What is solar power systems prices ?
Solar power systems prices are the first consideration when someone want to start a solar power for his or her own home. Firstly, we need know the working principle of on-grid solar pv system and what accessories should be used.
1. The working principle of on-grid solar pv system.
High performance solar panel array are installed on rooftop by brackets to fix, they are series connection and parallel connection integrated. The solar panel array generates direct current by absorbing sunlight radiation, the DC would be converted into AC by solar inverter, to connect with public grid.
2. System Constitution.
Solar panel array, solar controller, solar inverter, brackets, wiring for DC, wiring for AC, Subsidies electric meter, Two-way meters.
3. Estimate Price.
The approximate price of solar power system is US$1.2/W ~ US$2.0/W in market. Usually, a home installs 5KW solar power generation system, cost is about US$6000 ~ US$9000. If to install 3KW solar system, cost is about US$5000 ~ US$6000. Take an example (in China), a home install 5KW solar system, the cost of solar power system including solar panels, inverter, controller etc is about US$5500, the cost of installation from professional EPC company is about US$500, the total cost is US$5500+US$500=US$6000. When to install solar power system, it is better to look for high cost performance solar products, do not always look for low price, because you need power from solar power for 25 years or more long.
4. Income of home solar power system.
1). Government Subsidy: The subsidy is about US$0.062/KWh in China. Regardless of selling power to public grid or for yourself to use, subsidy would be given to you as long as your power is generated by solar power.
2). Saving electric cost: Electricity powered by solar power is free, no need pay any cost for electricity.
3). Selling power to government: You can sell superfluous electricity to government, the price of electricity sold by solar power is about US$0.085/KWH (different district has different price policy).
5. ROI (Return on Investment).
Take China as an example: The investment is about US$6000 to install a 5KW solar home system. Treat the efficient average sunlight as 4 hours a day in China, 5KW*4h=20KWH, namely, it can generate 20KWH each day, generating 7300KWH each year. If its 30% is used for consumption of home appliances, 70% is selling to government,
Income of subsidy: 7300KWH*US$0.062/KWH=US$452.6;
Saving electricity: 7300KWH*30%*US$0.075/KWH=US$164.25;
( Price of electricity is about US$0.075/KWH in China)
Income of selling to government: 7300KWH*70%*US$0.085/KWH=US$434.35.
Total income: US$452.6+US$164.25+US$434.35=US$1051.2, namely, the income of one year is US$1051.2. Your investment is US$6000, US$6000/US$1051.2=5.7, it indicates that investor just need about 6 years to take back his investment. Usually, solar power can be used for 25 years, investor can get net revenue for 19 years if taking back investment after 6 years,
that is the reason why solar power system are very popular in China. Don’t have any investor said solar power systems prices are high after his or her making detail calculation.
The ROI is different in different Countries, it depends on government’s policy. If you want to become an solar investor, you should clearly know your government’s policy for solar power system, so that you can choose different investment portfolio.
—–Bingsolar Power, 30th, June, 2017
