Life Cycle Cost Analysis of Residential Grid-Connected Solar Photovoltaic Systems in Florida

Abstract

The main concern for adopting solar PV is the cost of PV systems and their higher unit price than grid price. This study uses four cities in Florida as cases to investigate the life-cycle cost, in the form of equivalent annual cost (EAC), and unit electricity price of various scenarios that apply solar photovoltaic (PV) system technologies to residential buildings. The study shows that currently the EAC of using distributed standalone PV systems increases when more electricity is generated by such systems. The unit electricity price is essentially determined by the aggregate unit price of electricity, which includes two parts, electricity consumption of a residence from both grid and PV systems. When the unit electricity price is less than the unit grid price during the study period, the investment on PV system becomes feasible. However, other factors may have a great impact on the life cycle cost including the cost of batteries, the replacement cycle of batteries and inverters, net metering, and rebate and incentive programs. The analyses in this study suggest that properly handling those factors may lead to a significant cost reduction, which in turn makes PV systems more affordable.