Solar Grid Parity 101 (old - see feed for update)

Solar Grid ParityComing soon

Slideshow designed by John Farrell, DirectorEnergy Self-Reliant States and Communities program

Solar Grid Parity

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grid electricity pricecost of solar =

Cost of Solar

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grid electricity pricecost of solar =

Cost of solar ($/W)

U.S. Average (mid-2011)

$6.40 $5.20 $3.75

Cost of solar ($/W)

U.S. Average (mid-2011)

$6.40 $5.20 $3.75

Cost of solar ($/W)

Project life 25 years

Type

Cost of Solar

Cost per Watt $6.40

Residential

Location Minneapolis

Output (kWh/kW/year) 1,250

0.37 per kWh

Levelized Cost

Interest, Maintenance, etc $0.16/kWh

Type

Cost of Solar

Cost per Watt $6.40

Residential

Location Los Angeles

Output (kWh/kW/year) 1,500

0.31 per kWh

Levelized Cost

Project life 25 years

Interest, Maintenance, etc $0.16/kWh

Type

Cost of Solar

Cost per Watt $6.40

Residential

Location Minneapolis

Output (kWh/kW/year) 1,250

0.37 per kWh

Levelized Cost

Interest, Maintenance, etc $0.16/kWhProject life 25 years

Interest, Maintenance, etc $0.16/kWh

Type

Cost of Solar

Cost per Watt $6.40

Residential

Location Minneapolis

Output (kWh/kW/year) 1,250

0.43 per kWh

Levelized Cost

Interest, Maintenance, etc $0.16/kWhProject life 20 years

Interest, Maintenance, etc $0.16/kWh

Type

Cost of Solar

Cost per Watt $6.40

Residential

Location Minneapolis

Output (kWh/kW/year) 1,250

0.37 per kWh

Levelized Cost

Interest, Maintenance, etc $0.16/kWhProject life 25 years

Interest, Maintenance, etc $0.16/kWh

Type

Cost of Solar

Cost per Watt $4.40

Residential

Location Minneapolis

Output (kWh/kW/year) 1,250

0.25 per kWh

Levelized Cost

Interest, Maintenance, etc $0.16/kWhProject life 25 years

Interest, Maintenance, etc $0.16/kWh

Cost of Solar (Sensitivity)Defaults Sunnier

locationShorter project Lower cost

$6.40/W $6.40/W $6.40/W $4.40/W

Minneapolis Los Angeles Minneapolis Minneapolis

25 years 25 years 20 years 25 years

Levelized Cost $0.37 $0.31 $0.43 $0.25

Cost of Solar

Levelized cost of solar installed at $4.40/Watt

Grid Electricity Price

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grid electricity pricecost of solar =

Grid Electricity Price

0.04 per kWh

Existing Power Plant

6/1/1970

Existing Power Plant

Grid Electricity Price

0.04 per kWh

6/1/1970

Amortized power plant = new power plant

Grid Electricity Price

0.12 per kWh

Market PriceReferant

OK for utility-scale solar (wholesale)

Grid Electricity Price

varies

Retail Price

For on-site solar (retail)

Grid Electricity Price

Average residential retail rate (Feb. 2011, EIA)

Solar Grid Parity

Ratio of solar cost to average residential retail rate

2011: 1 state

50% or better

95% to 105%

150% or more

Solar Grid Parity

Ratio of solar cost to average residential retail rate

2016: 3 states

50% or better

95% to 105%

150% or more

Solar Grid Parity

Ratio of solar cost to average residential retail rate

2016: 3 states

50% or better

95% to 105%

150% or more

57 million people