Abstract
This chapter presents financial analyses available to determining the feasibility of implementing renewable energy central plants. It is the implementation of a solar photovoltaic (PV) system in southern California by a non-profit organization. However, in general, these analyses can be applied to other renewable energy or hybrid systems. Traditional financial analysis is one part of evaluating the feasibility of an energy consumption plan. A complete financial analysis includes all factors present during the lifecycle of a PV system. These factors include, but are not limited to, the financing structure terms, investment costs, available incentives, utility energy costs, and externalities. Proper application of financial analyses to determine the financial feasibility of a PV system provides a critical portion of the overall due diligence procedures in implementing a PV system.
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