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Cost-Effectiveness of Distributed Generation Technologies and concrete. Steeper learning curves and greater manufacturing volumes will do less to reduce those material costs. Costs in SGIP Cost data from SGIP reflect costs considered eligible under the program. The 2009 program handbook specifies these as eligible costs with regard to wind projects: Self-generation equipment capital cost. Engineering and design costs. Construction and installation costs. For Projects in which the generation equipment is part of a larger Project, only the construction and installation costs directly associated with the installation of the energy generating equipment are eligible. Engineering feasibility study costs. Interconnection costs, including: Electric grid interconnection application fees. Metering costs associated with interconnection. Environmental and building permitting costs. Warranty and/or maintenance contract costs associated with eligible Project cost equipment (SGIP required a minimum 5-year warranty). Sales tax and use tax. On-site system measurement, monitoring and data acquisition equipment. Cost of capital included in the system price by the vendor, contractor or subcontractor (the entity that sells the system) is eligible if paid by the System Owner. These eligible costs are very similar to those described in the literature and used in this section, except for the last item—the cost of capital. Such costs are not included in the non-SGIP costs described in this section, so they may appear lower than SGIP costs that had included cost of capital. It is not clear if any SGIP costs for wind turbines included any costs of capital. The turbines already funded by SGIP include 20, 225, 750, and 950 kW units. The 950 kW turbine had the lowest unit cost of $2,200/kW (2003$). The others ranged from $4,000/kW (2009$) to $5,600/kW (2007$). Of eight SGIP wind projects still in the pipe, three proposed capacities are between 1.5 and 2 MW and another three proposed are between 2.5 and 5 MW. No information is available on their proposed turbine sizes, but presumably these include several single-turbine systems. The proposed unit cost of these range from $1,400 to $7,500/kW (2009$), with a median of Itron, Inc. Appendix A-78 DG TechnologiesPDF Image | Cost-Effectiveness of Distributed Generation Technologies
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