Keller Econ 545 Project

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Solar Panel Services Keller Graduate School of Management Business Economics (ECON-545) March 21th, 2015 Introduction My neighbor Cindy is asking my advice about her new idea of running a contracting business for the installation of solar panels. She is interested about the cost savings that households and business can take advantage of as a competitive advantage to promote the investment. In addition, she thinks that consumers will be willing to invest in solar panel services due to the reality that these days individuals are concerned about the environment and also they wish to reduce pollution somehow. However, Cindy is concerned about risking her life savings on a venture that might not succeed or become profitable enough. In the…show more content…
(p.74) According to the Energy Information Administration (2013), in the chart about electricity generation by fuel, for 2040 sixteen percent of the electricity is going to come from renewable sources. EIA. (2013) http://www.eia.gov/forecasts/aeo/er/early_elecgen.cfm 4 Tastes According to Shahan (2014) "in the state of Florida going solar cost around to $24,692 resulting in monthly savings around to $139. Over time you could save $33,284, with a repayment period of about 16 years". (n.d.) The economic analysis varies state to state due to solar power incentives, permitting requirements, federal tax deductions, and some other solar regulations. Government incentives for installing solar panels are changing tastes and preferences of consumer. As Energy Sage (n.d.) stated, "You can reduce the upfront cost of your solar panel system by 30% to sometimes more than 50% by using all the rebates, tax credits and incentives available to you. By taking full advantage of these financial incentives, the annual returns on your investment will improve significantly". (n.p.) For example, my father went solar two year ago in my home country. He reduced his electricity bill in over 85% investing around $15,000. He is happy about it, but his tastes has changed dramatically about renewable energy. Now he is committed to reduce pollution as a good social purpose. According to Hubbard & O'Brien (2013), "Taste is a catchall category

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