Economical Validation of Residential Solar Power Investment: A Cost–Benefit Analysis Approach

Abstract

The externalities of investment decisions with regard to residential photovoltaic (PV) systems have been changing rapidly in recent years. This study thoroughly explored these fast-changing dynamics by investigating the costs and benefits of PV investment. Five case studies were analyzed to populate the generalized observations of various PV investment conditions. This research proves that the initially high one-time installation cost can be recouped by measured benefits, although the level of return may vary from state to state depending largely on the financial incentives provided. For those enjoying either low electricity prices or peak sun hours, the results of this analysis did not support the installation of a PV system. These findings provide up-to-date benchmarking results for PV investments that homeowners can reference when assessing the costs and benefits associated with the adoption of PV systems.