Solar Power

Solar power is the conversion of sunlight into electricity, either directly using photovoltaics (PV), or indirectly using concentrated solar power (CSP). Concentrated solar power systems use lenses or mirrors and tracking systems to focus a large area of sunlight into a small beam. Photovoltaics convert light into an electric current using the photovoltaic effect.

The International Energy Agency projected in 2014 that under its “high renewables” scenario, by 2050, solar photovoltaics and concentrated solar power would contribute about 16 and 11 percent, respectively, of the worldwide electricity consumption, and solar would be the world’s largest source of electricity. Most solar installations would be in China and India.

Photovoltaics were initially solely used as a source of electricity for small and medium-sized applications, from the calculator powered by a single solar cell to remote homes powered by an off-grid rooftop PV system. As the cost of solar electricity has fallen, the number of grid-connected solar PV systems has grown into the millions and utility-scale solar power stations with hundreds of megawatts are being built. Solar PV is rapidly becoming an inexpensive, low-carbon technology to harness renewable energy from the Sun.

Commercial concentrated solar power plants were first developed in the 1980s. The 392 MW Ivanpah installation is the largest concentrating solar power plant in the world, located in the Mojave Desert of California. The 579 MW Solar Star, near Rosamond, California, is the world’s largest PV power station.

It’s important to calculate your annual return on investment when you’re considering solar panels. Use the Solar Panel ROI Worksheet from Renewable Energy Corporation to determine your cost and benefit.

Knowing how to calculate your potential return on investment from solar panels can make your purchasing decision easier. When considering an investment in solar panels, it’s important to look at two calculations: annual ROI and payback period. The ROI is how much return on your investment you’ll get each year. The payback period is the timeline for when your solar panels have paid for themselves.

Solar Panel ROI Worksheet by Renewable Energy Corporation