 air conditioning equipment for experiments.

Step 2: Calculate load of each item and total load.

type
fluorescent tube light
ceiling fan
Lab equipment

power consumption by 1
item
40 Watts
90Watts
1000 watts

no. of items
6
6
4
Total power

total power
consumptio
240
540
4000
4780 watts
kWatts

Step 3: Calculate working hours in month excluding holidays and power in kWh
(units).
Working hours = 1.5 (7:30 - 4:15, 45
mins break)
Working days in week = 5 (Mon - Fri)
Working days in month = 22
Working hours in month = 22 X 1.5 =
33
1 unit = 1 kWh
Total power in kWh = 165
Total units = 165

Step 4: Calculate electric bill.

Price of 1st 100 units = 8 PKR
Price of next 100 units = 13 PKR
Total bill = 100*8 + 65*13 = 1645
PKR

Step 4: Calculate the cost/watt.

PKR/Watt = 1645/165*1000*3600 = 0.0000028
Cost/Watt for WAPDA supply is PKR/W 0.0000028
Cost/Watt for PV cells is PKR/W 30

Conclusion:

The energy from PV cells is very expensive as compared to other sources.

PV cells require a lot of money for initial installation.