Environmental Issues

1. The article, Payback and other financial tests for solar electric systems, describes several government incentive programs to help promote solar. Identify and describe two government incentive programs.

    There are two government incentive programs for solar these are the regulatory and cash incentives. The regulatory forms of incentives come in the form of electric rate-based savings meaning, those who use solar as energy source have lower electricity rate compared to the conventional users. On the other hand, cash incentives come in the form of tax savings and benefits.

2. What are two methods of pricing electricity per kWh
    The two methods of pricing electricity per kWh are Flat Rate Tariff Systems and Time of Use rate (TOU). Flat Rate Tariff Systems charge the same rate any time of the day while TOU charges a higher rate during peak demand.

3. How is Compound Annual Rate of Return (CARR) on an investment another term for interest rate
    CARR on an investment is another term for interest rate because it is computed using the same formula as the interest rate. It is the rate of yield from tax incentives.

4. How does one calculate the payback of solar investment
    To calculate the payback of a solar investment, it is necessary to add in the rate of escalation adjusted savings of each successive year, less the reduction due to module degradation and maintenance costs.

5. Describe two flaws in using payback for a residential long-term investment.
    The two flaws in using payback for a residential long-term investment are the following
It does not properly include the tax savings and consequences.
It does not account for maintenance or inverter replacement expenses.

6. Identify three sales strategies when selling solar photovoltaic systems. What makes these three sales strategies effective
The three sales strategies when selling photovoltaic systems are the following
Knowing the cost of installation.
Each member of the sales team must know the cost of installation, including all of the different fees and charges, so that he or she can explain the cost to the customer. When the customer understands the cost of what he is purchasing, the chance of buying it is greater.
Presentation of rebates, incentives and tax credits.
Salespeople must be able to present information on rebates, incentives, and tax credits to the customer. These can significantly reduce initial installation costs. This way, the customer will feel that he is on the advantage side and that he is privileged to have numerous discounts.
 
Demonstration of savings.
A professional salesperson must be able to demonstrate the savings involved with a solar PV system. This is when he may discuss with the customer the advantages and benefits of PV technology. This is very vital because savings is one primary concern of consumers why they buy a product. Thus, if the salesperson effectively demonstrated that his product is better that what is currently being used by the customer, success is at hand.
7. What is Internal Rate of Return
    The Internal Rate of Return (IRR) compares the investment in solar energy to the investments and includes factors such as after-tax dollars versus pre-tax dollars.
8. Prepare a return on investment analysis for a solar PV system at your residence. Based on a cost of 40,200 for the solar PV system being installed at your residence, and a new monthly electric bill of 15, determine the following
Average monthly electric bill pre-solar     35
Calculate the monthly savings.
(Average monthly electric bill pre-solar)  (Average monthly electric bill w solar)
 35 -  15   20  (  monthly savings
Calculate the annual savings.
     20  12   240 ( annual savings
Determine the amount of time it will take to obtain return on investment.
(Cost of PV system installation)  (Annual savings)  Years to obtain return on investment
 40, 200   240  167.5 years (  of years it will take to obtain return on investment


1. Comment on the following Knowledge of environmental concepts will help conclude your PV system sale.
    Knowledge of environmental concepts will definitely help conclude your PV system sale because you will use it to justify the necessity of your product. The advantages and benefits of PV system rely on its ability to address environmental issues. As a matter of fact, the very reason of the creation of PV systems is the quest for alternative source of energy geared towards environmental and economical reward.

2. Why solar PV systems will enhance the resale value of real estate
    Solar PV systems will enhance the resale value of real estate because the next owners will not have to spend much on electricity and most importantly, the benefits of PV systems are laid out for them. There is no need for the next owners of the real estate to spend for the installation of the system and the processing of the necessary permits and papers. Hence, the resale value of the real estate really increases

3. Discuss the most important elements of customer presentation report on PV systems.
    Savings analysis, investment returns and environmental benefits are the most important elements of customer presentation report on PV systems. With these three elements incorporated and working hand in hand, customer presentation report will definitely become excellent and enticing to customers and the entire public. For example, savings analysis will show the economical advantage of using PV systems. Showing how a PV technology user will save up on his current expenses will surely attract new customers. Furthermore, the investment returns will demonstrate technically how PV technology is an advantage economically in the long term. All the aforementioned important elements will make a customer presentation report efficient and sales are guaranteed.