How does investment in fixed assets affect a solar business?

For solar and other renewable energy businesses, investment in fixed assets accounts for a significant part of the expenditure, for example, solar panels in the case of solar energy.

Should solar energy projects be measured by simple payback period?

Given these limitations, it is not recommended that the economic viability of solar energy projects be measured by simple payback period alone. A net present value analysis should be the primary means by which these projects are evaluated, with simple payback period used to provide additional information on a local government’s investment in solar.

Can a solar company have multiple books and records?

It’s common for certain solar and other renewable energy companies to set up multiple entities which are ultimately owned by a parent company or private equity group. As a result, multiple books and records may need to be set up and can get complex.

What is a renewable generating asset (Rec)?

When the owner of a renewable generating asset produces power from its facilities, it receives a REC for each MWh generated. RECs are market-based instruments that certify that the bearer owns an instrument that represents one MWh of electricity generated from the renewable energy facility.

How does solar electricity affect a customer's energy costs?

However, the use of solar electricity only allows a customer to avoid those costs based on the number of kilowatt-hours (kWh) consumed; fixed costs and demand chargesx (a charge associated with the highest peak demand in a billing period) will likely be unaffected by any avoided electricity consumption.13

How do you calculate solar energy output?

A simple estimate of annual electricity output can be calculated by finding the product of two figures: the solar energy system’s capacity rating and the number of peak sun hours received at a location. Capacity Rating is a measure of the size of a solar energy system, typically measured in watts (W) or kilowatts (kW).