DC / AC Ratio Optimization

Gordon Woodcock
SAM Virtual Conference 2013

KACO new energy Inc. 1

Contents
Introduction

Sources

Analysis Setup

Results

Applications

Next Steps

Contents 2
 DC / AC ratio or power ratio compares the
photovoltaic array power to the inverter capacity:
( )
=
( )

Net present value is the summation of a time series

of cash flows brought into the present:

, =

1+
=0

DC / AC Ratio Optimization 3
As DC/AC ratio increases, the inverter is more likely to derate
Effect of DC / AC Ratio on AC Output (100 kW inverter)
140

120

100

80
kW DC kW (1.33 DC / AC)
AC kW (1.33 DC / AC)
60
DC kW (1.16 DC / AC)
AC kW (1.16 DC / AC)
40

20

0
0 5 10 15 20 25 30
25-Jun

DC / AC Ratio Optimization 4
Choosing the ideal DC / AC ratio that maximizes net present value is a
moving target

Max NPV

DC / AC Ratio Optimization 5
What are the significant variables and how do they interact?

DC / AC Ratio Optimization 6
The initial analysis is split into an up front
cost block

DC / AC Ratio Optimization 7
... and a financing block

DC / AC Ratio Optimization 8
Several sources were used to approximate real world scenarios.

DC / AC Ratio Optimization 9
DC / AC Ratio Optimization 10
DC / AC Ratio Optimization 11
DC / AC Ratio Optimization 12
 LA, no financing

Bldr, no financing

ABQ, no financing

HSV, no financing
SLV, no financing

DC / AC Ratio Optimization 13
DC / AC Ratio Optimization 14
Examining how NPV and DC / AC ratio interact provides the following
benefits:

• Inverter manufacturers can build a business case for new product

development around higher power ratios

• Developers and designers can optimize system size based on NPV while
adhering to existing design rules

• Policy makers can see how taxes, incentives, and energy rates shif
economic benefits

DC / AC Ratio Optimization 15
Next steps:

• Perform parametric analysis with additional variables (e.g, module

price, inverter price, discount rate)

• Rank variables by significance, identify correlated factors

DC / AC Ratio Optimization 16