Grid-Tie Basics - What is the payback of a 2.5 kW IPP system?
What is the payback of a 2.5 kW IPP system?
The payback of a grid connected system is not the primary choice for becoming an IPP, also it is difficult to determine since these systems are estimated to last 20 years plus. Estimating the costs for future energy is uncertain with all the factors of population growth, energy resource depletion and inflation involved. Independent power producers find value in producing electrical energy and protecting their homes against power outages. The value a person places on protecting against utility outages or the value placed on contributing to clean energy production is what should be used to determine the payback period. Simply said, the payback of a 2.5kW IPP system is about equivalent to the payback of your refrigerator. What is your value of having cold drinks, preserved foods and fresh vegetables on demand? The point is: we should not be evaluating the payback of a grid interconnected PV system because the return on investment is not the primary reason for choosing a grid connected PV system.