Rethinking the term “Solar Systems”

Off-Grid Component Costs over Time

I had a really interesting discussion at work with my boss Vijay Modi and some colleagues about the real costs of an off-grid “solar” systems.  The perception is often that solar panels make up the bulk of the cost of an off-grid system.  The reality, however, with any time horizon over three years is that the cost of batteries will be the biggest determining factor of cost over time.  It is for this reason, that Mark Hankin’s argues that off-grid system should not be called “solar systems” but rather battery-based systems.

If you consider that most off-grid systems in Africa fail after three years, this term is unfortunately even more appropriate.

27 Responses to “Rethinking the term “Solar Systems””

  1. Mark Summer Says:

    Hi Matt,

    Great article to high light some of the different cost components of the system. Just one comment – it seems that the battery size (and therefor cost) is very large in proportion to the solar panel size (and cost). A single 100W solar panel will produce in most regions of east and west Africa about 400W per day (assuming a solar insulation value of 4 to 5 hours). So if I assume a 50% depth of discharge of my battery (which would give me a life span of about 3 to 5 years) I would go with a 80 to 100Ah (1200 Watt capacity, 600Watt usable at 50% DOD) battery rather then a 200Ah battery. That would probably reduce the battery cost over a 20 year life span to less then 50% of the overall cost.

    Otherwise right on the money!

    Mark


  2. mberg Says:

    Mark,

    Think your probably right and the charge controller could probably cost a bit less too. I think the concept still holds true though. Many solar systems in the field I’ve seen are so poorly managed, with discharges often going well past 50%. As a result, I think even a three year battery life is optimistic at times!

    Thanks for your reply!

    Matt


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