Economic analysis of photovoltaic systems for local governments in California

Electrical energy from sunlight, through the use of photovoltaic solar-electric rooftop systems, is proving to be a viable alternative to nonrenewable energy sources. Through cost-benefit analysis, this thesis examines the question of whether the installation of photovoltaic (PV) systems by local municipalities were economically sound and if PV systems were effective in reducing air pollution.; Eleven municipalities in Northern California were studied using a Market Valuation technique of discounting benefit and cost streams over a 25-year time period to Present Value and quantifying displacement of air pollutants. Results demonstrated that 8 out of 11 photovoltaic projects were less expensive in the long-term than paying the local utility company, and the volume of air pollutants displaced was sizable. State-financed rebates and net-metering policies are critical factors that enable municipalities to approve photovoltaic projects; without them, it will probably be difficult for future photovoltaic projects to receive approval.