Feasibility Analysis of Solar Power
Installation for Residential Energy
Optimization in State College, PA
a
Contents
Introduction ............................................................................................................................................ 2
Energy Generation .................................................................................................................................. 2
Economic Analysis: Break-Even Point .................................................................................................. 2
1
Introduction
Solar power energy systems operate on the principle of converting sunlight into electricity using
photovoltaic (PV) panels. These panels contain semiconductor materials, typically silicon, that absorb photons
from sunlight. Triggering the release of electrons from the atomic structure of silicon which has 4 valence
electrons, resulting in the production of an electric current. The semiconductors used is in photovoltaic cells is
made using doped thin slices of crystalline silicon called wafers, the doping is done by adding impurities to
silicon, there are essentially two types of doping done to a silicon wafer. N-type doping involves the addition
of atoms of elements with surplus electrons into the silicon crystal, while P-type doping involves the
introduction of atoms of elements with electron deficiencies. The silicon wafers that have been doped create a
p-n junction. This junction is the site of the photovoltaic effect. This current is then harnessed at that site and
converted from direct current to alternating current through an inverter.
The advantages of solar power are substantial. Solar energy is freely generated using one of nature's
largest fusion generators, all that must be done is harnesses the power. Solar panels have little to no
maintenance cost only an upfront initial installation cost. The most significant advantage is producing no
greenhouse gas emissions during operation, and the greenhouse gases released while the creation of
photovoltaic cells is not significant as the offset is much higher. Solar panels reduce the carbon footprint of
electricity consumption. Furthermore, government incentives enhance their economic feasibility.
The disadvantage is that the solar panel is weather dependent, it can only generate electricity based on
sunlight availability, and the need for space to install sufficient panels to meet energy demands, which
geographically limits where the solar panel can be placed. Although is this case study the location is indeed
suitable location. (CLEANTECH.SA, 2022)
Energy Generation
In 2024, each panel has an efficiency ranging from approximately 19.7% to 21.6%. A more efficient
system comes at a significantly higher cost, with minimal or no difference in the final output. Each panel
creates approximately 2kWh per day but due to inefficiency and varied weather patterns an average solar
panel will create 1.3kWh in state college on average (solar-estimate.org, 2024). The total energy created per
year on average is 33,215 kWh (AC) and the total energy created per day is approximated to 91kWh. The
daily average for energy consumed is-51.943kWh
The system appears to create a lot more energy than required however this is not the case the energy
consumed per day is in the range of 8.23kWh to 148.36kWh. Some days there will be excess energy produced
that can be returned to the grid. In the end the solar powers can offset the energy usage throughout the year
based on the provided data. Monthly Energy Generated can be found in appendix table 1.
Economic Analysis: Break-Even Point
The system recommend above has an average cost including everything is between $55,154-$90,943
(solar-estimate.org, 2024). The federal tax credit after the recent rule changes is 30% of the total installation
cost of the solar system, including parts and labor (Electrum, 2024). The total tax credit received is between
$16,546 to $27,253 The total cost after incentives received is between $38,608 to $63,590.
The excess energy produced can be sold back to the grid at the same price that the initial electricity
was purchased (EnergySage, Inc, 2024). Therefore $172.5 per month on average profit from just the
electricity sold back to the grid. Pennsylvania also offers SRECs (Solar Renewable Energy Certificates) that
each certificate is received per 1MWh energy created by renewable sources. Which can be sold to the market
at the rate between $30 to $45 per certificate (SRECTrade, Inc, 2024). On a monthly average the system can
receive 2.73 certificates per month on average the system can make an additional $102.375. The total
opportunity profit per month $511.875 best case scenario.
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It will take between 6.2 years and 10.3 years to break even. Solar panels usually last 20 to 30 years once the
system is paid for, it will start creating profit. Calculations can be found in the appendix.
