Utility-interconnected photovoltaic systems reaching grid parity in New Jersey

Locational marginal pricing (LMP) data available from PJM makes an in-depth analysis of the true worth of photovoltaic electricity generation possible. This paper provides a comparison of commonly used average retail electricity prices and average prices of electricity determined by the combination of empirically collected energy generation created by two photovoltaic systems and the available PJM LMP costs for two regions. The authors have found that while average supply-side generation costs range in the 5-6??? per kilowatt-hour, generation costs during times in which two PV systems operated were as high as 9-12??? per kilowatt-hour. Weighted average electricity prices that take the times into consideration at which the electric energy is generated, as well as a recent drop in prices for installed systems, has pushed photovoltaics across the threshold to be well on their way to becoming an inexpensive means of generating electricity.