25 Feb 2009
Thin-film solar cell manufacturer First Solar yesterday announced it has broken the $1 (70p) per watt cost barrier that is widely accepted as the point at which solar panels become cost competitive with fossil fuels.
The company said that during the fourth quarter of last year, the manufacturing cost for its solar modules stood at 98 cents per watt, taking it below the $1 per watt mark for the first time.
Mike Ahearn, chief executive at the company, hailed the achievement as a " milestone in the solar industry's evolution towards providing truly sustainable energy solutions", adding that it provided evidence that solar manufacturers could prosper in the long term even as government subsidies are reduced.
First Solar said it was confident that plans to more than double its production capacity through 2009 to more than one gigawatt would allow it to reduce costs further to a point where energy from solar panels can undercut that from natural gas and coal.
According to the company, it has already reduced costs from more than $3 a watt in 2004 to less than $1 a watt now and there is every indication that the trend will continue as production capacity increases.
In related news, Utility Scale Solar, a manufacturer of tracking devices for solar thermal projects with a similar goal of reducing the cost of solar panels below the level of coal and gas-fired power, is reportedly seeking $6m in first-round funding to begin rollout of its technology.
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kaneka panels already retailing for $1.20 a watt
sunelec.com is selling $1.20 a watt panels right now.If you buy the rest of the system from them they will sell you the 60 watt kaneka panels for 98 cents per watt. This is the actual retail price not the production cost price.For a while they were selling whole crates of 25 panels at 98 cents per watt but got smart and now require you purchase other items to get this price.Their other products are fairly reasonable though so still not a bad idea.
Posted by james Smith, 13 Mar 2010
Implies $0.098 (US) per KWhr
Cost per KWhr at $0.98 cost per Watt ~ $0.098 installed. See below. Calculate KWhrs: Stated Efficiency = 10.8% (panels guaranteed to produce 80% of this value after 25 years of use, linear degradation with respect to time, see latest quarterly statement). Tested impinging irradiance energy = 1000Watts/Meter good yearly average value at solar noon across the latitudes spanning continental US. (USGS has irradiance values for different locals, NREL uses this value). Panel size = 2' X 4' minus edge effects = 23" x 46" = 0.683 Meters square. peak useable energy ~ 73 Watts per panel. Assume solar energy is positive sinusoidal (clipped at 0). Average day length = 12 hours. 12 hours * RMS factor * Watts per panel * ave degradation factor = .525 KWhr per day (12hours * 0.667RMS * 73Watts * 0.9aveDegradation). Assume 80% of solar energy available (due to cloudy days, diffuse light etc.). By the way, CdTe panels are much better at capturing diffuse light than Si panels. Because of this they don't need tracking devices. Panel guaranteed to produce 3835 KWhrs over 25 years (guaranteed panel lifetime (will produce 80% of initial power rating after 25 years)) given the assumptions. (25years * 365.25days * 0.8EnergyAvai l* 0.525KWh/day) Assume current cost of installation per Watt is ~2.5 times cost per Watt(includes cost of scaffolding, inverters, labor, connection to grid at source, does not include cost of land, cost of transmission (it's usually a separate item in your electric bill)). As a note, the cost per Watt includes the cost to collect, recycle and reuse the panels (CdTe is recovered and reused, glass recovered and reused, copper recovered and reused). So at $0.98 per Watt to make, we have $3.43 to make and install per Watt. Operating margin (See FSLR quarterly report ~50%) and assume the same for installers --> total cost = $5.15 per Watt --> 9.8 cents per KWhr; (($5.15 * 73Watt)/3835KWhr). Maintenance cost is minimal (no moving parts, don't have to wash the panels, etc.). A highly inflated cost would be 10% of cost per Watt --> $5.66 --> 10.8 cents per KWhr. As a note regarding Te availability check out FSLR SEC statements and see where they've been investing some of their money... With respect to CdTe toxicity, check out the studies about amount of Cd released when panels exposed to 1100C fires... If you check out their website and you believe the numbers, if they get to $1 Watt (sold so includes margin) to make and $2 Watt installed (sold so includes margin) then the cost per KWhr drops to 6.3 cents per KWhr by 2012.
Posted by Dan, 02 Mar 2009
Confusion over Thin Film Prices
I am confused at reported costs of thin film versus the mono/polycrystalline panels These price around US$1,000 for 2oo watt module i.e. the oft quoted US$4 to 5 per watt. On the other hand the price of thin film modules is around US$350 to 400 for an 18 Watt module; or am I misunderstanding something?
Posted by A. M.Torrance, 03 Mar 2009