Energy Over a Year: Data Visualization
Graph 1
All solar generation data in state college was collected from (NREL U.S. Department of Energy, Office of
Energy Efficiency and Renewable Energy, 2024)
Value add: Annual Income from Excess Energy
If the trend in the graph continues annually there will be a surplus 14284.97 kWh and total energy
generated from the system would be 33.246 MWh. After selling the energy back and SERCs in the market the
annual profit is $3389.47. The total profit (including opportunity profit) is $6233.697 annually,
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Appendix
A; Energy Generation
Solar energy generation (Lane, 2024)
(𝑝𝑜𝑤𝑒𝑟 𝑟𝑎𝑡𝑖𝑛𝑔 𝑜𝑓 𝑒𝑎𝑐ℎ 𝑠𝑜𝑙𝑎𝑟 𝑝𝑎𝑛𝑒𝑙 − 15%𝑓𝑜𝑟 𝑖𝑛𝑒𝑓𝑓𝑖𝑐𝑖𝑒𝑛𝑐𝑦) ∗ 𝑝𝑒𝑎𝑘 𝑑𝑎𝑦 𝑙𝑖𝑔ℎ𝑡 ℎ𝑜𝑢𝑟𝑠 ∗ 70 ∗ 31
= 𝑒𝑛𝑒𝑟𝑔𝑦 𝑔𝑒𝑛𝑒𝑟𝑎𝑡𝑒𝑑 𝑝𝑒𝑟 𝑚𝑜𝑛𝑡ℎ
(0.400𝑊 − 15%) ∗ 2.681 ∗ 70 ∗ 31 = 1977.509𝑘𝑊ℎ
Month
1
2
3
4
5
6
7
8
9
10
11
12
Daily Average POA Irradiance (kWh/m2/day)
2.681
3.438
4.265
5.242
5.424
5.804
6.057
5.476
5.018
3.537
2.778
2.086
AC System Output (kWh)
1977.509
2215.762
2942.588
3309.946
3453.126
3518.246
3732.793
3362.449
3060.773
2315.159
1861.945
1496.18
Table 1
Average daily generation
70 ∗ 1.3 = 91𝑘𝑊ℎ
Average monthly generation
91 ∗ 30 = 2730𝑘𝑊ℎ
Average yearly generation
91 ∗ 365 = 33,215𝑘𝑊ℎ
Average daily energy usage
𝑇𝑜𝑟𝑎𝑙 𝑒𝑛𝑒𝑟𝑔𝑦 𝟏𝟖𝟗𝟔𝟏. 𝟓𝟏
=
= 51.943𝑘𝑊ℎ
365
365
B, Breaking even
Tax credit
55145 ∗ 30% = $16,546
and
90943 ∗ 30% = $27,253
Average monthly usage average monthly usage is 1580kWh with a $0.15/kWh rate,
1580 ∗ 0.15 = $237
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The average monthly energy created surplus is 1150kWh
2730 − 1580 = 1150𝑘𝑊ℎ
Profit after selling electricity back.
1150 ∗ 0.15 = $172.5
Profit from selling SERCs in the market
2.73 ∗ 37.5 = $102.375
Total cash gained from the solar power system in 1 month on average
$172.5 + $102.375 + $237 = $511.875
The time required to break even during the best-case scenario, 𝑇𝑜𝑡𝑎𝑙 𝑐𝑜𝑠𝑡 𝑜𝑓 𝑠𝑦𝑠𝑡𝑒𝑚
38608
=
= 75.5 𝑚𝑜𝑛𝑡ℎ𝑠 = 6.2 𝑦𝑒𝑎𝑟𝑠
𝑃𝑟𝑜𝑓𝑖𝑡 𝑝𝑒𝑟 𝑚𝑜𝑛𝑡ℎ
511.875
63590
= 124.22𝑚𝑜𝑛𝑡ℎ𝑠 = 10.3
511.875
C, Value adds
Profit annually(14284.97 ∗ 0.15) + (33.246 ∗ 37.5) = $3389.4705
Opportunity profit is money that would have been spent if solar power were not installed
18961.51𝑘𝑊ℎ ∗
0.15$
= $2844.2265
𝑘𝑊ℎ
Total profit
𝑃𝑟𝑜𝑓𝑖𝑡 + Opportunity profit = total profit
$3389.4705 + 2844.2265 = $6233.697
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