The impact of different economic performance metrics on the perceived value of solar photovoltaics
By: Easan Drury, Paul Denholm, and Robert Margolis
Contributors: Denholm, P. (Paul); Margolis, Robert M.; National Renewable Energy Laboratory (U.S.)
Series: Technical report -- NREL/TP-6A20-52197; NREL/TP -- 6A20-52197.
Publisher: National Renewable Energy Laboratory, U.S. Dept. of Energy, Office of Energy Efficiency and Renewable Energy
Published: 2011
Place of publication: Golden, CO
Language: eng
Format: [electronic resource] /
Number of pages: 53
Subjects: Photovoltaic power generation; Economic aspects; Distributed resources (Electric utilities); Investment analysis; Mathematical models
Description: Photovoltaic (PV) systems are installed by several types of market participants, ranging from residential customers to large-scale project developers and utilities. Each type of market participant frequently uses a different economic performance metric to characterize PV value because they are looking for different types of returns from a PV investment. This report finds that different economic performance metrics frequently show different price thresholds for when a PV investment becomes profitable or attractive. Several project parameters, such as financing terms, can have a significant impact on some metrics [e.g., internal rate of return (IRR), net present value (NPV), and benefit-to-cost (B/C) ratio] while having a minimal impact on other metrics (e.g., simple payback time). As such, the choice of economic performance metric by different customer types can significantly shape each customer's perception of PV investment value and ultimately their adoption decision.
Notes: Title from title screen (viewed Dec. 19, 2011).

"October 2011."

Technical report.

DE-AC36-08-GO28308. SS10.2210