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Developing a method to accurately estimate the grid-connected solar PV electricity cost in Hobart-Australia

Solar photovoltaic electricity is more expensive by a large margin compared with conventional electricity at retail level. As a result, general public members do not find the solar PV electricity an attractive option to use for generating a portion of their electricity need. To promote PV electricity utilization and to make it more attractive, Governments of some countries like Germany, Japan, USA, Australia, and etc. have introduced solar PV incentive programs. Most of grid-connected photovoltaic (PV) systems on residential or commercial buildings in these countries are installed by individuals interested in generating part of their electricity emission-free. For some of these people the economics of the PV electricity is likely to be of secondary importance, while majority of them would like to see financial return to become interested to use PV electricity. The objective of this paper is to present the results of a study conducted on the economic aspects of solar PV to estimate the electricity price of grid-connected rooftop PV system under climate conditions and geographical location of Hobart-Australia (at the latitude of between 43° S, and longitude of 147° E to see if the use of PV electricity is attractive and affordable by residential customers. The results of this study will help to determining an appropriate feed-in tariff for solar PV electricity in Hobart-Australia.