Sunday, October 26, 2008

California solar subsidies

Mark Henwood recently discussed the economics of the California First Solar (FSLR) FSE Blythe project.

According to Henwood,
"the company is projecting an excellent 27% capacity factor for the project, significantly higher than typical estimates for PV projects. But equally important is the company is pursing the development receiving a price at or below the “market reference price” which is based on a highly efficient modern thermal plant. After accounting for some messy seasonal and time-of-use factors I calculate the project will receive approximately USD 0.14/kWh (subsidy) on average plus a 30% tax credit now that the Emergency Economic Stabilization Act of 2008 passed.

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