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The Decision to Install a Rooftop Photovoltaic System by a Small Business: A Case Study

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  • Schwartz, Demitrius
  • Batabyal, Amitrajeet

Abstract

The potential of rooftop solar power has been identified as a main driver of clean energy adoption in an urban environment. While residential solar projects have lower capacity than commercial systems, residential solar represents most of the installation base for rooftop solar projects. Rooftop solar adoption in the commercial market lags residential solar installation. To better understand why this is the case, we conduct a case study of a small, manufacturing firm. Based on the firm's energy demand and the physical attributes of its location, we study a 25-kilowatt solar array using the National Renewable Energy Laboratory’s (NREL) System Advisor Model (SAM). Our empirical study is used to evaluate the economic prospects of a rooftop solar installation project for the firm under study. This analysis sheds light on the financial ramifications of the adoption of solar panels by small, commercial firms in New York state.

Suggested Citation

  • Schwartz, Demitrius & Batabyal, Amitrajeet, 2023. "The Decision to Install a Rooftop Photovoltaic System by a Small Business: A Case Study," MPRA Paper 120361, University Library of Munich, Germany, revised 01 Mar 2024.
    • Handle: RePEc:pra:mprapa:120361
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    More about this item

    Keywords

    Decision-Making; Incentive; Photovoltaic System; Solar Energy; Small Business;
    All these keywords.

    JEL classification:

    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources

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