Risk, Reward and the Value of a Solar Array

摘要

What is the value of a solar power plant? It's easy to calculate the cost of materials and installation. And for the traditional off-the-grid user, or someone taking a personal step toward green technology, that's probably enough.rnBut as commercial and utility-scale solar installations proliferate, they will increasingly be bought and sold as investments. In these cases, value will be assessed in the.same way as a traditional power plant or a financial instrument - in terms of its long-term cash flow. Unlike solar PV installations, traditional power plants have well-characterized and predictable operations. A turbine-generator combination will produce a known amount of energy over a known number of years, assuming proper maintenance and a supply of fuel. The big unknown is the price of the fuel, which can vary widely.