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25 July 2006

Incentives make all the difference...

I came across this story in June 2005 issue Waterworld magazine.  I followed the link to Atlantic County Utilities Authority website where I found this press release ( flaky link here's the text) and did a little math on what I found.

The installation cost $3.25 million, for a 500kW system

The unit cost was $6.50/Watt

There was a 1.9 million rebate (58%) from the state bringing the cost down to $1.35 million

That dropped the unit cost to $2.70/Watt

The system produces 135,000 kWHr ( they said kilowatts, tisk, tisk, tisk, back to school with them) which the equated to 135 SRECs.  A quick glance shows the RECs they are selling are Megawatt-hour (MWHr) denominated, not kilowatt-hour (kWHr), but the price is proportionately larger by a factor of 1000, so it's a wash.

But look at that $237.65 / MWHr price... That's $0.23765 per kWHr... WOW!!! we've been quoting benefits at $0.047 per kWHr or $47/MWHr.  The market is paying FIVE times more than we thought!  (That's why I cut and paste this story.)

So 135 SRECs at $237.65 each is $32082.75 Very nice!!! Congratulations to ACUA.


Just for grins, imagine the ACUA used the same footprint for a Solar & Thermal System, the power would be about double or ~ 1MW, the cost of that system would have been about $2 million a savings of $1.25 million, an notice the rebate... that was probably based on system capacity, but it's clearly conceivable that the ACUA might have got the system for oh let's say 42% of $2MM or $840,000.00

And that rebate check, well with two times the capacity, it would double too. I'd call that the $64000 answer.




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