Solar thermal financing guidebook

Technical Report · Sun May 01 04:00:00 EDT 1983

DOI:https://doi.org/10.2172/6178139· OSTI ID:6178139

Williams, T A; Cole, R J; Brown, D R; Dirks, J A; Edelhertz, H; Holmlund, I; Malhotra, S; Smith, S A; Sommers, P; Willke, T L

This guidebook contains information on alternative financing methods that could be used to develop solar thermal systems. The financing arrangements discussed include several lease alternatives, joint venture financing, R and D partnerships, industrial revenue bonds, and ordinary sales. In many situations, alternative financing arrangements can significantly enhance the economic attractiveness of solar thermal investments by providing a means to efficiently allocate elements of risk, return on investment, required capital investment, and tax benefits. A net present value approach is an appropriate method that can be used to investigate the economic attractiveness of alternative financing methods. Although other methods are applicable, the net present value approach has advantages of accounting for the time value of money, yielding a single valued solution to the financial analysis, focusing attention on the opportunity cost of capital, and being a commonly understood concept that is relatively simple to apply. A personal computer model for quickly assessing the present value of investments in solar thermal plants with alternative financing methods is presented in this guidebook. General types of financing arrangements that may be desirable for an individual can be chosen based on an assessment of his goals in investing in solar thermal systems and knowledge of the individual's tax situation. Once general financing arrangements have been selected, a screening analysis can quickly determine if the solar investment is worthy of detailed study.

• Research Organization: Pacific Northwest Lab., Richland, WA (USA)
• DOE Contract Number: AC06-76RL01830
• OSTI ID: 6178139
• Report Number(s): PNL-4745; ON: DE83012963
• Country of Publication: United States
• Language: English

Related Subjects

14 SOLAR ENERGY
140700* -- Solar Thermal Power Systems
29 ENERGY PLANNING, POLICY, AND ECONOMY
299001 -- Energy Planning & Policy-- Solar-- (1989-)
COMPUTER CODES
CONVERSION
ECONOMICS
ENERGY
ENERGY CONVERSION
FINANCIAL INCENTIVES
FINANCING
HEAT
INVESTMENT
LEASING
OWNERSHIP
PROCESS HEAT
SOLAR ENERGY CONVERSION
SOLAR PROCESS HEAT
SOLAR THERMAL CONVERSION
TAXES