The Effect of Retail Electricity Price Levels on the FI Values of Smart-Grid Rooftop Solar Power Systems: A Case Study in the Central Highlands of Vietnam

Abstract

Smart-grid rooftop solar electricity (SG rooftop PV) is an alternative sustainable energy resource. This research was conducted in the Central Highlands of Vietnam (CHV) in light of the different levels of retail electricity pricing, the sunshine duration, and the implementation of a feed-in-tariff system, in order to calculate the financial indicators (FIs) of SG rooftop PV, which would supply investors, companies supplying SG rooftop PV, and policymakers with useful information. The FI values were calculated based on the net present value, the payback period, and the internal return rate. The results show that the electricity retail price level affects the FI of SG rooftop PV. SG rooftop PV is installed to satisfy higher electricity consumption levels, which attracts a higher retail electricity price. As a result of the greater benefits, especially if SG rooftop PV is installed and the highest level of electricity (exceeds 400 kWh) is used to satisfy domestic consumption, users will recoup their investment in only four years and after that will enjoy free electricity. All the FI values derived from this research show that people in the CHV can derive benefits from installing SG rooftop PV.

Advancing Households’ Sustainable Energy through Gender Attitudes towards Rooftop PV Installations: A Case of the Central Highlands, Vietnam

“…People in the Central Highlands of Vietnam can use free electricity 4 to 11 years after the installation of Rooftop PV, depending on their level of electricity consumption. The higher the level of electricity consumed, the shorter the payback period after they install rooftop PV for their electricity consumption [15]. However, the number of households that installed rooftop PV in the research area was small.…”

“…In particular, the rooftop solar electricity system (rooftop PV) has many strong points, such as taking advantage of the gaps in roofs, not occupying productive land as a solar farm does, providing a large portion of electricity for on-site enjoyment, reducing pressure on the grid, and not having to replace the battery every 2 to 5 years [14]. People who install this system can sell excess electricity to Vietnam Electricity (EVN) and can use free electricity only four years after installation, depending on their level of electricity consumption [15]. Because of these benefits, the Vietnamese government encourages solar energy development with the highest feed-in tariff (FIT) prices of all solar energy types, as well as the other types of energy [16].…”

“…The quoted cost of an SG rooftop PV installation in Vietnam ranged between USD 850 and over 1200 per kWp and the cost of USD 1200 per kWp was adopted in order that households can choose high-quality equipment. The payment for that system ranges from USD 360 to USD 3960 due to the households' level of electricity consumption [15]. The initial cost for SG rooftop solar is quite high.…”

Global Challenges and Prospects of Photovoltaic Materials Disposal and Recycling: A Comprehensive Review

“…The financial methodologies that are usually used to assess the profitability of investments are the Net Present Value (NPV) and Discounted Payback Period (DPBP). The profitability is ensured when the NPV is positive and the DPBP is as short as possible [87]. Unfortunately, a few financial analyses carried out on a PV recycling plant showed non-profitability [83,88], with negative NPVs and DPBP of more than the assumed duration of the plant's useful life.…”

The Motivation for Incorporation of Microgrid Technology in Rooftop Solar Photovoltaic Deployment to Enhance Energy Economics

“…Similarly, in the literature [47], an extensive performance and economic evaluation of solar rooftop PV systems have been carried out for different regions in Thailand. Further improving the solar capacity improves the nation's energy economics [48][49][50]. The statistics of average solar capacity and its energy cost of the countries that are leading solar power producers are depicted in Figure 1.…”