TITLE:
The Impact of Time-of-Use Electricity Rate Plans on Solar Array Installation Breakeven Period
AUTHORS:
Joseph Hoshen
KEYWORDS:
Solar Panels, Solar Arrays, Solar Modules, Cash Flow, Present Value, Standard Rate Plan, Time-of-Use Rate Plan, Energy, Payback Period
JOURNAL NAME:
Open Journal of Business and Management,
Vol.11 No.4,
July
10,
2023
ABSTRACT: This paper describes a computational model for
determining the breakeven period for time-of-use (TOU) and standard electricity
plans. To determine the breakeven period, the model compares a solar array
rooftop system installation with a grid-based system. The model is applied to a
house in northern Nevada. Because of uncertainties in electricity rate
increases and market interest rates, the model predicts significant variability
in the breakeven period, ranging from 10 to 30 years. The model also analyzes
the impact of: 1) solar array orientation and 2) making daylight saving time
permanent on the customers’ bills and the breakeven period.