You Can Afford Solar Power
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For more information on calculating PV system payback, go to www.ongrid.net/payback. Additional tools for calculating payback are listed at left. Be aware that some tools don’t account for tiered or time-of-use electric rates in interaction with PV production, and therefore their results may over- or underestimate the value of a PV system in a particular situation.
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Going solar, like any other major purchase, is a “buyer beware” situation. In addition to avoiding oversimplified estimates, be cautious of aggressive sales pitches and overly optimistic financial analyses.
Solar has finally come into its own in certain markets, which are exploding because individuals are discovering the financial benefits of owning PV systems in those regions. To encourage widespread adoption of solar energy, we need to empower everyone with this knowledge and expand the components that make it possible — tiered rates, time-of-use net metering and renewable energy credits. Market forces will take it from there.
Tools for Calculating PV System Payback
Database of State Incentives for Renewable Energy
Clean Power Estimator
Find Solar
PV Watts
RETScreen International
Solar Energy Industries Association Guide to Federal Tax Incentives
Author’s post of detailed information on calculating various scenarios
Andy Black owns OnGrid Solar, which provides solar financial analysis tools and consultation. He is a board member of the American Solar Energy Society (ASES). He teaches and consults regularly on the payback of solar electricity. Contact him at (408) 428-0808 or andy@ongrid.net.
This article was reprinted fromSolar Today, the excellent magazine published by ASES. A year’s subscription is only $29, a bargain for anyone interested in the latest news on solar and other renewable energy technologies.
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