Design and Return on Investment Analysis of Residential Solar Photovoltaic Systems

Due to the increasing cost effectiveness of solar panels, the growing demand for renewable energy sources, and the U.S. government's financial support, the adoption of solar energy has soared in the past few years. According to the PV Market Report, presented by the European Photovoltaic Industry Association, the cumulative installed capacity of photovoltic (PV) systems around the world rose from 4.07 GW in 2010 to 10.12 GW in 2012. As shown in this report, Europe remains the predominant leader in the global PV power market and possesses a 75% share of new installations. The report also illustrates that in the United States approximately 1.8 GW of PV systems were installed, yielding a cumulative total of 214,000 operating systems in 2011. The significant growth of solar PV installation was highly enhanced by federal energy incentives and utility rebate programs that reduced the cost of PV systems. In particular, the high average sunshine hours in California correlate to significant statewide installations of grid-tied solar PV systems.