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Solar Electricity Prices
AUGUST 2010
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Solar Electricity Prices

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Price Index Methodology

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Solar Energy Industry Electricity Prices
The solar electricity index below draws exclusively upon the global Solar Module prices in our survey in the high power band exclusively (> 125 Watts). This price segment was down 2 cents per watt in August 2010 (vs July 2010).
The August 2010 survey result saw increasing Inverter, but steady Charge Controller and Battery price indices.
The overall outcome saw the Solar III index down to 19.14 cents per kWh in August 2010.
Solar Electricity Price Index verses US Electricity tariff Price Index (US cents per kilowatt hour)
This table compares Solar Electricity prices (Source: Solarbuzz survey) with US Government Statistics on US Electric Utility average Revenue per Kilowatt hour by Sector. The Solarbuzz Solar Electricity Index is typically updated within 10 working days of the end of each month. The Solar Electricity Index started in July 2000 and in the most recent month is based upon a survey of around 70-80 Companies retailing solar electric products.

cents per kilowatt hour
Residential
Commercial
Industrial
Electricity
Electricity
Electricity
2000
January
7.62
6.79
4.14
February
7.68
6.84
4.15
March
8.06
6.94
4.15
April
8.13
6.94
4.20
May
8.34
7.11
4.40
June
8.56
7.50
4.59
July
8.63
39.85
7.58
29.62
4.76
21.50
August
8.64
39.45
7.68
29.42
4.85
21.34
September
8.50
39.41
7.49
29.30
4.69
21.26
October
8.47
39.53
7.45
29.46
4.57
21.38
November
8.19
39.26
7.15
29.18
4.37
21.18
December
7.79
40.09
7.25
29.74
4.64
21.58
2001
January
7.73
40.57
7.60
30.02
4.96
21.74
February
8.03
40.45
7.55
29.90
5.09
21.66
March
8.19
40.45
7.51
29.86
4.90
21.62
April
8.42
40.69
7.58
30.06
4.92
21.78
May
8.57
40.57
7.48
30.02
4.93
21.74
June
8.82
40.63
7.84
30.03
5.16
21.76
July
40.69
30.09
21.80
August
41.05
30.39
22.01
September
41.09
30.42
22.04
October
41.08
30.42
22.04
November
41.04
30.40
22.03
December
41.13
30.43
22.04
2002
January
41.13
30.43
22.04
February
41.07
30.36
21.99
March
41.07
30.36
21.99
April
41.07
30.36
21.99
May
40.99
30.29
21.94
June
40.80
30.14
21.84
July
40.67
30.03
21.74
August
40.48
29.88
21.65
September
40.39
29.80
21.60
October
40.30
29.72
21.54
November
40.21
29.65
21.48
December
40.21
29.65
21.48
2003
January
40.16
29.61
21.46
February
40.16
29.58
21.44
March
40.06
29.51
21.38
April
40.03
29.49
21.38
May
40.00
29.46
21.35
June
39.91
29.38
21.30
July
39.84
29.33
21.26
August
39.74
29.26
21.21
September
39.74
29.26
21.21
October
39.68
29.21
21.18
November
39.64
29.18
21.15
December
39.55
29.10
21.10
2004            
January
39.55
29.10
21.10
February
39.48
29.05
21.06
March
39.50
29.06
21.07
April
39.44
29.01
21.04
May
39.44
29.01
21.04
SOLAR MODULE INDEX RE-BASED
June
36.35
26.13
20.30
July
36.45
26.21
20.35
August
36.45
26.21
20.35
September
36.49
26.25
20.38
October
36.49
26.25
20.38
November
36.65
26.39
20.49
December
36.66
26.39
20.49
2005            
January
36.75
26.47
20.55
February
36.93
26.62
20.67
March
37.04
26.70
20.75
April
37.13
26.80
20.81
May
37.21
26.90
20.87
June
37.26
26.92
20.90
July
37.30
26.96
20.93
August
37.57
27.21
21.12
September
37.62
27.25
21.16
October  
37.71
27.33
21.20
November  
37.85
27.46
21.32
December  
37.92
27.53
21.37
2006            
January  
38.04
27.61
21.44
February  
38.04
27.61
21.44
March  
38.07
27.65
21.47
April  
38.19
27.77
21.56
May  
38.34
27.89
21.66
June  
38.34
27.89
21.66
July  
38.37
27.92
21.68
INVERTER INDEX RE-BASED
August  
37.34
27.52
21.45
September  
37.34
27.52
21.45
October  
37.34
27.52
21.45
November  
37.34
27.52
21.45
December  
37.30
27.48
21.42
2007            
January  
37.29
27.48
21.41
February  
37.24
27.44
21.38
March  
37.24
27.44
21.38
April  
37.39
27.54
21.45
May  
37.45
27.54
21.46
June  
37.41
27.50
21.42
July  
37.41
27.50
21.42
August  
37.53
27.54
21.46
September  
37.48
27.45
21.39
October  
37.57
27.47
21.40
November  
37.59
27.43
21.37
December  
37.62
27.43
21.37
2008            
January  
37.63
27.40
21.34
February  
37.61
27.36
21.32
March  
37.61
27.37
21.32
April  
37.61
27.33
21.29
May  
37.61
27.33
21.29
June  
37.62
27.33
21.29
July  
37.67
27.38
21.32
August  
37.72
27.42
21.36
September  
37.77
27.44
21.39
October  
37.78
27.49
21.41
November  
37.74
27.45
21.38
December  
37.65
27.37
21.32
2009            
January  
37.48
27.21
21.19
February  
37.40
27.12
21.13
March  
37.15
26.92
20.97
April  
37.01
26.80
20.87
May  
36.88
26.68
20.78
June  
36.59
26.39
20.56
July  
36.36
26.19
20.40
August  
35.89
25.77
20.07
September  
35.61
25.52
19.88
October  
35.48
25.40
19.79
November  
35.35
25.27
19.69
December  
35.27
25.19
19.63
2010            
January  
35.22
25.15
19.59
February  
35.08
25.03
19.50
March  
34.88
24.85
19.37
April  
34.84
24.81
19.33
May  
34.74
24.71
19.27
June  
34.74
24.71
19.27
July  
34.64
24.65
19.20
August  
34.56
24.57
19.14

