The Financial Viability of a 2 MW Solar Photovoltaic Installation in the Industrial Sector of New Jersey

Abstract

The state of New Jersey has one of the more progressive solar energy policies in the nation and is currently second in the United States for total installed capacity of solar photovoltaic (PV) technology. This paper examines the financial viability of a 2 megawatt solar photovoltaic installation in the industrial sector of New Jersey given current federal and state renewable energy incentives, solar market dynamics, and projected utility rates. The financial analysis compares the outcomes of a power purchase agreement and private investment to the finances of a business-as-usual approach to fulfill the energy demand of an industrial sector site. The analysis will measure the ability of a solar photovoltaic installation to leverage against rising and volatile energy costs while serving as a means of cost-reduction or investment opportunity. Finally, the results and inputs of the analysis will additionally give insight to the effectiveness of New Jersey solar policy.