ABOUT ONSITE SOLAR
SOLAR FINANCIAL RETURNS
Financial returns for solar projects are primarily driven by three factors.
HIGH AMOUNT OF SUNSHINE, OR IRRADIANCE
STATE POLICIES PROMOTING RENEWABLE ENERGY
HIGH LOCAL ELECTRICITY COSTS
TOP US SOLAR RETURNS
States with higher solar returns typically have a favorable status for at least 2 of the 3 factors.
WASHINGTON, D.C.
Irradiance: Moderate
Positive Solar Policy? Yes (very)
Electricity Cost: Moderate
Positive Solar Policy? Yes (very)
Electricity Cost: Moderate
HAWAII
Irradiance: High
Positive Solar Policy? Yes
Electricity Cost: High
Positive Solar Policy? Yes
Electricity Cost: High
CALIFORNIA
Irradiance: High
Positive Solar Policy? Yes
Electricity Cost: High
Positive Solar Policy? Yes
Electricity Cost: High
MASSACHUSETTS
Irradiance: Low
Positive Solar Policy? Yes
Electricity Cost: High
Positive Solar Policy? Yes
Electricity Cost: High
NEW YORK
Irradiance: Low
Positive Solar Policy? Yes
Electricity Cost: High
Positive Solar Policy? Yes
Electricity Cost: High
NEW JERSEY
Irradiance: Low
Positive Solar Policy? Yes
Electricity Cost: High
Positive Solar Policy? Yes
Electricity Cost: High
MARYLAND
Irradiance: Moderate
Positive Solar Policy? Yes
Electricity Cost: Moderate
Positive Solar Policy? Yes
Electricity Cost: Moderate
COLORADO
Irradiance: High
Positive Solar Policy? Yes
Electricity Cost: Low
Positive Solar Policy? Yes
Electricity Cost: Low
ONSITE SOLAR FINANCING
1
OWNERSHIP
Owner seeks funding based on
financial models run by REV
Owner retains all financial returns, including federal and local renewable energy benefits.
2
LEASE
Lease through a lender with option
to purchase after term of loan
Little to no initial capital investment; owner may retain a portion of financial returns
3
POWER PURCHASE AGREEMENT
Third party developer installs, owns, and operates the onsite solar system
No initial down payment; third party retains all financial returns, including federal and local renewable energy benefits.
SOLAR SYSTEM
PRICING
Average On-Site Commercial System Pricing in $/Watt
- While steep over the last decade, pricing has leveled out and in some cases, such as labor costs, already on the upswing.
- Best to implement prior to additional increases.
