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Cost-Effectiveness of Distributed Generation Technologies

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Cost-Effectiveness of Distributed Generation Technologies ( cost-effectiveness-distributed-generation-technologies )

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Cost-Effectiveness of Distributed Generation Technologies Costs in SGIP From 2001 onwards, 142 microturbine projects were rebated under the SGIP. Table A-37 summarizes installed costs of the 142 microturbine systems deployed under the SGIP from 2001 through 2008. Out of the 142 projects, 26 or 18% had the capability of using fuel from a renewable source. Information on the total installed cost for each of the rebated projects was obtained from the SGIP PAs. Based on the SGIP data, the average total installed cost for microturbines using non-renewable fuel was $3,146/kW, while those employing renewable fuel was slightly higher at $3,972/kW. Table A-37: Weighted Average Install Costs for Microturbines Installed in the SGIP MT using Non-Renewable Fuel MT using Renewable Fuel Weighted Average Cost per kW Weighted Average Cost per kW Year Count Count 2001 -- 2002 23 2003 18 2004 24 2005 31 2006 6 2007 11 2008 3 All 116 -- 1 $3,195.53 2 $2,730.72 5 $3,249.55 5 $2,920.29 8 $3,190.74 1 $3,372.45 2 $3,780.52 2 $3,146.64 26 $3,013.71 $2,825.30 $2,592.72 $4,038.53 $4,783.44 $2,607.38 $3,167.49 $7,968.18 $3,972.18 SGIP cost data clearly shows that the cost for installing microturbines depends on number of factors. The weighted average installed cost of microturbines using non-renewable fuel based on SGIP data was around $3150 per kW. Since the cost of the microturbine from the manufacture was close to $950 per kW, the remaining $2,200 per kW was treated as the average cost required to install the system. The installation was assumed to include the cost of installation labor and materials, distributor markup, engineering, project management, piping, and financial carrying costs during the construction period. A.5.5 Conclusion on Capital Costs The main conclusion after reviewing the costs associated with installing a microturbine is that the total cost varies on lot of factors associated with the site. Based on the SGIP data, the total Itron, Inc. Appendix A-60 DG Technologies

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