Industrial Photovoltaic Systems: An Economic Analysis in Non-Subsidized Electricity Markets

Cucchiella, Federica; D’Adamo, Idiano; Rosa, Paolo

doi:10.3390/en81112350

Cited by 12 publications

(9 citation statements)

References 48 publications

(54 reference statements)

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“…Consequently, they are costs with negative value and so can be interpreted as revenues in according to approach used by [18,30]. In this paper the purchase price of electricity (that will be evaluated as savings using the PV system) is calculated using market data and the sale of energy is evaluated by increasing the energy price produced and sold to the grid of a certain delta in accordance with a previous paper [31]. Investment costs are the main item of cash outflows, but are characterized by a great reduction in the last years (was equal to 4500 €/kW in residential sector in 2010) [12].…”

Section: Methodsmentioning

confidence: 99%

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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%

“…Hence, variance of the expected NPV could occur. This limitation can be overcome by implementing a sensitivity analysis on the critical variables [31,38]. The new electricity tariff will produce changes on two critical variables examined in previous works [12,18].…”

Section: Sensitivity Analysismentioning

confidence: 99%

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

2017

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“…In this situation, economic methodologies able to evaluate the photovoltaic systems are represented by the Net Present Value, the Internal Rate of Return and the Discounted Payback Time. These financial indicators are based on the annual cash flow obtained from the differences between the annual revenue and costs generated during the lifetime of the investment [17,18].…”

Section: Literature Reviewmentioning

confidence: 99%

Economic Valuation of Ground Mounted Photovoltaic Systems

et al. 2017

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Abstract:The appraisal of ground mounted photovoltaic systems is an important question, due to increasing investments in renewable energies. The costs related to installation and maintenance, and the economic benefits related to the energy saving, suggests the use of an income approach, in order to consider the financial aspects of the photovoltaic systems. This paper proposes the use of the Discounted Cash Flow Analysis (DCFA). The DCFA allows to simulate the entire life cycle of the photovoltaic system, from the acquisition date to the end of its life cycle, to evaluate the most probable market value by discounting the annual cash flows generated by the system. In particular, the paper proposes a procedure to determine the discount rate in an innovative manner through the combination of a conventional financial method (the Build up Approach) and the analytical method which makes recourse to the use of the ascending and descending influences that act, each with positive or negative sign, on the specific risk factors related to the photovoltaic investment. To obtain an objective appraisal of the discount rate, the theory of the ascending and descending influences has been applied in this specific case for the calculation of the risk premium. The percentage incidences of the ascending and descending influences, which influence the formation of the risks to which they refer, are determined through this study for all the intrinsic factors, which are part of the photovoltaic investment risks.

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“…NPV and DPBT are two financial indicators typically used. The first one is defined as the sum of present values of individual cash flows, and the second one represents the number of years needed to balance cumulative discounted cash flows and the initial investment [23,24].…”

Section: Methodsmentioning

confidence: 99%

Economic Feasibility for Recycling of Waste Crystalline Silicon Photovoltaic Modules

D’Adamo

Miliacca

Rosa

2017

International Journal of Photoenergy

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Cumulative photovoltaic (PV) power installed in 2016 was equal to 305 GW. Five countries (China, Japan, Germany, the USA, and Italy) shared about 70% of the global power. End-of-life (EoL) management of waste PV modules requires alternative strategies than landfill, and recycling is a valid option. Technological solutions are already available in the market and environmental benefits are highlighted by the literature, while economic advantages are not well defined. The aim of this paper is investigating the financial feasibility of crystalline silicon (Si) PV module-recycling processes. Two well-known indicators are proposed for a reference 2000 tons plant: net present value (NPV) and discounted payback period (DPBT). NPV/size is equal to −0.84 €/kg in a baseline scenario. Furthermore, a sensitivity analysis is conducted, in order to improve the solidity of the obtained results. NPV/size varies from −1.19 €/kg to −0.50 €/kg. The absence of valuable materials plays a key role, and process costs are the main critical variables.

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Industrial Photovoltaic Systems: An Economic Analysis in Non-Subsidized Electricity Markets

Cited by 12 publications

References 48 publications

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

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

Economic Valuation of Ground Mounted Photovoltaic Systems

Economic Feasibility for Recycling of Waste Crystalline Silicon Photovoltaic Modules

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