Assessment of cost-competitiveness and profitability of fixed and tracking photovoltaic systems: The case of five specific sites

Talavera, D.L.; Muñoz-Cerón, Emilio; Ferrer‐Rodríguez, Juan P.; Pérez‐Higueras, P.

doi:10.1016/j.renene.2018.11.091

Cited by 76 publications

(36 citation statements)

References 24 publications

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“…The IRR considers the value of money over time and determines the interest rate at which the NPV is equal to zero. For Talavera et al [50], the economic profitability analysis is based on several criteria. One of them, the discounted return on investment time, provides information on the liquidity of the investment value, while the rest of the parameters deal with the project's profitability.…”

Section: Investment Costmentioning

confidence: 99%

Identification and Analysis of Impact Factors on the Economic Feasibility of Photovoltaic Energy Investments

et al. 2020

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The introduction of environmental impact targets around the world has highlighted the need to adopt alternative sources of energy, which can supply the demand and mitigate the damage caused to the environment. Solar energy is one of the main sources of alternative energy, and is considered an abundant source of clean energy. However, to facilitate and encourage investors interested in the installation of photovoltaic energy systems for electricity production, it is essential to evaluate the factors that impact the economic viability of the projects. Therefore, the objective of this research is to present a systematic analytical framework, in order to identify and analyze the main factors that impact the financial feasibility of projects for the installation of photovoltaic energy plants. For this purpose, a systematic literature review was carried out, analyzing the main studies related to the topic and identifying the main factors that may financially affect investments in photovoltaic energy systems. From this review, 29 influencing factors were identified and separated into five categories, namely, location, economic, political, climatic and environmental, and technical factors. The main factors highlighted are the investment cost, power generation, operation and maintenance costs, solar radiation, lifetime, energy tariff, efficiency, electricity consumption, and interest and taxes. The results may assist policy makers, investors, researchers, and other stakeholders to identify the key factors that are being examined in the literature, and to evaluate which ones should be considered in their study to ensure the sustainable development of power generation through the solar source.

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Section: Investment Costmentioning

confidence: 99%

Identification and Analysis of Impact Factors on the Economic Feasibility of Photovoltaic Energy Investments

et al. 2020

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“…Some of these criteria have already been used in previous works related to RES systems in general and PV systems in particular. In [18] the authors used NPV, IRR and LCOE, among other economic criteria, to assess the cost-competitiveness and profitability of fixed and PV systems with tracking mechanism. The same three criteria were selected in [19] to undertake a technoeconomic analysis or three small PV self-consumption projects located in different cities of Peru.…”

Section: Economic Analysis Of Different Residential Pv Systemsmentioning

confidence: 99%

“…It is one of the most common metrics for measuring and comparing investments [20,21]. The NPV of a PV project is the difference between the present values of the cash flows (in and out) generated throughout the lifetime of the project [18,19,20] and it can be calculated by the expression:…”

Section: Net Present Valuementioning

confidence: 99%

“…The decision boundary for the NPV is as follows [18,20]: for positive values of NPV the investment can be accepted and the bigger the NPV value, the more appealing it becomes. Otherwise, if negative values of NPV are obtained, the investment should be rejected.…”

Section: Net Present Valuementioning

confidence: 99%

“…The IRR is the profitability (%) expected from a project and it is the value of the discount rate (d*) that leads to NPV=0. It represents the average earning power of the money used in the project over its lifetime [18,19,21]. A high IRR indicates that the investment opportunity is favourable, and in order for a project to be feasible, the IRR has to be greater than the discount rate used for the economic calculations [18,19] and can be calculated from the equation:…”

Section: Internal Rate Of Returnmentioning

confidence: 99%

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Assessing E3 impacts of RES integration using residential consumer’s willingness to invest in PV systems

Figueira¹,

Coelho²,

Lopes³

2020

EAI Endorsed Transactions on Energy Web

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This paper presents an assessment of the Economic, Energy and Environmental (E3) impacts of different scenarios related to the penetration of renewable energy systems in an urban context. For this purpose, Coimbra, a medium sized Portuguese city, has been chosen as decision-making set. The results of a survey aiming at analysing and evaluating the perceptions and willingness to invest in residential photovoltaic systems, along with a technical and economic evaluation of different photovoltaic systems focusing on the installed power, together with the data characterizing the housing stock of the city, have been used for the definition and analysis of three scenarios. The obtained results, pointing to a relatively small contribution from the photovoltaic component to the overall city residential electricity consumption, may be considered by electricity operators and can help policy-makers to define stronger measures to support the installation of residential renewable energy systems.

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Residential photovoltaic and energy storage systems for sustainable development: An economic analysis applied to incentive mechanisms

D'Adamo,

Dell'Aguzzo,

Pruckner

2023

Sustainable Development

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The photovoltaic (PV) system has a very significant growing global trend and its role is essential in combating climate change. However, its intermittent nature requires integration with a battery energy storage system (BES). This work proposes an economic analysis based on net present value (NPV) for an integrated PV + BES system in a mature market (Italy). The analyses are applied to different policy (used for both PV and BES) and market (purchase price, selling price) contexts. Results show that the NPV(PV) ranges from 1061 to 7426 €/kW. The work identifies the conditions under which BES is affordable. The required increase in self‐consumption varies in the 14%–35% range. The purchase price and the percentage of energy‐self‐consumption play a crucial role in the profitability assessment of a PV + BES system. Incentive policies based on subsidized tax deductions and subsidies for energy produced and self‐consumed can enable a more sustainable energy future in the residential sector. This work suggests a mix of policy choices: (i) a subsidized tax deduction larger than 50% and a bonus for energy produced and self‐consumed for PV plants; (ii) subsidized tax deduction also for BESs but at a lower value than for PV plants; and (iii) encouraging a recycling industry.

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Assessment of cost-competitiveness and profitability of fixed and tracking photovoltaic systems: The case of five specific sites

Cited by 76 publications

References 24 publications

Identification and Analysis of Impact Factors on the Economic Feasibility of Photovoltaic Energy Investments

Identification and Analysis of Impact Factors on the Economic Feasibility of Photovoltaic Energy Investments

Assessing E3 impacts of RES integration using residential consumer’s willingness to invest in PV systems

Residential photovoltaic and energy storage systems for sustainable development: An economic analysis applied to incentive mechanisms

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