I just gave distribution losses as one cost of central generation, there is also all the infrastructure of the power company that has to be paid for, including profits, which is why the cost to the consumer is far higher than the cost of generation.
In the US the average cost of a kWh is ~12 cents.
Using those Sun panels I linked to earlier at $373 for a 210 Watt panel, to configure a house in the South West to provide an average of 760 kWhs in the summer, takes 21 panels ($7,800), plus two inverters and installation, wiring and mounting rack costs of another $8,800, for an installed cost of ~$12,000 (with 30% tax credit), the system is good for 25 years or more.
But they will displace about $92 per month of electricity in the first year (and electrical rates go up over time, about 2% per year) so over the first 20 years the system will avoid electrical costs of $26,856 and with 10 year, 5% financing of the whole installation the monthly cost of the system will run about $30 more than the cost of electricity for 10 years and then start saving, such that after 20 years the PV system will have had a total cost including interest and maint (buying 2 new panels after 10 years to allow for the slow degradation of output for instance) of $16,250 or a savings of a bit over $10,000.
Not a bad deal actually.
Take away the 30% tax credit and the numbers aren't as good of course, as your total cost is $21,000, but the tougher problem is your monthly cost for electricity for the first 10 years is about double your normal rate.
So in reality, without the 30% tax credit, the cost of PV panels need to drop to around $1 per watt, but at that point nearly everybody in the Southwest should consider installing as many panels as they can afford.
Note, this analysis assumes you use all the electricity you generate or you can "spin the meter backward" when you produce more power than you need (which currently is pretty common). Lose that capability though and then you don't want to install more wattage then you use on average during the daylight hours.
Arthur
In the US the average cost of a kWh is ~12 cents.
Using those Sun panels I linked to earlier at $373 for a 210 Watt panel, to configure a house in the South West to provide an average of 760 kWhs in the summer, takes 21 panels ($7,800), plus two inverters and installation, wiring and mounting rack costs of another $8,800, for an installed cost of ~$12,000 (with 30% tax credit), the system is good for 25 years or more.
But they will displace about $92 per month of electricity in the first year (and electrical rates go up over time, about 2% per year) so over the first 20 years the system will avoid electrical costs of $26,856 and with 10 year, 5% financing of the whole installation the monthly cost of the system will run about $30 more than the cost of electricity for 10 years and then start saving, such that after 20 years the PV system will have had a total cost including interest and maint (buying 2 new panels after 10 years to allow for the slow degradation of output for instance) of $16,250 or a savings of a bit over $10,000.
Not a bad deal actually.
Take away the 30% tax credit and the numbers aren't as good of course, as your total cost is $21,000, but the tougher problem is your monthly cost for electricity for the first 10 years is about double your normal rate.
So in reality, without the 30% tax credit, the cost of PV panels need to drop to around $1 per watt, but at that point nearly everybody in the Southwest should consider installing as many panels as they can afford.
Note, this analysis assumes you use all the electricity you generate or you can "spin the meter backward" when you produce more power than you need (which currently is pretty common). Lose that capability though and then you don't want to install more wattage then you use on average during the daylight hours.
Arthur