WHAT IS THE COST OF A PHOTOVOLTAIC PLANT? HOW MUCH SAVING DOES IT GENERATE?

Not only respect for the environment, but also energy cost reduction. The cost of a photovoltaic plant and the return on investment time.

What is the cost of a photovoltaic plant? The question being put in that way is difficult to resolve. Indeed, it is necessary to conduct a series of analyses to comprehend the benefits guaranteed by the solar power technology, weigh up the investment made and the economic rate of return in terms of cost reduction and profit from the surplus energy. Moreover, we have to consider the financing cost for the acquisition, which is necessary for those who have the sufficient liquidity to ensure the immediate payment for the technology, although in that case the Internet helps compare the loans offered by the market, in order to select the most advantageous solution.

What is the cost of a photovoltaic plant?

Let us begin with answering the first question from which the entire analysis derives. How much does a photovoltaic plant cost? When we refer to the average costs defined by the sector, the price is around 2,000 and 2,500 euros per kilowatt. If we assume the installation of a plant of 3 KWP (kilowatt peak, that is theoretical power capacity of the plant), it will entail the cost of 6,000-6,500 euros, plus 10% VAT, which will equal between 6,600 and 7,150 euros.

How much can you save?

If we refer to the average values of the cost of energy and consumption, we can assume an average monthly energy cost of around 45 euros per household, which corresponds to about 3,000 kWh consumed a year. The plant of 3 KWP considered for the purposes of the analysis produces on average 3,300 kWh a year.

If we estimate that about 70% of the energy produced by the plant will be consumed within the household, it means that 2310 kWh will be used to meet one’s own demand, whereas the remaining 990 kWh will be brought onto the market, entailing a profit of 198.99 euros (990 kWh multiplied by the energy value in the national market).

That will encompass also the economic saving generated by the money saving due to the lack of use of the energy service equaling 415.08 euros (2310 kWh multiplied by 0.18 euro that is the cost of 1 kWh of energy). Another profit element will be exploitation of the energy consumed within the household amounting to 291.06 euros a year (2310 kWh x 0.126 euro that is the value of the consumed energy).

If the profits and unallocated costs are considered, a photovoltaic plant will allow obtaining an overall average revenue of 905.05 euros a year.

So?

Assuming that the cost of the plant has been covered completely with the necessary resources, and thus without the need to incur further expenditure related to the interest rates of the hire purchase, a photovoltaic plant of a capacity of 3 KWP the cost of which is between 6,600 and 7,150 euros is amortized within 8 years from the installation. However, as it is an average estimate, it is necessary to take account of different variables such as, above all, the plant’s performance.