
544 PHOTOVOLTAIC SYSTEMS
It looks like there might some advantage to using the tracker, but only a more careful
analysis based on real components could affirm the validity of that conclusion.
9.4.2 Dollar-per-Watt Ambiguities
The most important inputs to any economic analysis of a PV system are the initial
cost of the system and the amount of energy it will deliver each year. Whether
the system is economically viable depends on other factors—most especially,
the price of the energy displaced by the system, whether there are any tax credits
or other economic incentives, and how the system is to be paid for. A detailed
economic analysis will include: estimates of operation and maintenance costs;
future costs of utility electricity; loan terms and income tax implications if the
money is to be borrowed, or personal discount rates if the owner purchases it
outright; system lifetime; costs or residual value when the system is ultimately
removed; and so forth.
Begin with the installed cost of the system. For individual buyers, it is total
dollars for their system that matters, but when an overall snapshot of the industry
is being presented, it is common practice to describe installed costs in dollars per
watt of peak power. There are two ambiguities with the $/W indicator, however,
which must be made clear for the parameter to have any meaning. One is whether
the watts are based on dc power from the PVs or ac power from the inverter. The
other is whether or not a tracker has been used. To illustrate these differences,
Table 9.7 summarizes the costs for the tracker versus fixed-array analysis just
derived in Example 9.10. As can be seen, even though the tracker delivers the
same kWh/yr and it is cheaper than the fixed-tilt array, it appears to have a
higher cost when expressed as $/Wdc or $/Wac. Clearly, some factor is needed
to account for the greater energy delivered by a module in a tracking system.
When a PV system uses tracking, an Energy Production Factor (EPF) must
be included in order to make the simple $/Wdc or $/Wac descriptors directly
comparable to those systems that have a fixed orientation. The EPF is essentially
the ratio of insolation on the tracking surface to that on a fixed surface (for the
example in Table 9.7, EPF = 7.2/5.4 = 1.333), which leads to the following:
Tracker($/W) =
$/W
EPF
=
$/W
(Tracking insolation/Fixed insolation)
(9.17)
When the EPF is included, the tracking array in Table 9.7 does correctly appear
to be the least-cost system.
So, having resolved the $/W ambiguities, how much do systems cost? Data
gathered by the Utility Photovoltaic Group (UPVG) on actual costs of over 600
residential PV systems installed between 1994 and 2000 has been summarized in
Fig. 9.33. Of the total $6.80/Wdc, a little over 60% is modules with the remainder
roughly equally divided between other components and installation.