Financing of Residential Rooftop Photovoltaic Projects Under a Net Metering Policy Framework: The Case of the Colombian Caribbean Region

Abstract

The inclusion of photovoltaic energy in the Colombian energy matrix has had several difficulties due to the lack of energy policies and regulations in renewable energy projects. The lack of government support with subsidies that extend the coverage of PV energy projects in residential areas has made the collection of funds more challenging. This paper presents a techno-economic analysis for the implementation of grid-connected photovoltaic projects on the roofs of residential areas, under the net metering policy framework. For the profitability analysis, the discounted cash flow (DCF) method was used. The revenues were obtained from the forecasts of the electrical power production of the PV system, based on the characteristics of the Colombian Caribbean Region. For this purpose, the meteorological data (2013)(2014)(2015)(2016)(2017) of this region were used as an input for the calculation of the economic benefits that can be achieved with the implementation of PV systems. Based on the technical sizing and economic assumptions, it was proved that the DCF method allows to accurately determine the optimal debt ratio. After evaluating the three scenarios proposed, it was demonstrated that profitability and self-sustainability, with investment from creditors, is obtained from the implementation of PV systems of at least 3 kWp.

Technical and Financial Analysis for the Implementation of Small-scale Self-generation Projects, based on Grid-Tied Photovoltaic Solar Energy, for Residential Users under Colombian Regulations

“…The systems produce the energy demanded by the users in each stratum, although they exceed the production by a margin of 2%. As a result, the sale of excess energy at the exchange price is minimal and will only occur during the first three years, considering the system's degradation rate of 0.7% annually (Ospino-Castro et al, 2020). Figure 2 shows the annual energy generation compared to the demand over the same period.…”

“…Various research studies have highlighted the technological maturity and reliability of photovoltaic systems, demonstrating their ability to locally generate clean and renewable electricity (Ellabban et al, 2014;Muñoz et al, 2014;Khan and Arsalan, 2016;Lai et al, 2017;Lupangu and Bansal, 2017;Peña-Gallardo et al, 2020;Shafiullah et al, 2022;Østergaard et al, 2022). Furthermore, there is a progressive focus on assessing the economic viability of these projects, with careful evaluation of potential savings in the electricity bill and the environmental benefits associated with the adoption of this technology (Peña-Gallardo et al, 2019;Ospino-Castro et al, 2020;Duman and Güler, 2020;Wang et al, 2022;Kim et al, 2023;Bórawski et al, 2023; This Journal is licensed under a Creative Commons Attribution 4.0 International License Tarigan, 2023). Such analyses have reinforced the emphasis on a more sustainable energy matrix and have sparked increasing interest in the implementation of grid-tied solar photovoltaic AGPE for residential users in the country.…”

Desarrollo de un sistema de iluminación portátil alimentado por energía solar fotovoltaica: Caso de aplicación comunidad Chucheros-Buenaventura

“…In the case of Colombia, the available information sources about solar radiation indicate that the country has an average irradiance of 4,5 kWh/m 2 /d (9) , which exceeds the world average of 3,9 kWh/m 2 /d. According to the Colombian Mining and Energy Planning Unit's Solar Radiation Atlas (9) , particular regions of the country present irradiation levels above the national average, which allows considering the use of this energy source as an alternative for multiple applications of daily use (10,11) , including lighting not only for the rural areas but also for the urban context (12,13) . On the other hand, in Colombia approximately 1,250,000 tons of plastic are consumed annually (14) .…”