How do I estimate the true cost of wind and solar energy?

To estimate the true cost of wind and solar energy when redundancy requirements are included, we must consider the following additional costs: Overbuild of Capacity: Since solar and wind have lower capacity factors, more generation capacity must be installed to match the output of coal or natural gas plants.

What determines the value of wind and solar power?

Since the price of electricity varies over time, but wind and solar plants (without storage) cannot choose when to generate, the value of wind and solar power will be based on when the wind blows or sun shines. In addition, generation revenues depend on location—for both the quality of the wind or solar resource and the power prices in the region.

What is a grid-connected photovoltaic (PV) energy estimate?

Estimates the energy production of grid-connected photovoltaic (PV) energy systems throughout the world. It allows homeowners, small building owners, installers and manufacturers to easily develop estimates of the performance of potential PV installations. Operated by the Alliance for Sustainable Energy, LLC.

What are the integration costs of a wind or solar plant?

Integration costs may be incurred by the wind or solar plant, but are often borne by existing generators or elsewhere in the system. While dispatchable plants also impose integration costs, the integration costs of intermittent plants become significantly larger with increasing intermittent generation on the grid.

How much does solar PV cost?

Overbuild Factor: Solar PV has a capacity factor of 20–30%, meaning you need to install 3–5 times more capacity to achieve the same annual output as a coal or natural gas plant with a 60–80% capacity factor. This increases the effective cost by 3x to 5x, resulting in $105–$275 per MWh ($0.105–$0.275 per kWh).

What is the intermittency of wind and solar power?

The intermittency of wind and solar power also affects the costs of their integration into the grid. Integration costs may be incurred by the wind or solar plant, but are often borne by existing generators or elsewhere in the system.