Residential solar systems: Technology, net-metering, and financial payback

The objective is to address both technical and financial aspects of a residential solar system. The impact of these two factors on financial paybacks of a resident is presented. This paper is divided to two sections. First, the impact of the technical factors such as geographical location of the solar system, proper panel installation, panel material, and system efficiency on the output electric power are discussed. Second, the effects of significant financial factors such as capital cost, utility rebates, federal tax incentives, state tax incentives, inflation rate, maintenance cost and feasible revenues on financial payback of a residential solar system are considered. In addition, net metering policy with proper usage, which results in the maximum energy output for residents of different states in the US, is demonstrated. Energy production cost and savings for residents of three cities in different states are compared considering both mentioned technical and financial factors. Results indicate that how each factor can significantly impact the residential economically. The outcome of this case study can be extended and used for those residents who are interested in the benefits and challenges of installing solar systems.