Economics of Solar Systems

Conventional fuels and utility power enjoy tremendous subsidies in our country while Solar is taxed. Even with the unfavorable playing field, Solar Power is most the attractive on-site power generation technology, as demonstrated by the three examples below. This information is presented to enable customers to perform calculations using their own data and to enable them to choose the most appropriate technology for electric power.

The examples below demonstrate:

♦ Cost of Solar Power over 20 year operation of the system is less than 1/3 the cost of utility power and 1/5 the cost of power produced by on-site diesel generators.

♦ Simple payback period of 6 years for solar systems without battery storage. Most commercial and industrial systems are grid-tied or generator-tied not needing any significant battery storage.

♦ Simple payback period of 8 years for solar systems with battery storage. These systems have the added advantage of providing uninterruptible power in areas of frequent utility power outages.

Cost of Solar Power Vs Utility Power Vs Generator Power:

Simple Payback for Solar Systems without Battery Storage: 

Simple Payback for Solar Systems with Battery Storage: