4.4.3 PV SYSTEM COSTS

Installed PV system prices depend to an important extent on the costs of the PV modules, but also on many other factors such as the project location, application, integration mode, project size, grid connection, the number of intermediaries in the supply chain, as well as the technical specification and the applicable market stimulation measures. The current capital cost of a typical installed photovoltaic system ranges from ~ 5 €/Wp to 8 €/Wp.

 

Source : Winfried Hoffman, RWE Schott Solar Gmbh, Germany, 2003

Figure 4.9 Value chain for PV Systems

Figure 4.9 shows breakdowns of the costs of typical PV systems, depending on their use either in stand-alone or in grid-connected applications.

 

4.4.4 Costs of solar electricity

Source : European Commission - DG Tren.

Figure 4.10: Projected electricity cost in €/kWh depending on the level of solar irradiation. (Projection based on levelized electricity cost)

 

As a consequence of falling PV system prices, the cost per kWh of solar electricity is decreasing as well, although it is also dependent on the degree of solar irradiation.
The predicted decreases in the costs of PV electricity over the next 20 years are shown in figure 4.10 for three different levels of system yield, which correspond typically to yields for good grid connected PV systems in the North, middle and South of the EU. These different levels of yield arise because the electricity yield per installed kWp of PV system capacity depends on the level of solar irradiation.

 

To choose the best system for you, a useful "solar wizard" exists on the web, designed by Ecofys: http://www.mysolar.com/mysolar/pv/step1a.asp