Energy Costs Per Watt – How To Calculate It?

How could we show the true unit cost of energy per watt for the end customer?

This exercise could become extraordinarily complicated. I would suggest to keep things simple and to keep an apples-to-apples comparison, that we break it down this way, as the sum of:
1. The cost of manufacturing the energy producing item (nuclear, coal plant, solar, wind, etc..), as represented by depreciable basis.
2. The cost of installation at the point of use.
3. The operating cost on a daily basis.
4. The cost of maintenance and upkeep.
5. The cost of using the electricity generated or the cost of storing it, or the cost of returning it to the grid.
I know this leaves some things out, but it is enough to get a good handle on things and to make fair comparisons.

Last Updated On:16th August 2012

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