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ECONOMIC ANALYSIS 981<br />

System<br />

design<br />

1<br />

Labor<br />

materials<br />

equipment<br />

facilities<br />

Projected<br />

factor<br />

prices<br />

10<br />

Projected<br />

equipment &<br />

labor<br />

productivity<br />

11<br />

OR<br />

Vendor<br />

prices<br />

3<br />

Cell/module<br />

manufacturing<br />

cost model<br />

Commercial<br />

technology<br />

cost<br />

Module<br />

Projected<br />

technology<br />

cost<br />

Module<br />

Balance-ofsystem<br />

Balance-ofsystem<br />

Projected<br />

BOS cost<br />

12 13<br />

2<br />

14<br />

Economic criteria<br />

(LEC′, NPW′ , IRR′<br />

PB′, DPB′)<br />

Annual<br />

energy<br />

production<br />

[kWh]<br />

5<br />

Levelized<br />

energy cost<br />

(LEC)<br />

6<br />

System<br />

cost<br />

[$]<br />

OR<br />

4<br />

Economic<br />

assessment<br />

Utility<br />

avoided<br />

cost rate<br />

Annual<br />

energy<br />

savings<br />

[$]<br />

8<br />

Project value<br />

(NPW, IRR<br />

PB, DPB)<br />

9<br />

7<br />

Figure 21.2<br />

Economic assessment<br />

Such a modeling procedure is discussed later in this section. For either path, the system<br />

components and materials, aside from the cells and modules, are in general commercially<br />

available and the prices can be obtained from manufacturers and distributors. A limited<br />

number of cells and modules are also commercially available. System components are<br />

particular to the design, and the following list suggests the major components whose<br />

costs are required. Detail part specifications and costs are needed in many cases for<br />

accurate costing.<br />

• PV cells<br />

• PV modules<br />

• Module support structure<br />

• Tracking structure/drives/controls<br />

• Heliostats<br />

• Foundations and structures<br />

• Cooling system<br />

• Interconnection wiring and terminations<br />

• Power-conditioning unit<br />

• Transfer switching and metering<br />

• Substation equipment<br />

• Land

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