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

Abstract

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)

Authors:
;
Publication Date:
Research Org.:
California Univ., Berkeley (USA). Lawrence Berkeley Lab.
OSTI Identifier:
6568089
Report Number(s):
LBL-7876
DOE Contract Number:
W-7405-ENG-48
Resource Type:
Technical Report
Country of Publication:
United States
Language:
English
Subject:
14 SOLAR ENERGY; PUBLIC UTILITIES; INVESTMENT; SOLAR COOLING SYSTEMS; FINANCING; RISK ASSESSMENT; SOLAR HEATING SYSTEMS; CAPITAL; ECONOMIC ANALYSIS; MARKETING RESEARCH; ECONOMICS; HEATING SYSTEMS; 140300* - Solar Energy- Economic, Industrial, & Business Aspects; 140901 - Solar Thermal Utilization- Space Heating & Cooling

Citation Formats

Kahn, E., and Schutz, S. Utility investment in on-site solar: risk and return analysis for capitalization and financing. United States: N. p., 1978. Web. doi:10.2172/6568089.
Kahn, E., & Schutz, S. Utility investment in on-site solar: risk and return analysis for capitalization and financing. United States. doi:10.2172/6568089.
Kahn, E., and Schutz, S. Fri . "Utility investment in on-site solar: risk and return analysis for capitalization and financing". United States. doi:10.2172/6568089. https://www.osti.gov/servlets/purl/6568089.
@article{osti_6568089,
title = {Utility investment in on-site solar: risk and return analysis for capitalization and financing},
author = {Kahn, E. and Schutz, S.},
abstractNote = {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)},
doi = {10.2172/6568089},
journal = {},
number = ,
volume = ,
place = {United States},
year = {Fri Sep 01 00:00:00 EDT 1978},
month = {Fri Sep 01 00:00:00 EDT 1978}
}

Technical Report:

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