PV is not competitive with grid power--no matter what they say

2007-08-02T10:32:00.001-07:00

I did enjoy last nights discussion. They were not, however, correct about the economics of PV.

It is true that the total cost of electricity produced via household PV installations is ~0.25/(kwH)--which is very competitive with the price of power delivered in many metropolitan areas. There are two critical factors. 1) variability and 2) supply and demand.

1) We all know that grid power is incredibly reliable. To make a household PV installation as reliable as grid power, then one would need household storage and 2X-3X PV-power capacity. Storage and extra capacity will significantly increase the cost of PV electricity.

2) At $0.25/kwH delivered (~$0.12/(kwH produced)), most power producers are making huge profits because, as we all know, every power producer gets paid the market clearing price. Therefore, as household PV is adopted, peak demand will fall. As peak demand falls, the market clearing price will drop and the current price of PV will no longer be competitive.

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2007-07-22T16:40:00.000-07:00

Here is where we (i.e., the HEJC and others) can post and discuss all things energy!!!!

Harvard Energy Blog

PV is not competitive with grid power--no matter what they say

First Post