|
Input
|
Description
|
Solarbuzz Price
Index
|
| Price of the Solar
Energy System |
a |
| Solar Module |
These prices are
usually quoted in Price per Watt Peak (this is a standardized
measure, which does not take account of local solar conditions). |
These prices vary
in line with the movement in the high power basket of Solar Module
prices on our monthly survey. |
| Other major Components
(known as "balance of systems") |
The actual electrical
components will depend upon:
- the power (known as "load") required
- whether AC or DC power is required
- whether the system needs to provide power even during times
that the electricity grid fails. |
These prices vary
in line with the movement of the appropriate basket of Component
prices on our monthly survey. |
| Other electrical |
Wiring, disconnects
and other small electrical components are required. |
A standardized factor
is used. This is a very small proportion of the total index. |
| Solar Equipment
structure |
This is the physical
structure on to which the solar modules will be mounted. |
We use a standardized
percentage of total cost, but this percentage varies according
to size of system and application type. |
| Assembly and Installation
cost |
The time required
to install a system will depend upon its size and installation
location. |
A fixed time factor
is included, but labor rate variations are accounted for according
to installation Country. |
| Transportation |
This is the transportation
of the equipment from the manufacturer or the installer to the
customer site. |
This is rarely a
significant cost, but a 2% fee on total cost is included in the
index. |
| Taxation |
Equipment is often
subject to local country/region taxes. |
The index excludes
taxation. |
| Total Installed
Price of the Solar Energy System |
Calculated by
the addition of the above rows |
| Ongoing Maintenance |
Ongoing maintenance
of solar systems is typically minimal. However, some of the "balance
of systems" equipment may need replacement. |
A small fixed % cost
over and above the installation price is included to take account
of these factors. |
| Output of the
System |
a |
| Watt Peak (Direct
Current) |
As solar modules
(representing around 50% of the installed cost) are sold in Watt
Peak, the first output number is the Watt Peak. This represents
the power rating of the module under standard conditions. |
As solar modules
(representing around 50% of the installed cost) are sold in "Watt
Peak" units of power, the first output calculation is the
Watt Peak, which is simply the nominal power size of the solar
system (Watt peak is a "direct current" measure). |
| Watt Peak (Alternating
current) |
Some power losses
occur when converting direct current (DC) into alternating current
(AC). |
A fixed factor of
10% line losses are assumed. This factor is excluded from direct
current, off-grid systems. |
| Sunlight conditions |
Each location has
its own solar conditions with varying intensity and hours of sunlight.
|
For the purposes
of the indices, we use a high solar site (5.5 average sun-hours
at standard intensity) and a low solar site (2.5 average sun-hours).
The solar module installation location is assumed to be free of
shade. |
| Life of Solar
Energy System |
Most solar modules
are warrantied for 20 years or more. Some power loss (usually
guaranted at a maximum of 20% over the 20 year life) establishes
the "guaranteed" power output. |
This is a fixed factor
in the index for a given location. |
| Kilowatt Hours
Generated |
This is the energy
output represented by the power rating (DC or AC Watt peak) multiplied
by the average sun-hours per day multiplied by 365 (days) for
each year of operation. |
This is a fixed factor
in the index for a given location. |
| Total Kilowatts
Hours Generated |
The above calculation
provides the total kilowatt hours generated over the life of the
Solar Electric System |
Price per Kilowatt
hour
(before financing) |
Mathematical calculation
based upon total installed cost plus maintenance premium. Divided
by total Kilowatts generated divided by 175,200 (number of hours
over 20 years) |
| Financing charges
(or Cost of Capital) |
As the cost of the
system is paid upfront and the solar electricity is received over
20 years, a financing charge is calculated. |
A standard financing
charge is assumed. The index uses 5% cost of capital. We will
advise if this rate changes and will provide a re-base for comparative
purposes. |
Price per Kilowatt
hour
(after financing) |
The Index is based
upon this calculation |
