DISCUSSION ABOUT COST OF SOLAR PROJECT:

DISCUSSION ABOUT COST OF SOLAR PROJECT:

Usage of solar energy and especially installation of photo voltaic systems has increased throughout the last years affected by many reasons such as: the increased rate of the price of electricity utilizing fuel and diesel oil, the improvements in techniques used for installing solar systems, increase in efficiency of solar systems etc.

On the other hand, due to the equipment required, PV power generation is more expensive than other resources. Governments are promoting it with subsidies or feed-in tariffs, expecting the development of the technology so that in the near future it will become competitive. Increasing the efficiency in PV plants so as to increase the power generated is a key aspect, as it will increase the incomes, reducing the cost of the power generated, cost approaching the cost of the power produced from other sources.  

This increase in the usage of solar energy has led to a dramatic decrease in the prices of this renewable energy. It is reported that the prices are declining at a rate of 4% per annum and over the last 15 years.   

Although installing a PV system costs a considerable amount of money, these systems can be of economic benefit in the long run. This is due to the fact that a big amount of money is paid once to purchase the system after which the annual costs are limited to maintenance, and upgrading the power delivery system. The annual costs are very small compared to costs you pay for running a diesel engine (maintenance, fuel etc...), and they range between 0.02 and 0.1 cents/kWh. 

In the future, when the prices of fossil fuels rise and the economic advantages of mass production reduce the peak watt cost of the photovoltaic cell, photovoltaic power will become more cost competitive and more common.