Cost when using photovoltaic cell Essay

Solar energy industry utilizes prize per Watt peak, which is the primary unit of measurement for computing cost. Current prevailing price for solar energy generation is at around $4/Wp. Basically; cost would depend on the total installed cost for the system. Around 40% to 50% of the cost would be for the solar module. A complete system includes the entire required component for a functioning system. As of 2003 a residential system would cost at around $8,000 – $12,000 per kWp installed (SolarBuzz, 2006). Based on data, a 1kWp unit would produce differently depending on the location and levels of sunlight. Generated data for Southern California produced 1800 kwh/year while for Northern Germany was 800 kwh/year and 1600 – 2000 kwh / year in India using the same 1kWp unit of solar system. However, gradual improvements on the silicon crystal model of PV cells contributed to a dramatic reduction of the cost of photovoltaic electricity (Cartlidge, 2007). Actual generated power would still depend on the location and prices are variably dependent on the local tariffs. Compared to other existing rates for energy generation distributed solar PV would be 30cents to 50cents/kWh the current rate is still far from the 3 – 5 cents / kWh rate for combined cycle gas turbines. Although there is a promising trend of decreasing rate of generation cost due to decrease in installation cost (Space_Daily, 2005). The amount of roof space needed to roof-mount a solar system is based on the size or â€Å"generating capacity† or â€Å"rating† of the system you purchase. Most residential systems require as little as 50 square feet of mounting area for a small â€Å"starter† system, or as much as 500-1,000 square feet for a PV array capable of meeting all of a homeowner’s needs. Commercial systems are typically much larger than residential systems. A rule of thumb is that a square foot of single- or poly-crystalline PV module area produces 10 watts of power in bright sunlight. Therefore, a 1000-watt system requires about 100 to 200 square feet of roof area, depending on the type of PV module. The amount of roof area needed also depends on the PV module’s efficiency in converting sunlight to electricity. Table 1 provides approximate roof area requirements as a function of PV efficiency (percent) and rating (watts). Table 1: Roof Area Needed for Various Sizes of PV Systems Although the efficiency (percent of sunlight converted to electricity) varies with different types of PV modules, higher-efficiency modules typically cost more. One of the main barriers to the development of rural electrification markets with photovoltaic is the financing of the high up-front investment of an SHS, which is the critical point for most of the rural households, as well as for many photovoltaic intermediaries. Depending on the size of the local market, taxes the share of locally manufactured components and governmental policy regarding solar technology and rural electrification, an SHS costs between US $500 to US $1,500. Even with the existence of subsidies for the installation of an SHS, such investment costs are much too high compared to the average income of the target households. For this reason, financing schemes allowing payment by installments must be offered – they are needed in national electrification programs as in commercial markets. In this connection, micro-finance institutions (MFI) could play an essential role in the dissemination of SHS. This not only represents a solution for the existing barriers regarding the electrification of remote rural households, but also offers new market opportunities for . MFI for example, ill form of rural electricity loans, which additionally offer the convenience of secure guarantees of the hardware, especially the solar panel. PV today is economical only if it does not have to compete with grid electricity. Nevertheless, the technology is only at the beginning of its development and hopes are high for further large cost reductions. At present, however, it is not obvious that the cost of PV can reach present levels of the cost of base load electricity, but it call reach consumer retail prices. Besides development of technology, market expansion is a proven way of bringing down cost. In several countries that take their obligation to reduce greenhouse gases seriously, comprehensive support programs for distributed PV installations have been legislated. One example is the German renewable energy law, which stipulates that utilities have to pay for PV electricity fed into the grid about 0. 5 $/kWh for twenty years. This reimbursement is reduced by 5% each year for new installations in order to stimulate cost reduction (Elwell & Komp, 2007). Manufacturing of PV cells undergoes many processes. After producing the solar cells, they have to be transported and assembled. Solar cell usually have a life span of 25 years. After which they are disassembled and transported for proper disposal. A study was conducted to measure the total energy consumed in the manufacture alone of the solar cells. Using the Sharp ND-205U1 module, which cost $850, a forty-four-module order would require $28,900, not including the cost of wires and inverters installed along with the solar modules (Riley & Meyers, 2005). Renewable sources in Middle East In the Middle East, governments are pushing for finding an alternative to fossil fuels to meet its energy requirements. Renewable sources are being eyed. Due to the depleting supply of fossil fuels, United Arab Emirates has already undertaken projects in preparation for meeting the required power needed. It is estimated that by 2015, 14% of estimated power requirements would be saved with the utilization of wind and solar energy. By 2050 it is forecasted that almost half of energy requirements of UAE would be supplied by wind and solar energy with PV generation forming the largest percentage of the two (WFES, 2004). Other Middle East countries are likely to follow in their endeavor to preserve the region’s main source of wealth – oil and gas. Syria, Saudi Arabia, Iran Bahrain and Lebanon have already implemented or will be implementing strategies in harnessing these renewable sources abundant in the region (Middle_East_Electricity, 2005). One project initiated in Israel, which aims to provide electricity and water supply in a small rural village in Palestine. Greenstar identified one of the four-target villages Al Ka’abneh, West Bank, Palestine. The purpose of the project is to supply electricity with the installation of PV cell system. Before the project was instituted, the village had no electricity and water was not sanitized, thus resulting to health problems as one of the prevalent challenged areas of the village. The locals were taught how to maintain and utilize the PV system installed in their village and care was delegated to them. The project supplied the village with a 100 kW PV generator, which was used to power the village’s health clinic, mosque and school. Aside from the generator, the village was also supplied with a PV powered water pumping and desalination units. Among the lessons learned from the project is that solar energy provides simple solutions to simple electrical needs of small isolated villages where a national grid is rendered superfluous (Greenstar, 1999).