Rajan Wilcox
Bloom Energy sells fuel cells that generate electricity using natural gas, biogas, and hydrogen. The company claims that its fuel cells are more environmentally friendly than traditional power plants, emitting less carbon dioxide and fewer smog ingredients. The cost of a Bloom Energy fuel cell has been the subject of much discussion and appears to depend on various factors, including installation, shipping, sales tax, and warranty. The unit cost for a 100-kilowatt solid oxide fuel cell has been estimated to be approximately $700,000, with a cost per watt of around $12.50. However, with federal subsidies and state rebates, the cost per watt can be reduced to $6.25.
| Characteristics | Values |
|---|---|
| Capital cost | $7–8 per watt |
| Cost with incentives | $6.25 per watt |
| Cost without incentives | More expensive than solar |
| Cost of 100-kilowatt solid oxide fuel cell (SOFC) | $700,000 |
| Cost of multi-100-kilowatt system | $10 per watt |
| Cost of 10-year warranty | $2.50 per watt |
| Cost of Bloom Box | $12.50 per watt |
| Cost of internal modules | $225,000 |
| Cost of installation | $499 per kilowatt |
| Projected cost in 2010 | $3,000 |
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What You'll Learn
The cost of a Bloom Energy fuel cell is between $700,000 and $800,000
The cost of a Bloom Energy fuel cell is estimated to be between $700,000 and $800,000. This estimate is based on the assumption that the fuel cell has a capacity of 100 kW and a cost of $7000 to $8000 per kW. The actual cost of a Bloom Energy fuel cell may vary depending on various factors, such as the size, specifications, and efficiency of the fuel cell.
Bloom Energy's fuel cells, also known as "Bloom Boxes" or "Energy Servers", are designed to generate electricity using natural gas, biogas, or hydrogen as fuel. These fuel cells are marketed as a cleaner and more reliable alternative to traditional power plants, emitting fewer greenhouse gases and pollutants.
The cost of a Bloom Energy fuel cell is considered high compared to other energy sources, including solar power and microturbines. However, the company has introduced initiatives to reduce costs and increase accessibility. For example, they offer a service called "Bloom Electrons," which allows customers to purchase the electricity generated by the fuel cells without incurring the capital costs of buying the devices themselves.
In addition, Bloom Energy has implemented changes to streamline the installation process, reducing site construction costs and installation time. These initiatives are part of their efforts to drive down costs and increase margins as demand for their technology grows.
It's important to note that the cost of a Bloom Energy fuel cell can be offset by incentives and subsidies. For instance, in the United States, fuel cell incentives include a federal tax credit for 30% of the cost, with additional incentives varying by state. These incentives can significantly impact the overall cost and make Bloom Energy's fuel cells more financially viable for potential customers.
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$115.5
The cost per watt is $12.50
The cost per watt for a Bloom Box fuel cell is $12.50. This price is calculated by adding the cost of the fuel cell, installation, shipping, and a ten-year warranty. The unit cost mentioned for Bloom's 100-kilowatt solid oxide fuel cell (SOFC) is approximately $700,000. This price includes installation, shipping, and California sales tax, which comes out to $10 per watt. The ten-year warranty adds an additional $2.50 per watt, bringing the total cost to $12.50 per watt before incentives.
In 2011, the cost of a Bloom Box fuel cell was considered high compared to other energy sources. With incentives, the Bloom Box was more expensive than solar but could provide baseline power and run data centers, which solar could not do without battery packs or other energy storage technologies.
The high cost of the Bloom Box fuel cell may be due to the high operating temperature, which results in longer start-up times and mechanical and chemical compatibility issues. Additionally, the fuel cell stack is destined to foul and require replacement in five to ten years, adding to the overall cost of ownership.
Despite the high cost per watt, Bloom Energy has managed to secure several marquee customers, including Walmart, Google, and FedEx. These companies have likely considered the long-term savings and environmental benefits of using fuel cell technology, which emits less carbon dioxide than traditional power plants and does not generate smog ingredients like nitrogen oxide and sulfur oxides.
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The capital cost is $7-8 per watt
The capital cost of a Bloom Energy fuel cell is $7–8 per watt. This means that a 100-kilowatt solid oxide fuel cell (SOFC) unit costs approximately $700,000. This is based on the assumption that the unit cost mentioned includes installation, shipping, and California sales tax.
