Cost Factors
          More industries and businesses have started harvesting solar power to supply a portion of their energy needs. some countries have even taken steps to encourage use of solar power. For example, the US government gives a 10% Energy-tax credit for those businesses that invest in solar energy property.
          Solar / PV systems are the more efficient means of providing power to regions which are off the grid, and especially regions where wind, hydro-electric and other systems wouldn't be efficient. The initial investment in solar energy conversion systems are considerable. But once installed, the solar energy systems provide a lot of savings in electrical energy bills. The savings are larger when these systems are used in a big scale, of course with a higher investment. 
          The cost of the solar cell increases with its efficiency. A highly efficient cell, would have to be highly pure and in turn cost around 3 times higher than a cell with low efficiency. Usually, Home users (who make up around 60-70% of the global installed capacity of solar power), install a small capacity system, to power a small portion of their energy needs. Then, whenever possible they add-up more capacity to their existing installation, by adding more solar panels to the array.

          The cost of the energy generated from a solar panel, depends on two factors.
                    Light energy available
                    The cost of the solar panel.

Average Cost/watt-hour = Cost of solar panel / Average energy drawn per hour

           If Avg.energy drawn from a PV system is 2000W per hour. Assuming the cost of solar panel as $500, cost/watt-hour would be cost/watt-hour = 500 / 2000 = $0.25 /Watt Hr.

            With more manufacturers, growing demand, and newer technologies to produce pure cells at less cost, the cost of the energy generated may go down gradually, enabling more people to use solar energy converters. while solar cells are available in readymade forms, solar panels are made (especially large panels) only after the requirement arises.
            Since a solar panel is an array of solar cells, manufacturers analyse the light conditions at the place of installation, calculate the average efficiency required from a cell for a particular number and size of panels, and finally get the cell with that efficiency to prepare the modules/panels.

What is BOS ?
           BOS stands for "Balance of Systems." This refers to everything, all costs, in a PV system except for the PV modules (design, land, wiring, electronics, loads/appliances).

What is Net Metering ?
            Utilities in some american states offer net metering programs, which make it easy for customers to install solar electric systems at their homes or businesses. In a net metering program, customers feed excess power generated by their solar equipment during the day into the utility’s electrical grid for distribution to other customers.
            Then, at night or other times when the customer needs more power than their system generates, the building draws power back from the utility grid. Net metering allows customers to install solar equipment without the need for expensive storage systems, and without wasting extra power generated when sunlight is at its peak.
            Such programs also provide a simple, standardized way for customers to use solar systems while retaining access to utility-supplied power. Most net metering programs keep track of power generation and consumption using only the electric meter already connected to the customer’s building; the meter literally runs backward when power is being fed from the solar system into the grid, and then runs forward again when power is drawn from the utility grid.
            The customer is billed only for the net amount of electricity that is drawn from the utility. Some utilities even go further, by providing customers a half cent above the retail price for power they generate from solar. Net metering works well with the latest generation of PV systems, which have sophisticated electronic power controls. Modern PV systems provide electricity exactly matched to the utility’s voltage and frequency.
            The line connecting the customers solar energy generator is shut off automatically when the utility power supply fails, so that they don't bother electric line repair crews.

What is the Incentive Program ?
            Again, Utilities in some american states offer incentives for solar energy development. Some offer low-interest loans and substantial tax credits for solar systems bought by businesses, individuals or governments.
            Some offer technical assistance for setting up solar systems, and Montana and Oregon exempt non-commercial solar systems from property tax assessment. And some offer technical assistance, no-interest loans and cash discounts for solar water heating systems.
            There are many more offers like this.
            People drawing power from such utility grids, are advised to contact their utility grids, before they install solar energy systems in their houses or businesses. Costs ----- PV cells power emergency call box telephones for stranded motorists.

Typical costs
            Homes in rural areas can use PV cells for electricity -- storing power in batteries in case of cloudy weather. A typical installation to power a home is about $30,000 to $40,000. California is also one of the world's largest manufacturers of solar cells.

Solar power stats
            The world's total production of solar cells in 1993 was 60 MW. Of this, nearly 16 MW is produced by California companies (roughly 26.5% of all the PV cell production).

            California currently has more than 350 megawatts (MW) of solar electric generating capacity. These PV cells are used both for consumer and commercial use -- but most are not connected to regular electrical power grids (the wires running from power plants to homes/businesses). A total of 15% of all the PV cells made in the world goes into solar-powered calculators!

The cost of solar cells has dropped dramatically since the were first invented by the Bell Laboratories about 40 years ago. (While the photovoltaic effect was first observed by Edmund Becquerel, solar cells were invented only in Bell Laboratories.)

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