Solar-power Costs

Some people have a flawed concept of solar energy. While it's true that sunlight is free, the electricity generated by PV systems is not. As you can see from our discussion of a household PV system, quite a bit of hardware is needed. Currently, an installed PV system will cost somewhere around $9 per peak Watt. To give you an idea of how much a house system would cost, let's consider the Solar House -- a model residential home in Raleigh, North Carolina, with a PV system set up by the North Carolina Solar Center to demonstrate the technology. It's a fairly small home, and it is estimated that its 3.6-kW PV system covers about half of the total electricity needs (this system doesn't use batteries -- it's connected to the grid). Even so, at $9 per Watt, this installed system would cost you around $32,000.

That's why PV is usually used in remote areas, far from a conventional source of electricity. Right now, it simply can't compete with the utilities. Costs are coming down as research is being done, however. Researchers are confident that PV will one day be cost effective in urban areas as well as remote ones. Part of the problem is that manufacturing needs to be done on a large scale to reduce costs as much as possible. That kind of demand for PV, however, won't exist until prices fall to competitive levels. It's a Catch-22 situation. Even so, demand and module efficiencies are constantly rising, prices are falling, and the world is becoming increasingly aware of environmental concerns associated with conventional power sources, making photovoltaics a technology with a bright future.

For more information about solar cells and related topics, check out the links on the next page.