One of the most frequently asked questions to consultants and specialists in the solar energy industry is how efficient is the investment in a solar power installation – small or large.
We want to look at a very simple model of economic efficiency where are interested in the annual return on investment. A project involving a solar photovoltaic installation requires certain amount of capital to be built and will expect certain amount of annual revenue. The simple indicator of efficiency that we want to study is this annual return in invested capital.
