Utility investment in on-site solar: risk and return analysis for capitalization and financing

Technical Report · Fri Sep 01 04:00:00 EDT 1978

DOI:https://doi.org/10.2172/6568089· OSTI ID:6568089

Kahn, E; Schutz, S

A set of financial strategies designed to accelerate the penetration of on-site solar heating and cooling systems are studied. The approach of portfolio theory or the capital asset pricing model (CAPM) is used. The major features of the CAPM is summarized including a survey of those applications which are most relevant to the analysis. These include utility return on equity calculations and project evaluation techniques. How to apply empirical results is discussed based on CAPM methods. In particular, applications to the capitalization variant of the utility investment strategy and the financing variant are distinguished. Subsidization rationales are also discussed. Empirical results to date are summarized, including estimation problems for the various risk measures. The general problem of financial risk assessment for energy technologies is reviewed. (MHR)

• Research Organization: California Univ., Berkeley (USA). Lawrence Berkeley Lab.
• DOE Contract Number: W-7405-ENG-48
• OSTI ID: 6568089
• Report Number(s): LBL-7876
• Country of Publication: United States
• Language: English

Related Subjects

14 SOLAR ENERGY
140300* -- Solar Energy-- Economic
Industrial
& Business Aspects
140901 -- Solar Thermal Utilization-- Space Heating & Cooling
CAPITAL
ECONOMIC ANALYSIS
ECONOMICS
FINANCING
HEATING SYSTEMS
INVESTMENT
MARKETING RESEARCH
PUBLIC UTILITIES
RISK ASSESSMENT
SOLAR COOLING SYSTEMS
SOLAR HEATING SYSTEMS