The Business Case for PV

"Clean, reliable, affordable electricity from the sun......that's what we do."

For Hawaii businesses, a Hoku PV system offers not only an opportunity to stabilize costs and gain competitive advantage, but it is a capital investment with a calculable Return on Investment (ROI).

Considering PV: Performance & Power

Performance - PV is an excellent value.

PV provides an excellent return on investment because of the annual savings from power no longer purchased, and because of the associated Federal investment tax credit (30% of the cost of the system) and State energy tax credit incentives (35% of the cost of the system in tax credits, or 24.5% of the cost of the system in lieu of the tax credit).

In many cases, an investment in PV may also increase the value of your property. The system itself has real value, and it can also increase the cooling efficiency of your home or office, while extending the life of your roof.

Power - PV components and technologies are proven.

Today's PV systems are built of reliable, solid state technology that has been rigorously tested, certified by the Underwriters Laboratories, and others, and deployed in the field with more than 40 years of in-service use.

It is important to think of PV as a long-term investment. In most cases, the solar panels, or modules, are covered by a 20+ year performance warranty, and they can be expected to continue generating electricity long after that.

When paired with battery storage banks, PV systems can also provide firm, uninterruptable power supplies for critical loads like computer servers or monitoring equipment. These types of battery back-up systems can also used to ensure reliable power during grid failures or blackouts.

ROI

Energy in Hawaii is tied to oil and is expected to continue increasing in cost

Despite Hawaii's creditable leadership on clean energy initiatives, households and businesses will remain very vulnerable to oil price volatility for many years to come.

See Graph

PV provides protection from energy price fluctuations and stabilizes costs

PV pricing is stable and cost competitive - even before factoring in the available tax credits. Although PV costs may come down further, average pricing has improved over the past year.

See Graph

On an average cost-per-kilowatt basis, Oahu residential and commercial grid power is already at or near parity with PV costs - even before you consider available Federal and State investment and energy tax credits. And, with the average cost of grid electricity expected to increase over time, cost savings from PV will only continue to improve.

Regardless of the price of grid electricity, though, you will save money with a PV system. Energy costs are a significant part of operating and living expenses in Hawaii. Your investment into clean power for your home or business will pay itself back quickly thanks to tax incentives and avoided expenditures on energy.

See Graph

Environmental Considerations

PV offers the future of energy now. It is both environmentally friendly and economically sensible.

PV is a cleaner way to power your life. This is a 100% renewable energy source since the modules can be recycled after their service life. It also produces minimal carbon emissions, and can be expected to generate roughly a 9:1 return on the energy invested to manufacture the systems.

Time Matters

The sooner you install, the more you can save.

Owing to the time-value of money, investing in a PV system is similar to investing for retirement – the sooner you begin the more valuable your investment becomes.

Also, while the current investment incentives are excellent, they are impermanent. As government subsidies change and grid electricity prices continue to increase, there will be less need for tax incentives to encourage investment in clean energy. It is possible that the current benefits will begin to be phased out, or at least reduced in scope and applicability.

Back to top