The capital cost of a Bloom Energy fuel cell can be reduced by taking advantage of various incentives. For example, fuel cell incentives in the US include a federal tax credit for 30% of the cost of a fuel cell. California also provides an additional $2.50 per watt, bringing the cost down to about $6.25 per watt, or $625,000 for a 100-kilowatt unit, excluding sales tax.
In 2010, Bloom Energy announced plans for a smaller, home-sized Bloom server priced at under $3,000. The estimated size of a home-sized server was 1 kW, although some recommended a size of 5 kW. This would result in a capital cost of $7,000-8,000 per kW, or $700,000-800,000 for a 100 kW unit, without any subsidies.
The capital cost of a Bloom Energy fuel cell can be a significant investment, but it is important to consider the potential savings and benefits that this technology can provide. For example, Bloom Energy Servers can provide reliable and efficient power generation, reducing electricity bills and providing a more environmentally friendly alternative to traditional power plants.
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The company offers a 10-year warranty for $2.50 per watt
The Bloom Energy Server is a fuel cell that generates electricity using natural gas. The company offers a 10-year warranty for $2.50 per watt, which is part of the total cost of $12.50 per watt before incentives. This price includes a ten-year warranty and the cost of the fuel cell itself.
The $12.50 per watt price is calculated by adding the $2.50 per watt warranty cost to the $10 per watt cost of a multi-100-kilowatt system, including installation, shipping, and California sales tax. This price is before any incentives or rebates, and it is one of the more expensive sources of energy, even with incentives.
The high cost of the Bloom Energy fuel cell is a significant barrier to competitive pricing and widespread adoption. However, the company has taken steps to reduce costs and increase efficiency, such as using inexpensive metal alloy plates for electric conductance and standardizing installation variables to decrease installation costs.
The $2.50 per watt warranty cost is a significant portion of the total cost of the Bloom Energy fuel cell. This warranty is essential, as the fuel cell stack is expected to foul and require replacement within five to ten years. The warranty ensures that customers are covered during this time frame and can rely on the fuel cell for their energy needs.
The $2.50 per watt warranty cost also provides customers with peace of mind and confidence in their investment. It demonstrates Bloom Energy's commitment to standing behind its product and ensuring its longevity and performance. This warranty is a critical component of the overall value proposition of the Bloom Energy fuel cell and contributes to its overall appeal in the market.
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The cost of a home-sized server is under $3,000
The cost of a home-sized Bloom Energy Server is under $3,000. In 2010, the company announced plans for a smaller, home-sized Bloom server, priced under $3,000. Bloom estimated the size of a home-sized server at 1 kW, while others recommended 5 kW. The capital cost is $7–8 per watt, or $6.25 per watt with federal and state incentives. This brings the cost of a 100 kW unit to $625,000, or $700,000-$800,000 without subsidies.
The Bloom Energy Server is a solid oxide fuel cell that generates power onsite by converting fuels like natural gas, biogas, and hydrogen into electricity without combustion. It can be installed and operational in as little as three months and can be configured for combined heat and power. The company claims that its fuel cells are cleaner than the average power plant, emitting a nearly pure stream of carbon dioxide and fewer smog ingredients like nitrogen oxide and sulfur oxides.
However, there have been criticisms of Bloom Energy's fuel cells. Some have pointed out that as the fuel cells age, they become less efficient. Additionally, the high operating temperature results in longer start-up times and mechanical and chemical compatibility issues. There have also been concerns about the cost of the fuel cells, with some noting that they are one of the more expensive sources of energy, even with incentives.
Despite these criticisms, Bloom Energy has made significant strides in improving the efficiency and cost-effectiveness of its fuel cells. For example, by delivering fuel cells as a system with built-in connections, they can be quickly joined to fuel sources and facilities that need clean, reliable power. Additionally, by manufacturing fuel cells on ready-to-install platforms, Bloom Energy can decrease installation costs and simplify the permitting process.
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Frequently asked questions
The cost of a Bloom Energy fuel cell ranges from $700,000 to $800,000 for a 100 kW unit without subsidies.
The cost per watt of a Bloom Energy fuel cell is $12.50, including a ten-year warranty.
With federal subsidies, a $2,500 California rebate, and a $7/mmBTU price for natural gas, the cost of electricity generated by a Bloom Energy fuel cell is 8-10 cents/kWh.
Replacing a Bloom Energy fuel cell costs $225,000.
In 2010, Bloom Energy announced plans for a home-sized fuel cell priced under $3,000.
