Goal: 90º SouthPV Cost Competitive with Fossil Fuels

(5-8¢ kWh Retail by 2015)

PV Value Chain

6. BOS

7. INSTALLER

9. UTILITY 8. OWNER

Market Enabler

End User

50 % System Cost

Danish turbine blades passing through Seattle WA from Denmark

• 100 million in incentive payments over 9 years

• 7 millon people, 3 million homes, 1/6th with suitable rooftops, at $ 18,000 per system

EQUALS $9 Billion Market

Europe’ssolar resource

vs. Washington State’s

Legislative Environment• Sales Tax Exemption

• Net Metering

• Customer sited Solar defined as Conservation

• Si Production Tax Reduction

• State Production Incentive favoring WA Product

• 937 portfolio standard

Why production incentives?

• Proven successful in Germany

• Market Driven

• Low overhead

• Less command and control

• Driven by consumer awareness

$0

$0.08

$0.16

$0.24

$0.32

$0.40

$8 $6 $4 $2 $1

ResidentialCommercial

Cost of power vs. Cost per installed watt

Cost of power in WA US DOE2015 goal

$0

$0.14

$0.28

$0.42

$0.56

$0.70

Base incentive Wa Invert. Wa Inver. & mods

$0.07

$0.07$0.07

$0.36

$0.18$0.18$0.15

Washington Production Incentives

Utility Ownership of Power Conversion Technology

•Utility needs feature set, not the owner

• Buries cost of conversion technology

•Gives utility a service to customer

•Reduces solar installer time on job

•Opens path to utility financing

90º South: Installed per kWh Cost 2006-2015

Modules Racking Inverter LaborCost/kW

Warrantee Life

kWhper year

Cost /kW

Current 4.50 0.60 0.50 3.00 8.6 20 1200 0.65

WA Made

6.5 0 0.25 2.00 8.75 25 1200 0.29

2015 3.50 0 0.15 1.00 4.80 40 1300 0.09

Some kWh cost A\assumptions: Costs in current dollars, inflation and fuel escalation costs negate each other

In the creation of photovoltaics, we have taken sand, the 2nd most common element in the earth’s crust, and created a silent, non polluting energy source, with no moving parts and unprecedented reliability,

Photovoltaics are capable of generating far more energythan used in their production. Their cost will onlydecrease as we implement the technology...

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