Generally for solar photovoltaic systems, life cycle cost analysis is carried out. A simple and clear method is expected about the LCC.
Also pl. describe the significance of LCC in economic viability analysis of solar PV installations
Solar energy is the most abundant energy resource on earth. But it is of poor competency in economic currently in the starting stage of Solar PV electricity generation. The initial investment of Solar PV power plant is much higher than that of fossil power plant, conversely the Operation and Maintenance costs is quite lower. Taking the life cycle cost and a reasonable payback of investment into consideration, price of on-grid PV power vary with several factors, such as the local solar resource, efficiency of PV system, technical lifetime of PV plant, price of PV modules and so on, most of which are improvable by technological innovation.
There is no doubt that Solar PV electricity generation is expanding very rapidly due to dramatic cost reductions. PV is a commercially available and reliable technology with a significant potential for long-term growth in nearly all world regions. Achieving this will require more concerted policy support, and a long-term focus on R&D to reduce costs and ensure PV readiness for rapid deployment, while also supporting longer-term technology innovations.
Solar energy is the most abundant energy resource on earth. But it is of poor competency in economic currently in the starting stage of Solar PV electricity generation. The initial investment of Solar PV power plant is much higher than that of fossil power plant, conversely the Operation and Maintenance costs is quite lower. Taking the life cycle cost and a reasonable payback of investment into consideration, price of on-grid PV power vary with several factors, such as the local solar resource, efficiency of PV system, technical lifetime of PV plant, price of PV modules and so on, most of which are improvable by technological innovation.
There is no doubt that Solar PV electricity generation is expanding very rapidly due to dramatic cost reductions. PV is a commercially available and reliable technology with a significant potential for long-term growth in nearly all world regions. Achieving this will require more concerted policy support, and a long-term focus on R&D to reduce costs and ensure PV readiness for rapid deployment, while also supporting longer-term technology innovations.
I don't think there is a simple answer to your question. You need to be specific enough.
There are many factors that come into play when it comes to PV systems. You have to consider if your system is off-grid or grid connected power system for remote, stand-alone or distributed generation applications.
Furthermore you have to take into account the cost of electricity in that particular region and other regulations such as tax incentives, all which influence the cost of owning and operating a PV system and may determine the system payback period.
In short, some of the factors to consider for PV LCC include; PV system efficiency, lifetime of the PV system, cost of system components/ panels, local solar resources (insolation), etc.
life cycle cost analysis isn't different by method from case to case. There have been numerous thermoeconomic papers in which the method is employed. LCC, levelized capital cost is cost related to the investment which is distributed trough years of the plant operation. To compare or optimize a plant this parameter should be taken to consideration as well as operating and maintenance cost. for solar systems the LCC is an important part of the cost since a part of operation cost is reduced due to fossil fuel elimination o less fuel consumption.
The NIST Handbook 135 gives a very good overview about life-cycle cost analysis (LCCA): http://fire.nist.gov/bfrlpubs/build96/PDF/b96121.pdf
Thanks to Mr Payman Salami, Mr Jephias Gwamuri, Mr Rasool Bahrampoury, Mr Ahmed Hamza H. Ali and Mr Arnulf Jäger-Waldau for all your views.
LCC manual uploaded by Mr Arnulf will be so useful for the topic.
Thanks to all
Hello Anbu Kumaran,
The following publications include the LCC, and LCOE analysis of solar-PV systems.
Article Photovoltaics energy: Improved modeling and analysis of the ...
Chapter Detailed Techno-Economic Analysis of Solar-PV Projects – Egy...
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