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Best Investments in Solar & Wind by State & Utility
Find the Best States & Utilities for Solar & Wind Energy System Investments.
Best Investment Returns for Residential Solar & Wind in the USA: Top 30 *
|Solar Electric (PV)||Solar Water Heating||Wind Turbines|
* - NOTE: Alaska has been excluded from the Top listing (above) because of the small market size relative to the continential USA and Hawaii. However, due to generally high electricity and fuel prices in Alaska the financial returns can be very good.
Financial Terms used in Solar & Wind Investment Analysis
Profit Index (PI) is a measure of investment efficiency. If PI is 1, every dollar invested returns a dollar. If greater than 1, the investment returns more than a dollar for each dollar invested. If less than 1, the investment may not return the full value of the investment over the assumed system life.
Payback - A Measure of Security: The most commonly used measure of the security of a proposed investment is its payback, defined as the length of time until one gets one`s money back. Cashflow Payback is the moment when the cumulative cash in-flows exceed the total of all cash out-flows.
Internal Rate of Return (IRR): is another common measure of investment efficiency. It is defined as the interest rate that causes the projectís net present value (NPV) to equal zero, and is equivalent to the yield to maturity of a bond. The internal rate of return (IRR) on an investment or potential investment is the annualized effective compounded rate of return that can be earned on the invested capital.
Net Present Value (NPV) is an indicator of how much value an investment or project adds to the customer. If NPV is positive then the investment would add value. If NPV is zero or negative then other "qualitative" factors may add adequate value to justify the project (for example, lengthening a swimming pool season). Net Present Value (NPV) is one way to account for the time value of money. NPV calculates the current value of each future cash flow. For example, $1.00 received two years from now is equivalent to something less today, if it can be invested now at some interest rate. This allows us to "discount" the cash flows (whether positive or negative) that the proposed investment is expected to generate at various times in the future back to their equivalent value today (that is, their "present value"). If one then subtracts the cost of the proposed investment from the sum of the present values of the ongoing cash inflows, one obtains the net present value (NPV) of the investment.
How you Might Use This Ranking Report for Marketing Solar & Wind Energy Systems
When determining where to focus your sales & marketing efforts for solar, pv or wind energy systems these reports will be useful. The states and utilities offering a combination of strong incentives and high utility rates will generally provide the best solar and wind energy investments for home or building owners. Of course it also helps to have strong renewable resources (solar and/or wind). This report takes these factors into consideration to help you define which customer profiles may be your best target markets for selling solar and wind energy systems. To best pin point your marketing and sales efforts, consider this in combination with other demographic data, such as median household incomes (by county, city, locality or region) and the percentage of home owners (versus renters).
The US Census Bureau has data that you will find helpful: US Census Data