Dr. B recommended to focus more on the business aspect of renewable energy, which seems like a good idea. We are the Business Astronauts after all. So let’s talk business!
Your replies on my former posts gave me the idea to write about the profitability of photovoltaic (PV). It seems to be common sense in society, that PV is to expensive and it does not pay. But is that really true? And for whom does it pay or not? This time I want to talk about PV as an investment for private households or companies.
Is PV to Expensive?
The statistic data provided by the German Solar Industry Association (BSW-Solar) shows, how drastically the prices of photovoltaic systems have decreased over the last years. Bad for sellers. Good for buyers.
Is PV Profitable?
The Fraunhofer Institute for Solar Energy Systems (ISE) have just recently released their updated report about the facts of PV in Germany. I like this report especially, because it answers many common questions about PV in a very understandable way. (Unfortunately I haven’t found an English version.)
According to the ISE, an investment in a PV system yields an interest between 3.5 and 8.8 percent. But it would be an long term investment. It is estimated that you can reach amortization after approximately 11 – 13 years. And the ISE claims that PV modules have a life span of 20 to 30 years. In conclusion, you could profit over 7 to 17 years. (Even longer, when your solar modules last for more than 30 years.)
The German feed-in tariff (FIT) regulations give your investment a higher level of security. These regulations guarantee, that your local energy supplier has to buy your homemade electricity at fixed price over 20 years. (If you are still thinking: “Who feeds what in what?” – you can check out this video from my last post.)
Is PV only Profitable because of Feed-In Tariffs?
The German Trade & Investment draws a different picture in their PV market report. They describe, that the increasing prices for electricity have already reached a higher level than the mentioned feed-in tariffs. Therefore consuming your own electricity might pay even more.
This can be a very reasonable option for companies, that need most of their electricity during the day, when the sun shines anyway. Private households would possibly have to install energy saving batteries for their households, which would add further costs. But as electricity prices will increase further in the future, this model becomes more and more attractive.
To Sum It Up
According to mentioned sources PV provides a profitable solution to produce electricity for private households as well as for businesses. And this is despite the huge advantages that the renewable energies bring anyways – green energy with less CO2-emissions and an energy source that burns approximately for another 4 billion years. (If the Mayas are not right – of course.)
Or, as this solar company puts it in this video:
