Economical Validation of Residential Solar Power Investment: A Cost–Benefit Analysis Approach
Publication: Journal of Management in Engineering
Volume 38, Issue 3
Abstract
The externalities of investment decisions with regard to residential photovoltaic (PV) systems have been changing rapidly in recent years. This study thoroughly explored these fast-changing dynamics by investigating the costs and benefits of PV investment. Five case studies were analyzed to populate the generalized observations of various PV investment conditions. This research proves that the initially high one-time installation cost can be recouped by measured benefits, although the level of return may vary from state to state depending largely on the financial incentives provided. For those enjoying either low electricity prices or peak sun hours, the results of this analysis did not support the installation of a PV system. These findings provide up-to-date benchmarking results for PV investments that homeowners can reference when assessing the costs and benefits associated with the adoption of PV systems.
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Data Availability Statement
Some or all data, models, or code that support the findings of this study are available from the corresponding author upon reasonable request.
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Published In
Journal of Management in Engineering
Volume 38 • Issue 3 • May 2022
Copyright
© 2022 American Society of Civil Engineers.
History
Received: Sep 27, 2021
Accepted: Dec 15, 2021
Published online: Feb 26, 2022
Published in print: May 1, 2022
Discussion open until: Jul 26, 2022
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