Addressing Solar-PV Power Generation: Commercialization Assessment for the US Energy Market

Authors

  • Mahdi Yaqub San Jose State University Charles W. Davidson College of Engineering
  • Shahram Sarkani George Washington University
  • Thomas Mazzuchi George Washington University, Wash- ington, DC.

DOI:

https://doi.org/10.13052/dgaej2156-3306.2812

Keywords:

Levelized cost of energy (LCOE), solar-photovoltaic (PV), investment incentives, technology commercialization, smart grid, commercialization barriers and drivers, technology adoption.

Abstract

Solar-Photovoltaic (PV) utility power is more expensive to produce
compared with conventional sources. Current utility power purchase
agreement policies discourage private investment because far future
cash flow does not add to asset value. This article presents an overview
of a study that assesses the commercialization of PV power generation
in the US energy market. Data analysis substantiates that for PV power
to be competitive with conventional power plants, much lower discount
rates are required during the first half of the PV utility lifecycle, after
which solar PV will have a much lower cost due to a drastic reduction
in the cost of capital. Additionally, the levelized cost of energy analysis
for a longer lifecycle indicates that the utility scale solar PV cost gap can
be bridged. Therefore, this article aims to influence policy makers to in-
troduce long-term power purchase agreements, taking into account the
avoided costs due to the unevaluated quality of long life at anticipated
low operating costs. Furthermore, simulations reveal that the proposed
solar PV self-financing program may be a viable alternative to the cur-
rent government subsidy that lacks an inflow of cash to offset the out-
flow of subsidy payments. Finally, we present selective strategies that
can help drive the commercialization of PV power generation in the US
energy market.

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Author Biographies

Mahdi Yaqub, San Jose State University Charles W. Davidson College of Engineering

Mahdi Yaqub is currently a professor and Pinson Chair at San
Jose State University Charles W. Davidson College of Engineering. His
experience with solar energy technologies comes from both the industry
and academic perspectives. He has worked as a solar PV consultant
since 2007. Before that, he worked for 12 years as senior semiconductor
process development engineer at Intel Corporation. He has a broad tech-
nical background to include a B.S. in Mechanical Engineering, an M.S. in
Computer Engineering, an M.S. in Industrial & Systems Engineering, an
MBA, and D. Engr. in Electrical Engineering from Santa Clara Universi-
ty. His research interests include solar PV, and “smart Grid” information
systems. He can be reached at mahdi.yaqub@sjsu.edu

Shahram Sarkani, George Washington University

Shahram Sarkani joined the George Washington University fac-
ulty in 1986. His administrative appointments at GW include: Chair
of the Civil, Mechanical, and Environmental Engineering Department
(1994–1997); Interim Associate Dean for Research and Development for
the School of Engineering and Applied Science (1997–2001); and Faculty Adviser and Academic Director of EMSE Off-Campus Programs (since
2001). Professor Sarkani has engaged in engineering research, technol-
ogy development, and engineering education since 1980. As author of
over 150 technical publications and presentations, he remains engaged
with important ongoing research in the field of systems engineering
with applications to civil infrastructure. He has conducted sponsored
research with such organizations as NASA; the National Institute of
Standards and Technology; the National Science Foundation; the U.S.
Agency for International Development; and the U.S. Departments of In-
terior. Professor Sarkani holds the Ph.D. in Civil Engineering from Rice
University, and B.S. and M.S. degrees in Civil Engineering from Louisi-
ana State University.
He is a Registered Professional Engineer. He can be reached at sar-
kani@gwu.edu

Thomas Mazzuchi, George Washington University, Wash- ington, DC.

Thomas Mazzuchi received a B.A. (1978) in Mathematics from Get-
tysburg College, Gettysburg, PA, an M.S. (1979) and a D.Sc. (1982), both
in Operations Research, from the George Washington University, Wash-
ington, DC. Currently, he is a Professor of Engineering Management and
Systems Engineering in the School of Engineering and Applied Science
at the George Washington University. He has also served as Chair of
the Department of Operations Research, Chair of the Department of
Engineering Management and Systems Engineering, and Interim Dean
of the School of Engineering and Applied Science. Dr. Mazzuchi has
been engaged in consulting and research in the area of risk analysis for
over 25 years. He served for 2.5 years as a research mathematician at the
international operations and process research laboratory of the Royal
Dutch Shell Company. During his academic career, he has held research
contracts in development of testing procedures for both the U.S. Air
Force and the U.S. Army, in spares provisioning modeling in mission as-
surance with NASA. He can be reached at mazzu@gwu.edu.

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Published

2013-01-09

How to Cite

Yaqub, M. ., Sarkani, S. ., & Mazzuchi, T. . (2013). Addressing Solar-PV Power Generation: Commercialization Assessment for the US Energy Market. Distributed Generation &Amp; Alternative Energy Journal, 28(1), 56–80. https://doi.org/10.13052/dgaej2156-3306.2812

Issue

2013: Vol 28 Iss 1

Section

Articles