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A facility manager is exploring the options to install an electricity generator at a large building,...

A facility manager is exploring the options to install an electricity generator at a large building, and needs help to compare Solar PV system or Diesel Generator. The daily load for this building (no monthly or seasonal variation) is 550kWh. The key criteria for the manager to make a decision on the type of technology is the cost of electricity.

Compare the cost of electricity of these two technologies based on the following data.

• Solar PV • Capital cost (installed): A$1.00/W • Inverter: A$200/kW • O&M cost: 0.5% of capital cost per year • Inverter lifetime: 10 years • Capacity factor: 23% Project life: 20 years Discount rate: 10% • Diesel generator • Capital cost (installed): A$600/kW • O&M cost: 12.5% of capital cost per year • DG lifetime: 10 years • Capacity factor: 19%

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