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There have been several projects with solar installations in Sweden, and Sala-Heby Energi (SHE) wanted to create a solar plant. The question answered in this thesis is whether it is economically viable to create such a source of sustainable, renewable energy. The plant would be built with the help of the financial effort from 120 customers. This economic union would sell the electricity to the SHE, for SEK 4.50 per kWh up to a certain level over a period of 10 years. It would be a long term commitment to environmentally friendly electricity, using solar cells which convert sunlight directly into electricity.

In year 2009 there was introduced a new state aid for photovoltaic systems, to create an increased and continuing interest in solar cells. The premium is 60% of the cost of the entire solar installation, both parts and labor. The project in Sala-Heby receives 2000KSEK as financial aid from the Swedish state. In order to assess the economic conditions for the project, the

payoff-method helps us to calculate how long it takes to get back the money invested. The price determines how much equipment you can buy and calculating with an investment of 1500KSEK and state aid of 2000KSEK, we can buy solar panels for 3500KSEK. It is likely that the solar plant will produce 56000kWh per year due to the weather in the region. Sold at 4.5 SEK per kWh gives 252KSEK per year. So according to the payoff method, the repayment period for an investment of 1500KSEK (divided by 252KSEK) 6 years. The conclusion of this thesis is that the repayment period for the investment in solar cell plant is 6 years, and if the revenue of the project is used for project expansion, it could lead to further growth in revenue for the plant. There are several factors that are crucial to make this project possible. The State aid is necessary, because the high costs of building a solar plant. In this project, we have a good profitability thanks to SHE buying electricity from the sun for a price that is higher than the market price. Invite major electricity producers to follow SHEs example, while the government retains remaining aid. Without state aid, it is impossible to get this economic calculus together, and the project in Sala-Heby had come to nothing.