Calling All DIY'ers....What is Your Cost of Production?

[DanS26]

Maybe you mean 0.7%? I agree this can be a useful calculation, and my own much less succinct explanation of it can be found in a thread a month or two ago (probably not worth linking here). What are you hoping to learn? Why limit it to DIY? Perhaps if you go first with an example of the calculations on your own system, it will encourage more responses.

Well yes, it a derate of 3/4 of one percent per year.

I want to learn how close we are coming to parity with fossil fuel generation. Here in the Midwest the big coal plants produce at ~2.5 to 3.0 cents per kWh. But then they have to transport it to their customers and add administration charges, etc. So to make a profit they add demand charges, etc and sell their production at around 6.5 to 7.5 cents a kWh.

If a DIY'er can build a system and produce at around 6.5 to 7.0 cents a kWh then they are competitive.

I produce at 5.8 cents a kWh. I did all the work myself. That is the reason I addressed the DIY'ers. At least in the midwest, if you have to pay someone to put in a solar system, you cannot compete with the big coal powered plants. Now if you are in states with these big solar incentives like CA and NJ then it really is not market comparable. IMHO, in the long run it's all going to come down to the low cost producers, just like most industries.

I built my system two years ago and I know panel, inverter, mounting cost have come down since then. So, I'm just wondering how costs compare now.

[sensij]

Maybe you mean 0.7%? I agree this can be a useful calculation, and my own much less succinct explanation of it can be found in a thread a month or two ago (probably not worth linking here). What are you hoping to learn? Why limit it to DIY? Perhaps if you go first with an example of the calculations on your own system, it will encourage more responses.

[DanS26]

Does # 2 above include year/year anticipated/actual production decline due to panel/system aging ?

Yes, lets say .0071% a year derate.

[J.P.M.]

I'd really like to know how low some of you really handy DIY'ers can go with their grid tied solar installations. But I'm only interested in only one metric..."cost of production".

This is how its calculated:

1. Determine your net cash outlay for equipment and outside labor. Net includes any offsetting rebates and incentives you received in cash from local, state or federal entities. But on the other hand include future maintenance costs and inverter replacements over a 25 year period.

2. Determine your total kWh production over a 25 year period. You can do this by using the PV Watts tool.

3. 1. divided by 2. equals "cost of production" in cents per kWh.

Great metric everyone should know about their system. For you guys that finance or lease, the calculations are a little more involved since you have to use present value analysis, but it can be done.

What say you......

Does # 2 above include year/year anticipated/actual production decline due to panel/system aging ?

[DanS26]

I'd really like to know how low some of you really handy DIY'ers can go with their grid tied solar installations. But I'm only interested in only one metric..."cost of production".

This is how its calculated:

1. Determine your net cash outlay for equipment and outside labor. Net includes any offsetting rebates and incentives you received in cash from local, state or federal entities. But on the other hand include future maintenance costs and inverter replacements over a 25 year period.

2. Determine your total kWh production over a 25 year period. You can do this by using the PV Watts tool. Derate your system by .0071% a year for panel efficiency loss (ie ~3/4 of one percent).

3. 1. divided by 2. equals "cost of production" in cents per kWh.

Great metric everyone should know about their system. For you guys that finance or lease, the calculations are a little more involved since you have to use present value analysis, but it can be done.

What say you......