It depends. 80% of my electricity cost is taxes. If I produce it using PV, the consumption is never taxed, and the benefit is pretty substantial, on top of the market electricity price. (One rarely finds low risk investments that return 20-25% year)
Roughly speaking the electricity is about €0.06 with about €0.20 in taxes on top. So offsetting consumption nets me about €0.26 cents per kWh.
The installation of a 2800kWp system cost me about €2600 and generates between 2400-2750kWh annually, so about €650 euro. In a 10 year timespan that’s an IRR of 20%, creeping up to 25% for 20 years.
gertlex|5 months ago
Should I interpret the 20-25% returns as being, your annual savings on the utility bill are 20-25% of the cost of your PV install?
hectormalot|5 months ago
Roughly speaking the electricity is about €0.06 with about €0.20 in taxes on top. So offsetting consumption nets me about €0.26 cents per kWh.
The installation of a 2800kWp system cost me about €2600 and generates between 2400-2750kWh annually, so about €650 euro. In a 10 year timespan that’s an IRR of 20%, creeping up to 25% for 20 years.
dzhiurgis|5 months ago