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Jörgen Ekelund

Quantifying The U.S. Solar PV Potential Using Retail Electricity Prices (And A Primer O... - 2 views

    • Jörgen Ekelund
       
      Critical to bringing U.S. residents on-line are large increasesin the availability of financing.  Solar leasing programs/companies like SolarCity are poised to expand rapidly
    • Jörgen Ekelund
       
      This analysis was completed by combining local-level electricity prices by segmentfrom the U.S. Energy Information Association (EIA) with state-level irradiation data from NREL.  The data were analyzed segment by segment, state by state, to determine the points at which the NPV of a solar PV investment becomes positive relative to the NPV of electricity purchases from the utility.  This market-by-market approach is necessary because of the wide distribution of U.S. electricity prices ($0.01-$1.00/kWh) and the wide distribution of solar irradiation (1,200-2,400 kWh/m2).
    • Jörgen Ekelund
       
      Counter to conventional wisdom, solar PV will increasingly come on-line in a distributed manner-i.e., on buildings and residences-Not supplied by utilities.  This is because the price of electricity at retail is 2-3x higher than utility generation cost.  As solar installation costs decrease, the cost of solar electricity will become competitive with retail price points first.  Below $4 per watt, many businesses and residents will save money by installing solar PV on their properties.  Over time, U.S. utilities will face a meaningful erosion of demand.
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