Abstract
Solar-Photovoltaic (PV) utility power is more expensive to producecompared with conventional sources. Current utility power purchaseagreement policies discourage private investment because far futurecash flow does not add to asset value. This article presents an overviewof a study that assesses the commercialization of PV power generationin the US energy market. Data analysis substantiates that for PV powerto be competitive with conventional power plants, much lower discountrates are required during the first half of the PV utility lifecycle, afterwhich solar PV will have a much lower cost due to a drastic reductionin the cost of capital. Additionally, the levelized cost of energy analysisfor a longer lifecycle indicates that the utility scale solar PV cost gap canbe bridged. Therefore, this article aims to influence policy makers to in-troduce long-term power purchase agreements, taking into account theavoided costs due to the unevaluated quality of long life at anticipatedlow operating costs. Furthermore, simulations reveal that the proposedsolar PV self-financing program may be a viable alternative to the cur-rent government subsidy that lacks an inflow of cash to offset the out-flow of subsidy payments. Finally, we present selective strategies thatcan help drive the commercialization of PV power generation in the USenergy market.
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