Impact on photovoltaic worth of utility rate and reform and of specific market, financial, and policy variables: a commercial/industrial/institutional sector analysis
An assessment is provided of the economic outlook for photovoltaic systems in the commercial, industrial and institutional sectors in the year 1986. The expected cost and performance goals are summarized for photovoltaic technology, and then aspects of the market and financial environment pertinent to assessment of a photovoltaic investment beginning in that year are estimated. Three geographic regions of the US are covered, characterized by Boston, Madison, and Phoenix, and photovoltaic economic performance is examined when operating against five different means for establishing utility backup rates. The potential of a photovoltaic array to reduce a firm's monthly capacity charge is assessed. For the initial analysis, utilizing a base case set of financial parameters, it is found that a peak-shaving credit attributed to a photovoltaic array can be significant, but not so much as to prove photovoltaics in the commercial sector in 1986. The institutional sector is expected to find photovoltaics profitable if they discount at rates reflective of the returns on long-term government bonds. Sensitivity studies are performed and the impact of combinations of government incentives is examined. (LEW)
- Research Organization:
- Massachusetts Inst. of Tech., Cambridge (USA). Energy Lab.
- DOE Contract Number:
- AC02-76ET20279
- OSTI ID:
- 6325771
- Report Number(s):
- MIT-EL-80-025; ON: DE81029698
- Country of Publication:
- United States
- Language:
- English
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29 ENERGY PLANNING
POLICY AND ECONOMY
PHOTOVOLTAIC POWER SUPPLIES
ECONOMIC ANALYSIS
INVESTMENT
CAPITALIZED COST
COMMERCIAL SECTOR
COST
DEPRECIATION
FINANCING
INDUSTRY
INSTITUTIONAL SECTOR
INTEREST RATE
MARKET
PERFORMANCE
RATE STRUCTURE
SENSITIVITY ANALYSIS
TAX CREDITS
ECONOMICS
ELECTRONIC EQUIPMENT
EQUIPMENT
POWER SUPPLIES
SOLAR EQUIPMENT
140600* - Solar Energy- Photovoltaic Power Systems
140300 - Solar Energy- Economic
Industrial
& Business Aspects
299001 - Energy Planning & Policy- Solar- (1989-)