Micro-tracked CPV, in which cells move relative to fixed concentrating optics, allows CPV to be deployed in the same manner as fixed PV modules. Behind-the-meter applications in locations where there is a land/roof area cost for the space occupied by the modules confers a cost advantage to CPV compared to PV. The primary objective of the present paper is to estimate target prices below which CPV has a competitive advantage over PV. We analyse PV and CPV microgrids, optimizing the scheduling of power into and out of the battery in order to achieve the maximum savings compared to purchasing grid power. We then choose the battery capacity that maximizes the internal rate of return (IRR) on the PV microgrid. The CPV target price is the price that gives a CPV IRR that matches the PV IRR. The target CPV prices obtained are found to depend on the land price and on the ratio of CPV to PV annual energy yield (REY), but are insensitive to battery prices, load profiles, current electricity tariffs and future trends in electricity tariffs. Modesto, CA has a REY of 1.

No abstract

The Ottawa Renewable Energy Cooperative is considering installing solar modules on the roofs of two buildings while they stay connected to the public electricity grid. Solar power produced over their own needs would be sent to the public electricity grid for a credit on their electricity bill. When they need more power than they are generating, these buildings would purchase electricity from the grid. In addition to paying for the electricity they purchase, they would be subject to a “demand charge” that applies each month to the hour during which their consumption is at a peak for that month. Any electricity consumed during that peak hour would be charged at a rate about 100 times the rate for other hours. The case addresses three questions: (1) Is it profitable for these organizations to install solar on their roofs? (2) Can profitability be increased by adding a battery? and (3) How sensitive is profitability to uncertainty in future electricity prices? The case shows how the answers to these questions depend on the profile of hourly electricity consumption during the day, which is very different from one building to the other.

The Ottawa Renewable Energy Cooperative is considering installing solar modules on the roofs of two buildings while they stay connected to the public electricity grid. Solar power produced over their own needs would be sent to the public electricity grid for a credit on their electricity bill. When they need more power than they are generating, these buildings would purchase electricity from the grid. In addition to paying for the electricity they purchase, they would be subject to a “demand charge” that applies each month to the hour during which their consumption is at a peak for that month. Any electricity consumed during that peak hour would be charged at a rate about 100 times the rate for other hours. The case addresses three questions: (1) Is it profitable for these organizations to install solar on their roofs? (2) Can profitability be increased by adding a battery? and (3) How sensitive is profitability to uncertainty in future electricity prices? The case shows how the answers to these questions depend on the profile of hourly electricity consumption during the day, which is very different from one building to the other.