Over at www.solarbuzz.com, they keep abreast of solar prices. With the price of gasoline rising, there certainly will be a point at which solar electricity will compete with diesel power in terms of fuel costs.
The cost of solar power is now given as 5.64 per "watt" where "watts" are the "peak" watts in which solar panels are traditionally sold, noon, cloudless, sunny day. The corresponding price in June of 2004 was 4.99 per "watt." (To find these prices over time, click on the graph of solar prices.)
Thus solar PV prices have risen about 10% in the last year, not too bad compared to crude oil, which was selling for around $41/barrel a year ago and is now around $70/barrel, a 75% increase.
http://www.cbsnews.com/stories/2004/05/15/eveningnews/main617664.shtmlSolar buzz is good enough to give us the cost of solar
energy as opposed to solar power.
According to them, in the United States today, solar electricity costs $0.2166/kw-hr. A kw-hr is 3.6 million joules, meaning that the cost per joule for solar energy produced by PV is 6.02 one hundred millionths of a dollar.
That sounds like a bargain.
However, a gallon of gasoline has 132 million joules of gasoline. Therefore, to produce as much energy as a gallon of gasoline, the solar cell costs $7.94.
And there you have it folks: Replacing a diesel with a solar cell implies a willingness to pay almost $8.00/gallon.
Of course the external cost of diesel is much higher than the external cost of solar PV. According the European Union, as of 2001, the external cost of solar PV electricity was 0.33 Eurocents/kw-hr or (taking the exchange rate of 1.2 USD/Euro) or 1 billionth of a dollar per joule. Carrying this through we see that the fully loaded cost of solar electricity
including external costs, is $8.04/gallon, gasoline equivalent. (The figure is for German production, as described in this link.)
http://www.itas.fzk.de/deu/tadn/tadn013/frbi01a.htmIn this report,
http://www.externe.info/expoltec.pdf, relying on the graphic on page 35, we see that the external cost for a diesel engine (standard thermal, not combined cycle) is about 5 eurocents/kw-hr. Thus the external cost of diesel fuel is $7.98/gallon! Note that this does not include the
internal cost, the cost you actually pay at the pump. Thus if you are paying $3.00/gallon, your total cost to the human race + the people who sell you the gasoline is about $11.00/gallon
http://www.externe.info/expoltec.pdfThus the fully loaded cost of a solar cell is lower than the cost of diesel. However people don't actually directly
pay the external cost. They are perfectly willing to
ignore such costs, to the detriment of their own health and future (and the health and future of their children).
I just thought I'd inject a little of something called
reality.