Financing options and economic impact: distributed generation using solar photovoltaic systems in Normal, Illinois

Abstract

Due to increasing price volatility in fossil-fuel-produced energy, the demand for clean, renewable, and abundant energy is more prevalent than in past years. Solar photovoltaic (PV) systems have been well documented for their ability to produce electrical energy while at the same time offering support to mitigate the negative externalities associated with fossil fuel combustion. Prices for PV systems have decreased over the past few years, however residential and commercial owners may still opt out of purchasing a system due to the overall price required for a PV system installation. Therefore, determining optimal financing options for residential and small-scale purchasers is a necessity. We report on payment methods currently used for distributed community solar projects throughout the US and suggest appropriate options for purchasers in Normal, Illinois given their economic status. We also examine the jobs and total economic impact of a PV system implementation in the case study area.