Electricity Prices Source: US Department of Energy
Solar Electricity Prices Source: Solarbuzz LLC

Points of Note (key assumptions can be found by clicking here)
The Commercial and Industrial Solar Electricity Price Index benefits from discounts against Retail prices that can be secured on volume purchases. Where a Residential Solar Energy System is sold through a large Government or Utility program, it may be possible to secure prices at the Retail level more consistent with the Industrial Price Index column.
No solar energy rebate programs have been built into the data. Many Governments and Utilities have incentives to reduce the cost of solar electricity, recognizing the broad economic benefits of stimulating a self-sustaining local solar energy market.
Financing cost for Solar Energy Systems is assumed to be 5% per annum. These costs are amortized over a 20 year life. This is a significant factor in the Index. Our Economic Payback page demonstrates how solar electricity cost changes with different interest rates.
Note that the Electricity Utilities tariffs are based on US companies only, but the Solar Electricity Index is based upon global solar electric prices. Therefore, the columns are not totally consistent. However, around 80% of the solar prices are from US located companies.
The Index is based upon a climate with 5.5 hours of sunshine average over the year. This is typical of locations like US Sunbelt States, much of Latin America, most of Africa, the Middle East, India and Australia. Mediterranean Countries, followed by Japan and then Northern Europe have progressively lower average hours. Saharan and southern Africa, and the areas centered on Saudi Arabia, central Australia, Peru and Bolivia are higher.
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