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Lumifer comments on Open Thread, September 30 - October 6, 2013 - Less Wrong Discussion

4 Post author: Coscott 30 September 2013 05:18AM

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Comment author: Lumifer 08 October 2013 08:21:32PM 2 points [-]

But in this case, the panels produce (hopefully) a pretty constant annual amount of electricity, and the price I get is a fixed amount, so it seems that calculating IRR is easy.

Your calculation is presumably for a fairly long term. In the long term prices don't remain fixed, things break down, need maintenance, etc. For example, hail might damage some of your panels. Or your roof might start to leak and the presence of the panels will substantially add to the cost of repairing it.

Comment author: JoshuaFox 08 October 2013 08:42:15PM 0 points [-]

Excellent. I had an overly-simplistic mental model in which the panels would last until they fail.

But yes, unexpected costs that are nonetheless below full price of the panels are a real possibility.

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