In the previous article, What is the average cost of solar roof in India ?, we learned that the average cost of the solar roof in India is Rs. 83 /watt to Rs. 91 / watt (without battery back up). Now let us determine the Payback period and the financial feasibility of the project.
The basic survival law of any enterprise is to minimize the cost and maximize the returns. I am not saying maximizing the returns only in monetary terms but considering every aspect of the real profitable business-like
Massachusetts is located in the North-eastern region of the United States and also it is one of the smallest states in the country. Let us know the complete financial feasibility of the residential solar in Massachusetts. The state receives an average solar radiations of 4.44 KW-hr/m²/day. The risk free return in the state is 2.9% per year (20 year bond yield). If the system offers higher return than the risk free return then it is a feasible option otherwise it is not.
The state Washington is located in the Pacific Northwestern region of the country. Let us find the feasibility of the residential solar in the state. My solar power system will be feasible if it offers more than or equal to 2.9% (20 years bond yield) return per year otherwise it is not feasible.
The state Arizona is situation in the south western region of the United States of America. In this post I will discuss the financial feasibility of the residential solar in Arizona. The system is financial feasible if it offers more return than the risk free return offered by the state. The risk free return in USA on 20 year bond is 2.9%. If my solar system offers return higher than 2.9% then my solar system is feasible otherwise it is not. Let's quantify the financial feasibility of the state.
Punjab is gifted with a good amount of the solar radiations and hence offers an opportunity for the solar electricity to grow as an alternate source of energy.