Solar PV: Where we are at today and the alternatives. A cost benefit

analysis of grid-tied renewable generation

By Michael Lawley

70% Off Grid: 30% On Grid

• Off grid – 3.1kW • On Grid – 3.7kW

Solar PV retail pricesSource: EcoInnovation sales invoices

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NZ Retail Prices

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il +

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Approximate installed price breakdown 2012 $NZ• Solar PV panels $1.5/W• Labour $1.0/W• Tracking $0.25c/W• Inverter $0.75c/W• Admin/Compliance 0.25c/W• Total $3.75/W installed

(Germany is $2.83NZ/W installed)

• 6kW installed system = $22,500 +gst

Your income on a 6kW PV array

• Annual generation 6600 kWhr• Potential savings at 25c/kWhr = $1980/year • % return = 8.8% (inflation proofed)

The above assumes you can sell at the same price you buy or can consume it all yourself.

Retailer Pricing It’s a 2 horse race

Source: SEANZ

Meridian25c per kWhr capped at 100kWh per month, with 10c per kWhr thereafter.

Contact17.5c

Trust Power 6.5c

Genesis 4-7c

Mercury 3.5c

Contact V Meridian

Contact: $1155/Annum = 5.1% ROI

Meridian: 1200 units at 25c, balance at 10c= $840/Annum = 3.7% ROI

Likely Customers – On grid solar PV

• Rest homes – consume all the power generated, no need to sell. They get best ROI >10% as operate 24/7.

• Businesses that open every day.• Schools (weekend base load only)• Retired clients with money in the bank and still 20

years to live (at home during the day).• The affluent green consumer.• Uninformed clients that want to beat the system.

What falls in price faster than Solar PV?

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 20140.00

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Answer:

2011 20120

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Meridian buy back price

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s/kW

hr

Can Solar PV make a difference? Germany Breaks World Record for

Solar Power Generation with 22GWWith highs of 23ºC and cloudless

skies on May 26, Germany produced 22GW of electricity, meeting nearly

50% of the country’s midday electricity needs.

The 50% peak is only 3% of the total annual generation.

http://en.wikipedia.org/wiki/File:Germany_Electricity_Generation_5-25-26-2012.png

2008 per minute electricity consumption

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Time of day

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Inglewood high school

Summary – Solar PV

• Commercial: Match clients demand profile to PV generation profile to minimise units sold to the grid. Return typically in the range 8-10%.

• Domestic: Locate the right client match, ask why the client wants to install solar PV? Return typically in the range 3-5%.

Small Wind – Economics killed by solar PV

Small Hydro – Still the most cost effective on good sites

Enough talk – let’s hook up a solar PV system

"I’d put my money on the Sun and Solar Energy, what a source of Power! I hope we don’t have to wait until oil

and coal run out, before we tackle that.”

-Thomas Edison

Questions