Economic analysis of photovoltaic systems for the residential market under China's new regulation

Rodrigues, Sandy; Chen, Xiaoju; Morgado‐Dias, Fernando

doi:10.1016/j.enpol.2016.10.039

Cited by 68 publications

(38 citation statements)

References 18 publications

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“…NPV, DPBT and LCOE are three financial typically used indicators. The first is defined as the sum of present values of individual cash flows, the second represents the number of years needed to balance cumulative discounted cash flows and the initial investment and the third ascribes all future costs to the present value, resulting in a present price per unit energy value [27][28][29]. NPV does not consider the size of the plant and consequently the ratio between NPV and size of PV system is also used.…”

Section: Methodsmentioning

confidence: 99%

Economic Analysis of a Photovoltaic System: A Resource for Residential Households

2017

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New installed annual solar photovoltaic (PV) capacity was equal to 76.1 GW in 2016 (+49%), reaching the total of 305 GW around the world. PV sources are able to achieve a greater energy independence, to tackle the climate change and to promote economic opportunities. This work proposes an economic analysis based on well-known indicators: Net Present Value (NPV), Discounted Payback Time (DPBT) and Levelized Cost of Electricity (LCOE). Several case studies are evaluated for residential households. They are based on three critical variables: plant size (1, 2, 3, 4, 5 and 6 kW), levels of insolation (1350, 1450 and 1550 kWh/(m 2 ×y)) and share of self-consumption (30%, 40% and 50%). The profitability is verified in all case studies examined in this work. The role of self-consumption, that is the harmonization between demanded and produced energy, is strategic in a mature market to improve financial performance. A sensitivity analysis, based on both electricity purchase and sales prices (critical variables), confirms these positive results. The Reduction in the Emissions of Carbon Dioxide (ER cd ) signifies an environmental improvement when a PV system is used as an alternative to a mix of fossil fuels. Finally, a policy proposal is examined based on a fiscal deduction of 50% fixing the period of deduction equal to 5 years.

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Section: Methodsmentioning

confidence: 99%

Economic Analysis of a Photovoltaic System: A Resource for Residential Households

2017

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“…As in the first point the investment project is discarded with a negative NPV. 4. NPV(PV + ESS) > 0 can be produced by two different scenarios.…”

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confidence: 99%

“…An analysis of the Chinese market underlines as the best economic performances are reached in the territories with better solar radiation or where the electricity price is higher. Furthermore, the other two critical variables are investment cost and the regional Feed-In Tariffs (FIT) [4].…”

Section: Introductionmentioning

confidence: 99%

The Economic Feasibility of Residential Energy Storage Combined with PV Panels: The Role of Subsidies in Italy

2017

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A solar photovoltaic system produces electricity by converting energy from the sun. By the end of 2016, the global installed solar photovoltaic capacity reached 305 GW. Its growth is impressive in the last years; in fact, it was only equal to 41 GW in 2010. However, Europe has installed only 6.9 GW in 2016 (−1.7 GW in comparison to previous year) and this annual power installed is equal to 9% of global one in according to data released by Solar Power Europe. The profitability of PV systems in mature markets depends on the harmonization between demanded energy and produced one residential energy storage when combined with photovoltaic panels is able to increase the share of self-consumption. This work proposes a mathematical model, in which a Discounted Cash Flow analysis is conducted to evaluate the financial feasibility of photovoltaic-integrated lead acid battery systems in Italy. The indicator used is Net Present Value. Furthermore, a break-even point analysis, in terms of an increase of self-consumption, is conducted. The residential sector is investigated and energy storage system investment is incentivized by fiscal deduction and regional subsidies. The analysis provides several case studies, determined by combinations of the following variables: photovoltaic plant size, battery capacity, the increase of the share of self-consumption, and the useful lifetime of energy storage system. The same case studies are proposed also in four alternative scenarios, where is the modified the structure of subsidies. Results confirm that the profitability can be reached in presence of subsidies.

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“…To maximize the absolute returns for the property owners the NPV for energy production is optimised. The cost-effectiveness analysis of three different sized PV systems for the residential market is performed in five Chinese cities under China's new regulation is presented in [21] and is based on the NPV and IRR calculation along with the Discounted Payback Period (DPBP). NPV was used as the decisive financial metric in the economic analysis conducted in [22], regarding the economic feasibility study of PV rooftop systems in Sweden, carried out to examine the effects of current market conditions, incentives programmes and building specific parameters.…”

Section: Economic Analysis Of Different Residential Pv Systemsmentioning

confidence: 99%

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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Economic analysis of photovoltaic systems for the residential market under China's new regulation

Cited by 68 publications

References 18 publications

Economic Analysis of a Photovoltaic System: A Resource for Residential Households

Economic Analysis of a Photovoltaic System: A Resource for Residential Households

The Economic Feasibility of Residential Energy Storage Combined with PV Panels: The Role of Subsidies in Italy

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

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