Comment by hectormalot 12 hours ago
It depends. 80% of my electricity cost is taxes. If I produce it using PV, the consumption is never taxed, and the benefit is pretty substantial, on top of the market electricity price. (One rarely finds low risk investments that return 20-25% year)
Netherlands. No distribution fees are separate.
Roughly speaking the electricity is about €0.06 with about €0.20 in taxes on top. So offsetting consumption nets me about €0.26 cents per kWh.
The installation of a 2800kWp system cost me about €2600 and generates between 2400-2750kWh annually, so about €650 euro. In a 10 year timespan that’s an IRR of 20%, creeping up to 25% for 20 years.
Thanks for the numbers! I had no idea taxes were such a large fraction elsewhere. Good to know/consider. I'm most familiar with California. (and actually can't give a % that is taxes offhand)
After the first year of having PV, I determined my own payoff time of about 5-7 years, so that was nice and self-justifying, and haven't dug deeper into details on that.
Curious where you are roughly located; Does that 80% include the distribution of the electricity?
Should I interpret the 20-25% returns as being, your annual savings on the utility bill are 20-25% of the cost of your PV install?