THE VIABILITY OF RESIDENTIAL GRID-CONNECTED SOLAR PHOTOVOLTAIC SYSTEMS IN THE STATE OF INDIANA

Year 2016, Volume: 5 Issue: 4, 376 - 388, 30.12.2016

Mahmoud Al-odeh Marion Schafer M. Affan Badar Randy Peters

https://doi.org/10.17261/Pressacademia.2017.360

Abstract

While the use of green energy has gained popular
support and efforts have been made to market it, few studies have investigated
the economic advantages and the savings that could be gained by implementing
green solutions for energy challenges. This study aims to measure the financial
viability of installing and using a residential grid-connected photovoltaic
(PV) system in the State of Indiana while predicting its performance in
eighteen geographical locations within the state over the system’s expected
lifetime. A systematic approach of six steps was used to collect and analyze
the data. The analysis has been condcutded using engineering economic methods
including payback period, net present value (NPV) and internal rate of return
(IRR). It has been found that installing a PV system for a single family
residence in the State of Indiana will not pay for itself within 25 years
assuming the average cost of a system. The government incentive programs are
not enough to offset the cost of installing the system against the cost of the
electricity that would not be purchased from the utility company.

Keywords

Net present value, internal rate of return, payback period, residential solar PV system, renewable energy, State of Indiana

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