Electricity Production

Photovoltaic (PV) technology is a common method for generating electricity in the consumer marketplace. PV devices use semiconducting materials to convert sunlight directly into electricity. Almost all U.S. regions have access to usable quantities of sunlight. This technology has been commercially available for many years and millions of systems have been installed worldwide.

The pictured PV array, and the Sun Motor it powered, was displayed at the 1939 World’s Fair. Our CEO’s father was part of the GE design and fabrication team that developed and presented it.

PV panels are generally roof-mounted and wired into a building via an inverter. Inverters convert the DC energy generated by solar panels into AC for use by common appliances. Most structures have roofs which can accommodate the installation of PV panels.

Complex criteria drive the installed cost of PV systems, including the location of the building relative to the sun’s “path across the Earth”, the types of cells used, local climate conditions, the size of the structure and the number of occupants, the types of space heating, water heating and air conditioning equipment installed, becoming grid-connected or not, local code compliance and installation labor costs, etc.

Industry pricing mostly runs between $5.00 and $15.00 per installed watt, with $8,000 to $10,000 per kW being generally accepted as a working guideline until individual site specifics can be assessed to produce a firm quotation.

Efficiency, the percentage of sunlight which is converted into electricity by a PV

cell, is a value driven by many variables, and differences in design and

chemical composition produce significant variations in output capacity, as does

the age of the collector. Efficiency ratings can range up to ~30% but system cost

tends to rise with or even faster than efficiency increases, and the tipping point

for most consumers seems to fall in the 9% to 16% range.

Electricity Production – A Case Study

According to the California Energy Commission, solar energy, and in particular photovoltaic-produced power, has grown massively in recent years. In just the last 3 years, total installations have more than doubled, with 14,058 installs in 2005. Recent spikes in energy costs again highlighted the viability and desirability of alternative energy sources. But the high cost of installing PV systems, even after deducting various federal, state and utility rebate/credit program contributions, tends to produce break even points out 10-20 years or more.