ELECTRICITY PRICE
Electricity prices for systems with a planned 20-year lifetime with
5 % discount rate and for typical annual yields of 900 kWh/kWp,
1000 kWh/kWp, 1500 kWh/kWp, 1700 kWh/kWp and 2000 kWh/kWp
are presented in Figure below.
In this calculation annual maintenance costs representing 1 % of the
investment are considered. The yield range presented in the abovementioned
Figure covers (rough estimate) the typical annual yield achievable in
European countries. 900 kWh/kWp can be attained in northern Germany using
fixed mounted systems, while up to 1500 kWh/kWp is possible in Italy,
Greece and Spain and about 2000 kWh/kWp in those same countries using
two-axis tracking systems. In southern USA even higher yield is possible.
Electricity price (EUR/kWh) of grid-connected PV power plants for a 5 % discount rate and 20-year system
lifetime for different yield rates (kWh/kWp), sorted by annual yield. Investment range from 2 - 4 Euro/kWp
as presented on Y-axis covers average investment in period from 2008 to 2010 (see figure labels).
Source: Large-Scale Photovoltaic Power Plants, pvresources Annual Review 2008 Extended Edition, June 2009.
FEED-IN TARIFFS
The economic viability of the photovoltaic power system depends upon the initial
investment and the utility's payback rate. The payment for photovoltaic energy
inserted into the grid (compared to the cost of conventional energy taken from
the grid, r = ratio between these 2 prices) varies from country to country.
Many different Buy-back schemes are applied around the world. Some of them are
briefly described:
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Very low buy-back rate schemes
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Very low schemes apply the same conditions as for other
producers; consequently, the rates are generally low and the ratio r is << 1.
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Low schemes
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Simmilar than above however, special incentive premiums
(+10 % up to +100 %) are granted on these general buy-back rates.
The resulting total energy payment is still low, with r < 1.
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Parity schemes
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The price paid for photovoltaic electricity is equal to that
charged by the utility (r = 1).
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High schemes
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With attractive prices (r > 1, normally 1 < r < 2). Restrictions
are imposed regarding the length of payment (high payment during n years/further
years at reduced payment).
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Very high schemes
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With the highest tariffs (r >> 1, normally 5 < r < 6), and
foreseen strictly for photovoltaics.
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other schemes
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Where green electricity can be bought by users without a
photovoltaic-system.
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RENEWABLE ENERGY POLICY
DSIRE - The Database of State Incentives for Renewable Energy -
the Database of State Incentives for Renewable Energy (DSIRE) is a comprehensive source of information on state, local, utility, and selected US federal incentives that promote renewable energy.
RES LEGAL - the website on legislation on renewable energy generation.
Here you will find a collection of and information on the most important legislation
on the support schemes and grid access for electricity from renewable sources
within the EU 27.
Government of Western Australia, Office of Energy
- The Office of Energy leads the development and implementation of policy and
programs to meet Western Australia's energy needs. The agency is committed to
driving change in a way that achieves improved economic, social and environmental
outcomes for Western Australia.
ADDITIONAL INFORMATION
Books
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Mendonça, M.:
Feed-in
Tariffs: Accelerating the Deployment of Renewable Energy; 
Earthscan, 2007, ISBN 978-1-84407-788-5.
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Mendonça, M., Jacobs, D., Sovacool, B.:
Powering
the Green Economy: The Feed-in Tariff Handbook; 
Earthscan, 2010, ISBN 978-1-84407-858-5.
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Klein, A.:
Feed-in
Tariff Designs; 
VDM Verlag Dr. Mueller e.K., 2008, ISBN 978-3836462389.
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Reports
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The Drivers of the Levelized Cost of Electricity for Utility-Scale Photovoltaics;
SunPower Corp., 14 August 2008.
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IEA: Guidlines for the Economic Analysis of renewable Energy Technology Applications;
based on the findings of IEA Workshop on the Economics of Renewable Technologies;
Chateau Montebello, Quebec, Canada, 1991.
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Short, W., Packey, D. J. Holt, T. (1995): A Manual
for the Economic Evaluation of Energy Efficiency and Renewable
Energy Technologies; National Renewable Energy Laboratory, Golden, CO, A national laboratory
of the U.S.Department of Energy managed by Midwest Research Institute for the U.S.
Department of Energy, contract No. DE-AC36-83CH10093.
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Wenzl, B., Nitsch, J.: Ausbau erneuerbarer Energien im Strombereich; EEG-Vergütungen, -Differenzkosten und -Umlage sowie ausgewählte Nutzeneffekte bis zum Jahr 2030;
Teltow, Stuttgart, December 2008.
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Nowak, S., Rezzonico, S.: Buy-Back Rates for Grid-connected Photovoltaic Power Systems; IEA PVPS Task 1, Report IEA PVPS TI 1997 2, November 1997.
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Papers
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Breyer, C. et al. (2009): Grid-Parity Analysis for EU and US regions and market segments – dynamics of Grid-Parity and dependence on Solar Irradiance, Local Electricity Prices and Progress Ratio; 24th European Photovoltaic Solar Energy Conference, Hamburg, September 2009.
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Campbell, M. (2009): Minimizing utility-scale PV power plant levelized cost of energy using high capacity factor configurations; Photovoltaics International, fourth Edition, 2009.
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