Solar Grid Parity 101

Solar Grid Parity Coming soon Slideshow designed by John Farrell, Director Energy Self-Reliant States and Communities program

Solar Grid Parity =cost of solar = grid electricity price

Cost of Solar =cost of solar = grid electricity price

Cost of solar ($/W)$6.40 $5.20 $3.75 U.S. Average (mid-2011)

Cost of solar ($/W)

Cost of Solar Type Residential Cost per Watt $6.40 Levelized Location Minneapolis Cost per k Wh Project life 25 years 0 .37Interest, Maintenance, etc $0.16/kWh Output (kWh/kW/year) 1,250

Cost of Solar Type Residential Cost per Watt $6.40 Levelized Location Los Angeles Cost p er k Wh Project life 25 years 0 .31Interest, Maintenance, etc $0.16/kWh Output (kWh/kW/year) 1,500

Cost of Solar Type Residential Cost per Watt $6.40 Levelized Location Minneapolis Cost per k WhInterest,Project life Maintenance, etc $0.16/kWh 25 years 0 .37Interest, Maintenance, etc $0.16/kWh Output (kWh/kW/year) 1,250

Cost of Solar Type Residential Cost per Watt $4.40 Levelized Location Minneapolis Cost p er k WhInterest,Project life Maintenance, etc $0.16/kWh 25 years 0 .25Interest, Maintenance, etc $0.16/kWh Output (kWh/kW/year) 1,250

Cost of Solar (Sensitivity) Sunnier Shorter Defaults Lower cost location project $6.40/W $6.40/W $6.40/W $4.40/W Minneapolis Los Angeles Minneapolis Minneapolis 25 years 25 years 20 years 25 yearsLevelized $0.37 $0.31 $0.43 $0.25 Cost

Cost of SolarLevelized cost of solar installed at $4.40/Watt

Grid Electricity Price =cost of solar = grid electricity price

Grid Electricity Price Existing Power Plant per k Wh 0 .04 6/1/1970

Grid Electricity Price Existing Power Plant per k Wh 0 .04 6/1/1970Amortized power plant = new power plant

Grid Electricity Price Market Price Referant per k Wh 0.12OK for utility-scale solar (wholesale)

Grid Electricity Price Retail Price va riesFor on-site solar (retail)

Grid Electricity PriceAverage residential retail rate (Feb. 2011, EIA)

Solar Grid Parity 50% or better 95% to 105% 2011: 1 state 150% or moreRatio of solar cost to average residential retail rate

Solar Grid Parity 50% or better 95% to 105% 2016: 3 states 150% or moreRatio of solar cost to average residential retail rate

Solar Grid Parity 57 million people 50% or better 95% to 105% 2016: 3 states 150% or moreRatio of solar cost to average residential retail rate

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Solar Grid Parity 101

by John Farrell on Dec 19, 2011

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Solar Grid Parity 101 — Presentation Transcript