Goal: 90º SouthPV Cost Competitive with Fossil Fuels
(5-8¢ kWh Retail by 2015)
PV Value Chain
6. BOS
7. INSTALLER
9. UTILITY 8. OWNER
Market Enabler
End User
50 % System Cost
Danish turbine blades passing through Seattle WA from Denmark
• 100 million in incentive payments over 9 years
• 7 millon people, 3 million homes, 1/6th with suitable rooftops, at $ 18,000 per system
EQUALS $9 Billion Market
Europe’ssolar resource
vs. Washington State’s
Legislative Environment• Sales Tax Exemption
• Net Metering
• Customer sited Solar defined as Conservation
• Si Production Tax Reduction
• State Production Incentive favoring WA Product
• 937 portfolio standard
Why production incentives?
• Proven successful in Germany
• Market Driven
• Low overhead
• Less command and control
• Driven by consumer awareness
$0
$0.08
$0.16
$0.24
$0.32
$0.40
$8 $6 $4 $2 $1
ResidentialCommercial
Cost of power vs. Cost per installed watt
Cost of power in WA US DOE2015 goal
$0
$0.14
$0.28
$0.42
$0.56
$0.70
Base incentive Wa Invert. Wa Inver. & mods
$0.07
$0.07$0.07
$0.36
$0.18$0.18$0.15
Washington Production Incentives
Utility Ownership of Power Conversion Technology
•Utility needs feature set, not the owner
• Buries cost of conversion technology
•Gives utility a service to customer
•Reduces solar installer time on job
•Opens path to utility financing
90º South: Installed per kWh Cost 2006-2015
Modules Racking Inverter LaborCost/kW
Warrantee Life
kWhper year
Cost /kW
Current 4.50 0.60 0.50 3.00 8.6 20 1200 0.65
WA Made
6.5 0 0.25 2.00 8.75 25 1200 0.29
2015 3.50 0 0.15 1.00 4.80 40 1300 0.09
Some kWh cost A\assumptions: Costs in current dollars, inflation and fuel escalation costs negate each other
In the creation of photovoltaics, we have taken sand, the 2nd most common element in the earth’s crust, and created a silent, non polluting energy source, with no moving parts and unprecedented reliability,
Photovoltaics are capable of generating far more energythan used in their production. Their cost will onlydecrease as we implement the technology...
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