Profitability Analysis for the Installation of Solar Panels on a Residential Home

Open Access
Forman, Andrew Seth
Area of Honors:
Bachelor of Science
Document Type:
Thesis Supervisors:
  • James Alan Miles, Thesis Supervisor
  • James Alan Miles, Honors Advisor
  • Orie Edwin Barron, Faculty Reader
  • Solar
  • Photovoltaic
  • California
  • New Jersey
  • Profitability
  • Residential
  • Electricity
  • kWh
The increasing demand for electricity and the decreasing availability of non-renewable natural resources have driven up electricity prices throughout time. An increasing number of residential homeowners have begun to invest in solar photovoltaic systems in order to limit the costs associated with powering a home. Due to large subsidy programs, decreasing costs for solar investments, and increasing costs per kilowatt-hour of grid electricity, a solar investment is already a favorable option for many Americans. This study aims to understand when the most economical date in the future will be for Americans to install residential solar systems; based on a number of different scenarios. 4 models were analyzed in both California and New Jersey where residential solar power investments are becoming a norm. The models each have different scenarios which ultimately affect the overall costs of installing a residential solar system. This paper seeks to answer one major question: where does a solar investment make the most sense, and what factors are driving the overall cost-savings.