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Table 2-4a. Application Types and Conventional Alternatives (off-grid) Table 2-4b. Cost of Transmission Benchmark Price Primary Batteriesa Line Extension Diesel Gen-Setc Propane Gen-Setc Capacity Cost $15,000/mib $350–500/kW $600–1000/kW Energy Cost 300¢/kWh 7.7–8.6¢/kWhc 4.5–7.0¢/kWh 7.7–15.0¢/kWh O&M Cost 0.5–1.0¢/kWh 0.7–1.5¢/kWh a12V, 18AH sealed lead-acid battery, www.RadioShack.com bThe Potential Market for Photovoltaics and Other Distributed Resources in Rural Electric Cooperatives, Hoff and Cheney. http://www.clean-power.com/research/microgrids/HistoricOpportunity.pdf c EIA Annual Energy Outlook Average Residential Costs 2000-2025 (2001 Dollars) The Role of Distributed Generation in Competitive Energy Markets, A Gas Research Institute summary completed March 1999, http://www.distributed-generation.com/Library/GRI_Role_of_DG.pdf Fuel costs: EIA Annual Energy Outlook Average Industrial Costs 2000–2025 (2001 Dollars) Solar-System Economics: The economics of off-grid applications can be quite different from grid-connected applications. Often, the PV system is lower in first cost than extending conventional energy sources to the point of need. However, off-grid PV systems with storage require replacement of the batteries every few years. Thus, the cost of O&M can be high relative to O&M for a grid-connected system. Often, other non-economic factors lead to the selection of solar for off-grid applications. Value Considerations: The economics of off-grid applications is highly application specific and is often driven by the value of the service provided, more than by the cost of alternate energy supplies. Unlike applications that are connected to both a solar energy system and conventional energy-delivery systems, off-grid applications rely on the solar-system alone, so the design of the system must consider the extent to which uninterrupted power must be ensured. For small-scale applications, sufficient storage will be included to provide continued service at night and in cloudy weather. In addition to storing the electrical or thermal energy produced by a solar system, the application product can be stored, such as a several-day supply of pumped water in a stock tank. If it is not acceptable for the system to go off-line after an exceptionally long cloudy period, then the storage system must be designed conservatively. Solar Energy Technologies Program Multi-Year Technical Plan 22PDF Image | Solar Energy Technologies Program
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