Economics

Net present value, pay back period, internal rate of return

 At a price tag of 5.300 €/kWp, a typical building-roof-top PV plant in the 20-to-50 kW power range, in the North of Italy, delivers attractive financial parameters: 8 to 9% Internal Rate of Return (calculated on discounted cash flows over the 20-year incentive period) and a 9-to-10 years pay-back time. However, with a 12-year mortgage for 80% of the investment, the own-capital investment returns in much less time, between 6 and 7 years. >> see a quick financial analysis of a 10 kW roof-top plant [pdf]

Higher rates of return, in the 10-12% range, are avaliable in the southern Regions of Italy, from Abruzzi to Puglia. Try your own simulation with our cash-flow simulator (xls file). Irradiance data and photovoltaic production yelds available from the JRC web site.