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Understanding Solar Economics Print

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Whether it pays.

WHAT THE CALCULATION IS

System cost, against what it saves over its life.

WHAT TO ESTABLISH FIRST

Your current cost per unit, from all sources combined.

WHY COMBINED

Solar displaces your most expensive source, not the cheapest.

WHAT TO CALCULATE

Units the system will produce annually Value of those units at your current cost System cost, including installation Battery replacement over the life

WHY BATTERY REPLACEMENT MATTERS

It is the largest recurring cost and it is frequently omitted from projections.

WHAT PAYBACK PERIOD MEANS

How long before savings equal the investment.

WHAT TO EXPECT

Years, not months.

WHAT MAKES PAYBACK SHORTER

High current energy cost Heavy daytime consumption Reliable sunlight Long equipment life

WHY DAYTIME CONSUMPTION MATTERS

Solar produces during the day; consuming it directly is more efficient than storing it.

WHAT THAT IMPLIES

Businesses operating in daylight benefit most.

WHAT TO BE SCEPTICAL OF

Projections assuming optimistic sunlight hours Projections omitting battery replacement Savings calculated against grid tariffs rather than your actual mix

WHAT TO ASK ANY SUPPLIER FOR

The assumptions, in writing.

WHAT TO DO WITH TWO QUOTATIONS

Compare the assumptions, not only the price.


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