Well they've had a drop in manufacturing costs of 13% in less than 12 months. This is perhaps partially explicable in terms of the declining cost of silicon which has apparently gone from $450/kg in 2008 to $100/kg today. The main problems with using silicon were difficult manufacturing processes and shortage of refined silicon. As seen above, thin film solar technologies are now beginning to use new manufacturing techniques which feature super thin silicon wafers as well as panels which don't use silicon at all. There is a battle on between the emerging technologies and refinements based on silicon. Silicon is the second most abundant element of the earths crust, so it has some advantages over some of the new technolgies if it can get the cost per watt down.
As it happens, I have contacted solar cell manufacturers in several different countries over the last year while investigating the economics of this potential business. The cheapest retail price of a silicon cell I was offered was $1.10 per watt. Why FirstSolar would retail their cells at $2.50-$3.00 I am not sure, other than that this is simple market forces - they are trying to get the highest price they think the retail market can bear and perhaps riding on the fact that their product is new and unique.
So where we are is the equivalent of a 1980s mobile phone in comparison to the price and efficiency of a phone today, except that making that transition in the case of solar may take half the time or less than mobile phones did to evolve.
The tendency toward lower manufacturing cost is unstoppable and rapid. The retail cost will follow. The wholesale cost is already 50% or lower of the retails cost, I know because one can buy systems for around $2.50 a watt but I was offered $1.10 per watt on the basis of an initial order of 1000 cells. If i can barter the price down for a measly 1000 cells I think the government could negotiate much better economies of scale on a 220km long installation. And this was with silicon based cells not printed thin-film cells.
The installation costs including labour and ancillary equipment would certainly double or treble the price, but it will be a low price very soon and installing these things along something like a railway line should drop in price too once a system is set up for doing it. As for your obsession with distribution costs, there is a distribution grid all ready all over the country and which the cork-dublin railway line passes no doubt at numerous points. Whatever the costing is for the aims eventually decided upon, I doubt very much that it will operate as the insuperable obstacle you seem to want to make it out to be. If thin film solar panels drop in price to $0.20 over the next 10 years and increase in efficiency to 20% then you can produce 600MW for around 90 million dollars. If the retail price is double that at 180 million dollars then it's still 120 million dollars cheaper than it was to build a 600MW gas fired station 6 years ago. Double again and the prices are almost comparable.
The commercial, environmental and scientific momentum is inexorably with solar.
However I am not an electrician and I find the electrical units confusing. It wouldn't surprise me if some conversion from kWh to Watts to MW yielded a number 10 times less than the power outputs I've quoted. If that were the case then the cost per watt remains the same and the area required multiplies. Then it's a question of how serious the market forces are in competing towards lower pricing and how serious governments are about the issue of global warming.



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