BEST COMMERCIAL SOLAR MARKETS

The payback period for solar is a function of electricity prices and project costs.  Project costs are generally within a 10-15% range depending on labor rates in different states, but electricity costs are the big variable that really drive the viability of a successful project.  

For example here are some commercial and industrial kWh pricing in a few of the key states that Solar CFO uses to underwrite our projects:

• Hawaii solar market is one of the best because it has some of the highest electricity prices in the country at over $0.30 per kWh.  
• California also has very high rates:  SDGE approx $0.30 per kWh, PGE approx $0.22 per kWh, and SCE approx $0.16 per kWh.  There is also a great program within the LADWP territory which allows owners to max out their rooftops with solar and sell into the grid for $0.135 to $0.145 per kWh.
• Massachusetts has a state program that buys electricity for approximately $0.16 to $0.24 per kWh for 20 years (based upon a sliding scale and your region), plus another $0.05 if you add batteries.
• New Jersey launched Pilot 3 of their community solar program which pays $0.10 per kWh for 15 years and also has a TREC program that pays similar rates.
• Many other states also have pending legislation which will increase the viability for solar projects in those states.