ABSTRACT
In cold climates, photovoltaics (PVs) cannot yet compete with the relatively cheap electricity available from the grid; however, they are cost-effective for many applications located off-grid. Where electricity from the grid is readily available, PVs are rarely cost-effective. There may be other reasons to use PV at these sites, such as convictions about the environment or a desire to be autonomous, but on the basis of price alone, PVs are rarely justified. PVs require no fuel and little maintenance, so operation and maintenance costs are very low. To gauge whether PVs are cost-effective in a given application, they must be compared with their competition. Fuel costs are significant and every unit of electricity generated by PVs reduces fuel costs. It does not matter that the PV systems supply almost no power through the winter: they generate savings during the summer. PVs are capital intensive, while competing options are costly to operate and maintain.
