What are the cash flows, payback time and returns on photovolatic modules?
Technical
- Capacity: 1kW installed
- Location: Exeter (UK) ~1,400kWh/m2
- Site: Roof, optimal slope facing south
- Module: crystalline Si
- Degradation 0.5% pa
Revenues & Cost
- UK Feed-in tariff £/kWh0.361, 25 years, export tariff £/kWh 0.03
- Installation cost £3,500
- Operating: £210 pa
- Inflation 2% pa (for tariff and operating cost)
Long payback time, but good annual return
Payback Time: 9 - 10 years
Internal rate of return: ~ 10% pa
Values vary with location, orientation of modules, technology choices, size of installation as well as actual installation and operating costs. For more information please contact us.
What returns can you expect for a given tariff and capital cost?
Technical
- Energy yield: 950kWh/kWp per annum (typical for locations in Western Europe)
- Degradation 0.5% pa
Revenues & Cost
- 25 year feed-in tariff
- Operating: 0.5% of initial capital costs per annum
- No inflation adjustment
- Savings from own use not taken into account.
Attractive returns over wide ranges
Decreasing feed-in tariffs will force capital costs down in order to achieve the same internal rate of return for the investor.
For more information on economics of pv panels, please contact us.
