Planning to Install a Photovoltaic System
Apr 27, 2020
Planning to Install a Photovoltaic System
There are a number of factors that will influence the decision to install photovoltaic panels on either a new building or an existing one.
Some people will install solar panels mainly because of environmental concerns and to increase their sustainability and decrease their carbon footprint. In the early days of photovoltaic technology when it was very expensive and not economic for most situations with a grid connection, these enthusiastic people drove the expansion of this "green energy" technology. However, this is changing quickly as photovoltaic technology goes mainstream in many parts of the world, eg Germany, Spain, Italy, Australia and California, USA.
Economic factors
Now that the cost of panels has dropped dramatically, and looks set to continue falling, it is close to reaching the point where it is economic for building owners to install them – and to expect a positive payback from doing so.
The economic factors are:
The total cost of buying and installing the PV system.
The amount of electricity in kilowatt hours (kWh) it will generate over its life.
The current price of buying electricity (cents per kilowatt hour).
The possible future price of buying electricity.
The price paid to you for exporting extra solar electricity to the grid.
