ECONOMICS OF SOLAR ELECTRIC SYSTEMS

Today, solar electric systems can save you money in numerous applications. Many factors need to be considered when evaluating the economic feasibility of installing a solar electric system for your business or home. Some of these include the available solar resource in your location, your electric rate, expected future electric rates, available tax incentives, as well as the installed cost of the system.

Grid-Connected Systems: Solar electric systems on commercial buildings in Hawaii are attractive investments due to:

	currently available substantial tax incentives, including state and federal tax credits totaling 49% of the installed system cost
	availability of 5-year accelerated depreciation of the equipment.

These tax incentives can contribute to very reasonable payback periods.

Off-Grid Systems: Solar electric systems can also be used to economically power homes and other facilities located in areas not served by the utility grid. In these cases, the cost of solar power may make sense when compared against the cost of extending utility lines to the property.

Solar Lighting Systems: Solar lighting systems are self-contained lighting units that are used in both remote, off-grid locations as well as locations near utility lines. These systems can be economically attractive due to the cost of utility line extensions in remote areas or because of the avoided excavation/resurfacing costs associated with underground utility lines in areas near utility service.

Operation & Maintenance Costs: All electrical generating systems, including renewables, have operation and maintenance costs. For solar electric systems these costs may include an inverter and battery replacements.

Estimating Savings from Solar - Residential and Commercial
To get an estimate of the economic feasibility of a PV system in your location you can use the Clean Power Estimator hosted by the State of Hawaii Department of Business, Economic Development and Tourism.

Types of Solar Electric Applications

Solar electric technologies are presently used in numerous applications on our island and around the world. The following list identifies some of the more common applications. As the solar industry continues to expand and develop new products, the list of practical applications will also grow.

• Space satellites and spacecraft
• Homes in off-grid areas
• Telecommunications sites
• Small consumer electronics (e.g. watches, calculators)
• Grid-connected homes and businesses
• Water pumping
• Village electrification (in the developing world)
• Solar lighting (for security and general purpose)
• Building integrated (some new building materials like glazing and roofing have solar included as a part of the product)
• Civil Defense sirens
  
• Emergency phones and emergency electricity generation
  
• Navigational and meteorological instrumentation
  
• Large utility systems
  
• Parking shade structures
  
• Refrigeration for emergency and remote location medical supplies