Hi, folks. So what I want to do in this tutorial is to introduce this term, which is Levelized Cost of Energy. And sometimes it’s also abbreviated as LCOE. And this LCOE is a very important matrix, because it’s often used to essentially compare the different options.
That you might have for energy generation. So, let’s say you have an option one for generating this energy using photovoltaics. You might also have an option to generate this same electricity using nuclear power, powerplant. Or you might have another option which is to install a wind turbine.
So, often the way to essentially compare our decide between these options is using the cell matrix, which is LCOE. And the unit in which this LCOE is reported is actually something that we can relate to. So this LCOE is reported in the same set of units which is used for which is what we are used to for paying our electricity bill.
So this lcoe is of, is reported in essentially in cents per kilowatt hour. And if, if we compare it it’s often compared to what you pay typically for your electricity, residential electricity rate. And that again depends upon where you live. But for example, if you live in the Bay Area.
And you have a pg and e, supplying your electricity. So, for me I live in Palo Alto, when I pay my bills, this cost is typically 11 cents per kilowatt hour. So this LCOE is also very subjective to them, as we’ll see shortly. So often while reporting these LCOE numbers, you report a range. For example, over here you see this envelope which is.
Representing the lcoe or levelized cost of energy for photo voltage. And this is plotted as a function of time. So we see that as time is progressing. This levelized cost of energy for a sorter is coming down. And for for example, but say around 2015, which is over here. This levelized cost of energy, it’s reported to.
Be between 10 and 16 cents per kilowatt hour. And another thing you can see over here that this LCOE, it depends very heavily on public policy. So this blue overlap in here, this is plotting this LCOE with the investment tax credit and this ITC. So, this ITC over here, it stands Investment Tax Credit.
So, currently in united states, if you buy a solar panel, you got an investment tax credit of 30% which allows you to essentially. Subtract 30% of your initial investment from your tax bill. So that’s a huge advantage and it brings down this Levelized Cost of Energy for solar to be less to be reduced by 30%. But this investment tax credit is supposed to expire at at you know at around.
Learn about Solar Energy and Solar Panel Installation
gt;gt; mcclintock: okay. am i on? can you guys hear me all right? gt;gt; Okay. gt;gt; McCLINTOCK: Okay. Thank you so much for having us, thatswe really appreciate it. All right then. The technology works, okay. First of all before I start, let me ask a little about you all. How many of you know absolutely nothing about solar energy? Or justokay. How many of you know a little bit and are interested potentially in solar energy for your home? Okay, a fair number.
How many of you know a fair amount about it, pretty extensive and want to ask, you know, want to quiz me pretty extensively? All right. Okay great. Excellent. Okay so aa pretty good range. That will help me in terms of how much I spend time on different things. This is what were going to go over and feel free to ask me questions. Therell be time both at the end and during my presentation. This iswere going to cover kind of the basics of solar energy. Were going to focus on Photovoltaics, basically solar electricity.
For your home today. ill touch on some of the other technologies, the process for installing a system on your home and in that context, things to askquestions to ask and things to look for when youre thinking about solar energy. Were going to go over some examples focusing on the economics of solar. And then we’re going to go over some interesting solar energy myths or some things that people think about that may or may not be true. And then, of course, well have time for questions and answers. There are two basic types of.
Solar energy. theres a lot of talk in the market place about solar technologies and its really a fascinating area for research and development today which was one of the reasonswhat makes it so interesting. And just to give you a little bit of background about myself, I actually learned about solar energy in high school when I was on the debate team, which is kind of a embarrassing secret but in order for me to start a company though, I did as Joe mentioned, I published two white papers, I did an extensive amount of research.
And before i bought our fairly large solar energy system for our home, we have a 16 kw system at my home and thats because our house is kind of large and it was built before anybody thought about the idea of energy conservation, or building a home with the idea of energy efficiency as you can tell. I interviewed over 25 solar installers and dealers. And believe me, if I werent thinking about starting a company and getting into the business, I wouldveI definitely wouldnt have gone through that process and none of you should.
Ever have to do that. so, and thats part of the reason why i founded readysolar because nobody should have go through that. There are two basic types of solar energy, basically theres solar electric, and I break these into two categories, theres photovoltaic, crystalline silicon, which is most of the regular types of panels that you see today, and those are the types of panels that are out on the top of car ports out in the parking lot. Theres amorphous silicon which is confusingly called thin film, and its the kind of flexible.
Panel that often rollsis rolled down on metal rooftops and so forth. and then theres the new kind of thin film which is either different kind of element entirely from silicon or its silicon mixed with other kinds of elements. And sometimethe benefit is that it can achieve higher efficiency or doesnt use silicon because currently theres a shortage of silicon which is kind of ironic because of the abundance of silicon in the earths crust. But any way, there are a variety of technologies many startedsome Im sure.
Youve heard of that are working on some of these thin film technologies which use a much smaller amount of substrate to create electricity. The problem with thethis kind of amorphous silicon isor the benefit of it is that it can be flexibly used, it requires a plastic substrate so you dontit can be much more inexpensively created however and it uses less silicon. However its less efficient so you need about twice as much of it in terms of area as you do a traditional crystalline silicon panel. So if you have.