The Robot Report

  • Home
  • News
  • Technologies
    • Batteries / Power Supplies
    • Cameras / Imaging / Vision
    • Controllers
    • End Effectors
    • Microprocessors / SoCs
    • Motion Control
    • Sensors
    • Soft Robotics
    • Software / Simulation
  • Development
    • Artificial Intelligence
    • Human Robot Interaction / Haptics
    • Mobility / Navigation
    • Research
  • Robots
    • AGVs
    • AMRs
    • Consumer
    • Collaborative Robots
    • Drones
    • Humanoids
    • Industrial
    • Self-Driving Vehicles
    • Unmanned Maritime Systems
  • Business
    • Financial
      • Investments
      • Mergers & Acquisitions
      • Earnings
    • Markets
      • Agriculture
      • Healthcare
      • Logistics
      • Manufacturing
      • Mining
      • Security
    • RBR50
      • RBR50 Winners 2025
      • RBR50 Winners 2024
      • RBR50 Winners 2023
      • RBR50 Winners 2022
      • RBR50 Winners 2021
  • Resources
    • Automated Warehouse Research Reports
    • Digital Issues
    • eBooks
    • Publications
      • Automated Warehouse
      • Collaborative Robotics Trends
    • Search Robotics Database
    • Videos
    • Webinars / Digital Events
  • Events
    • RoboBusiness
    • Robotics Summit & Expo
    • DeviceTalks
    • R&D 100
    • Robotics Weeks
  • Podcast
    • Episodes
  • Advertise
  • Subscribe

The Absolute Value of Technology – Part 2

By Steve Meyer | February 22, 2009

So continuing on a theme, there are many ways to describe value.   In order to measure the value of technology, we must measure it’s cost performance.  There are many elements of the value proposition that need to be considered, such as cost to acquire the technology, installation costs, maintenance cost and life expectancy.  And the benchmark for cost performance is the market price for the old technology.

So taking electricity, for example, any comparison of new technology to deliver electric power must be compared with the present cost to deliver power.  If coal fired powerplants can deliver power, with all of the costs already accounted for, at 10.6 cents per kWh, then any new method must achieve that cost performance or customers must be prepared to pay more for electricity.  If CO2 reduction or eliminating coal combustion pollution are sufficiently high priorities in the consumer’s mind, then electricity will simply have to cost more.  

From my minimal involvement in the utility industry, I know there has been serious effort dedicated to reducing pollution from coal-fired plants.  Soot and particulates are precipitated in a variety of techniques and “scrubbers” are used to further clean contaminants from the air.  Not perfect, but significantly better than the levels 20 years ago.

Among the alternatives, solar panels (or photovoltaic panels) are a clean method for generating electricity.  No combustion, super clean.  They are typically 11-12% efficient and large panels that generate 250W typically cost around $600.  One of the difficult issues in adopting solar power is that the 250 Watt rating is a capacity, not actual performance.  The maximum output of the panel is based on being perpendicular to the sun.

Tracking increases power output by keeping the panel in the ideal orientation to the sun. But trackers cost thousands of dollars and require some maintenance over the 20 year life expectancy of the solar panel.  If a large tracker costs $7500 and will handle mounting 20 panels, it has a direct cost of $375 per panel.  So the solar panel and tracker together are $975 to purchase.

There are 4465 hours of daylight per year here in Austin Texas.  With perfect sunlight all year, a 250 Watt solar panel might produce 1116 kWh which have a value of $118.30 at the rate of 10.6 cents/kWh that the utility bills in my neighborhood. Of course, sunlight is not always available, so the actual value of power generated might be quite a bit lower, like a third less.  And if you don’t clean your panels regularly the dirt accumulation will reduce output as well.

But even taking the optimistic, if somewhat unrealistic, maximum value of $118 for the revenue generated by a solar panel per year, the return on investment looks like 8 years not including the maintenance costs.  The opportunity to reduce operating costs with solar power is quite attractive. But the companies, like British Petroleum and Wal Mart, who are making the switch are able to do so based on the long term return on investment to reduce their operating costs.  This is not at all the same as claiming that solar power is reaching parity with the cost for utility power.

About The Author

Steve Meyer

Tell Us What You Think! Cancel reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Related Articles Read More >

SUNY Adirondack to launch new program in mechatronics
Eplan Data Portal migrates to Azure
Transcript: How mechatronics is taking additive manufacturing to the next level
Is there a need for closed loop feedback greater than 20,000 CPR?

RBR50 Innovation Awards

“rr
EXPAND YOUR KNOWLEDGE AND STAY CONNECTED
Get the latest info on technologies, tools and strategies for Robotics Professionals.
The Robot Report Listing Database

Latest Episode of The Robot Report Podcast

Automated Warehouse Research Reports

Sponsored Content

  • How to Set Up a Planetary Gear Motion with SOLIDWORKS
  • Sager Electronics and its partners, logos shown here, will exhibit at the 2025 Robotics Summit & Expo. Sager Electronics to exhibit at the Robotics Summit & Expo
  • The Shift in Robotics: How Visual Perception is Separating Winners from the Pack
  • An AutoStore automated storage and retrieval grid. Webinar to provide automated storage and retrieval adoption advice
  • Smaller, tougher devices for evolving demands
The Robot Report
  • Automated Warehouse
  • RoboBusiness Event
  • Robotics Summit & Expo
  • About The Robot Report
  • Subscribe
  • Contact Us

Copyright © 2025 WTWH Media LLC. All Rights Reserved. The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of WTWH Media
Privacy Policy | Advertising | About Us

Search The Robot Report

  • Home
  • News
  • Technologies
    • Batteries / Power Supplies
    • Cameras / Imaging / Vision
    • Controllers
    • End Effectors
    • Microprocessors / SoCs
    • Motion Control
    • Sensors
    • Soft Robotics
    • Software / Simulation
  • Development
    • Artificial Intelligence
    • Human Robot Interaction / Haptics
    • Mobility / Navigation
    • Research
  • Robots
    • AGVs
    • AMRs
    • Consumer
    • Collaborative Robots
    • Drones
    • Humanoids
    • Industrial
    • Self-Driving Vehicles
    • Unmanned Maritime Systems
  • Business
    • Financial
      • Investments
      • Mergers & Acquisitions
      • Earnings
    • Markets
      • Agriculture
      • Healthcare
      • Logistics
      • Manufacturing
      • Mining
      • Security
    • RBR50
      • RBR50 Winners 2025
      • RBR50 Winners 2024
      • RBR50 Winners 2023
      • RBR50 Winners 2022
      • RBR50 Winners 2021
  • Resources
    • Automated Warehouse Research Reports
    • Digital Issues
    • eBooks
    • Publications
      • Automated Warehouse
      • Collaborative Robotics Trends
    • Search Robotics Database
    • Videos
    • Webinars / Digital Events
  • Events
    • RoboBusiness
    • Robotics Summit & Expo
    • DeviceTalks
    • R&D 100
    • Robotics Weeks
  • Podcast
    • Episodes
  • Advertise
  • Subscribe