Renewable energy variability is a problem for corporate buyers. But what is undesirable to buyers is attractive for insurance companies, whose core business revolves around managing weather-related risks. VFAs sit on top of a new or existing PPA and are effectively designed to pay the corporate buyer when they’re getting less renewable power than they contracted for, and give money to the insurer when there’s more.
The typical cost factors for solar power include the costs of the modules, the frame to hold them, wiring, inverters, labour cost, any land that might be required, the grid connection, maintenance and the solar insolation that location will receive. Adjusting for inflation, it cost $96 per watt for a solar module in the mid-1970s. Process improvements and a very large boost in production have brought that figure down to 68 cents per watt in February 2016, according to data from Bloomberg New Energy Finance. Palo Alto California signed a wholesale purchase agreement in 2016 that secured solar power for 3.7 cents per kilowatt-hour. And in sunny Dubai large-scale solar generated electricity sold in 2016 for just 2.99 cents per kilowatt-hour – "competitive with any form of fossil-based electricity — and cheaper than most."
Consumers throughout the United States have a third green power option: Renewable Energy Certificates (RECs or sometimes "green tags"). A REC represents the environmental attributes or benefits of renewable electricity generation (usually one credit = one kilowatt-hour). RECs can be purchased in almost any quantity and are usually available from someone other than your electricity provider. What you pay for is the benefit of adding clean, renewable energy generation to the regional or national electricity grid. The overall environmental benefit of purchasing a green pricing or green marketing product versus RECs is exactly the same. RECs provide a "green" option for people in any state, but are ideal for people who live in states where green pricing and green marketing options are not available.
Manufacturers often claim that their vertical axis turbine is better at extracting power from low speed winds. Unfortunately the laws of physics get in the way here: There is very little power in low speed winds. The blade of a vertical or horizontal type turbine is equally good at extracting that power, though with the vertical type the blades move at an angle to the wind where they do not extract energy for part of every rotation, adding drag and making a vertical type turbine just a little less efficient than a similar sized horizontal one. There is no advantage when it comes to low winds.
This solar resource map provides a summary of the estimated solar energy available for power generation and other energy applications. It represents the average daily/yearly sum of electricity production from a 1 kW-peak grid-connected solar PV power plant covering the period from 1994/1999/2007 (depending on the geographical region) to 2015. Source: Global Solar Atlas]