The Viability of Small Photovoltaic (PV) Systems Installation

1218 Words 5 Pages
The purpose of this analysis is identification of the relative impact of economic factors for entities contemplating entry into the Midwest Region solar energy installation market as installers of solar photovoltaic energy systems (PV systems) for homes and small businesses.
Many individuals are concerned with renewable energy. They believe it provides a reduction in utility consumption and cost. They also believe government subsidies, and environmental preservation makes the idea more attractive to potential clients. However, entry to the PV system installation market is not without financial risk.
The following research of applicable economic variables and subsequent recommendation might sufficiently illuminate the important issues leading to an informed decision whether a venture in PV installation is justified. Research of demand and supply factors within the target market, coupled with current and future PV market trends and their corresponding impact on revenue, provide a solid analytical foundation for determining the viability of a PV installation business venture.

The first requisite analysis is of income, or the amount purchasers have to spend on a particular good or service. To evaluate this factor I researched the Consumer Price Index (CPI) for the Midwest. Bureau of Labor Statistics data indicates The CPI for consumers in the Midwest increased overall by 0.3 percent in April 2014, and by 1.9 percent between April 2013 and April 2014 (U.S. Bureau of…