PV’s levelized cost drops to 11.5 cents per kWh with incentives
An analysis by Don Wichert, Director, Renewable Energy Services,
Wisconsin Energy Conservation Corporation (WECC):
My recent (simplified) levelized cost analysis for commercial PV, at $5,252 a kW installed in WI, over 25 years and with a 5% loan (no shading, no maintenance, no output degradation), is 13.8 cents per kWh as shown on the slide below. This includes a 56% reduction in the installed price due to the ITC and depreciation. With the previously available $600 a kW Focus base incentive, the levelized cost drops to 11.5 cents per kWh.