Abstract :
Cost effectiveness for consumers of solar electric systems has been achieved in the California residential market due
to Time-of-Use Net Metering, a tiered electric rate structure with high rates, and subsidies by the state government.
Three different approaches test and validate this hypothesis for a large fraction of consumers. Solar electricity can
generate rates of return of 11–20% exceeding most other common investments, can increase property value by more
than the cost to install the system, and generate a positive cash flow if financed.
This paper suggests further study in the commercial sector and a survey to document evidence of increased home
resale value.
2004 Elsevier Ltd. All rights reserved
