Development and application of a photovoltaic financial model

Abstract

Due to the relative immaturity of the solar farm industry, there are very few comprehensive financial models in use. I address this by developing a photovoltaic NPV financial model and apply the model to various base cases and current and future economic situations in Southern California to determine the viability of solar farms as a renewable energy source. Furthermore, this study demonstrates the need for increased incentives and improved policy guidelines in order to encourage the investment in additional highly desirable renewable solar energy projects.