IDEAS home Printed from https://ideas.repec.org/a/eco/journ2/2023-03-3.html
   My bibliography  Save this article

Financial Analysis of Solar Rooftop PV System: Case Study in Indonesia

Author

Listed:
  • Elieser Tarigan

    (Department of Electrical Engineering, Center for Environment and Renewable Energy Studies (PuSLET), University of Surabaya, Indonesia.)

Abstract

The primary barrier to the dissemination of photovoltaic (PV) technology is its high cost as compared to other alternative options. This paper discusses some financial aspects of rooftop PV systems: module cost, BOS cost, useful lifetime, minimum attractive rate of return, and O&M cost. An equation and numerical calculation were made for estimating the unit cost of electricity of a rooftop system. The numerical calculation and simulation were made by taking the condition of Indonesia as the case study. It was assumed that (i) the useful lifetime of the PV system is 20 years, (ii) the annual maintenance cost is two percent of the total capital cost of the system, (iii) taxes and insurance costs are not to be paid, and (iv) capacity utilization is 20 percent. It is found that rooftop PV systems have the potential to provide power at competitive prices for residential with other alternative options for power generation.

Suggested Citation

  • Elieser Tarigan, 2023. "Financial Analysis of Solar Rooftop PV System: Case Study in Indonesia," International Journal of Energy Economics and Policy, Econjournals, vol. 13(3), pages 15-19, May.
    • Handle: RePEc:eco:journ2:2023-03-3
    as

    Download full text from publisher

    File URL: https://www.econjournals.com/index.php/ijeep/article/download/14214/7276
    Download Restriction: no
    File URL: https://www.econjournals.com/index.php/ijeep/article/view/14214
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Muhammad Yasir Ali Khan & Haoming Liu & Zhihao Yang & Xiaoling Yuan, 2020. "A Comprehensive Review on Grid Connected Photovoltaic Inverters, Their Modulation Techniques, and Control Strategies," Energies, MDPI, vol. 13(16), pages 1-40, August.
    2. Khezri, Rahmat & Mahmoudi, Amin & Aki, Hirohisa, 2022. "Optimal planning of solar photovoltaic and battery storage systems for grid-connected residential sector: Review, challenges and new perspectives," Renewable and Sustainable Energy Reviews, Elsevier, vol. 153(C).
    3. Maulidia, Martha & Dargusch, Paul & Ashworth, Peta & Ardiansyah, Fitrian, 2019. "Rethinking renewable energy targets and electricity sector reform in Indonesia: A private sector perspective," Renewable and Sustainable Energy Reviews, Elsevier, vol. 101(C), pages 231-247.
    4. Elieser Tarigan, 2020. "Rooftop PV System Policy and Implementation Study for a Household in Indonesia," International Journal of Energy Economics and Policy, Econjournals, vol. 10(5), pages 110-115.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jakub Stolarski & Ewelina Olba-Zięty & Mariusz Jerzy Stolarski, 2024. "Economic Analysis of Renewable Energy Generation from a Multi-Energy Installation in a Single-Family House," Energies, MDPI, vol. 17(24), pages 1-21, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kim, Sunwoo & Choi, Yechan & Park, Joungho & Adams, Derrick & Heo, Seongmin & Lee, Jay H., 2024. "Multi-period, multi-timescale stochastic optimization model for simultaneous capacity investment and energy management decisions for hybrid Micro-Grids with green hydrogen production under uncertainty," Renewable and Sustainable Energy Reviews, Elsevier, vol. 190(PA).
    2. Haoming Liu & Muhammad Yasir Ali Khan & Xiaoling Yuan, 2023. "Hybrid Maximum Power Extraction Methods for Photovoltaic Systems: A Comprehensive Review," Energies, MDPI, vol. 16(15), pages 1-64, July.
    3. Alizadeh, Reza & Gharizadeh Beiragh, Ramin & Soltanisehat, Leili & Soltanzadeh, Elham & Lund, Peter D., 2020. "Performance evaluation of complex electricity generation systems: A dynamic network-based data envelopment analysis approach," Energy Economics, Elsevier, vol. 91(C).
    4. D'Adamo, Idiano & Gastaldi, Massimo & Morone, Piergiuseppe & Ozturk, Ilhan, 2022. "Economics and policy implications of residential photovoltaic systems in Italy's developed market," Utilities Policy, Elsevier, vol. 79(C).
    5. Chaisri Tarasawatpipat & Witthaya Mekhum, 2021. "Rethinking the Reasons of Greenhouse Gases Emission in ASEAN Countries: Finding Reasons in Urbanization, Industrialization and Population Growth," International Journal of Energy Economics and Policy, Econjournals, vol. 11(1), pages 544-550.
    6. Alexander Micallef & Cyril Spiteri Staines & Alan Cassar, 2022. "Utility-Scale Storage Integration in the Maltese Medium-Voltage Distribution Network," Energies, MDPI, vol. 15(8), pages 1-20, April.
    7. Yap, Kah Yung & Chin, Hon Huin & Klemeš, Jiří Jaromír, 2022. "Solar Energy-Powered Battery Electric Vehicle charging stations: Current development and future prospect review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 169(C).
    8. Nicola Blasuttigh & Simone Negri & Alessandro Massi Pavan & Enrico Tironi, 2023. "Optimal Sizing and Environ-Economic Analysis of PV-BESS Systems for Jointly Acting Renewable Self-Consumers," Energies, MDPI, vol. 16(3), pages 1-25, January.
    9. Erwan Hermawan & Usman Sudjadi, 2022. "Integrated Nuclear-Renewable Energy System for Industrialization in West Nusa Tenggara Province, Indonesia: Economic, Potential Site, and Policy Recommendation," International Journal of Energy Economics and Policy, Econjournals, vol. 12(4), pages 146-159, July.
    10. Olexandr Shavolkin & Iryna Shvedchykova & Juraj Gerlici & Kateryna Kravchenko & František Pribilinec, 2022. "Use of Hybrid Photovoltaic Systems with a Storage Battery for the Remote Objects of Railway Transport Infrastructure," Energies, MDPI, vol. 15(13), pages 1-19, July.
    11. Tito G. Amaral & Vitor Fernão Pires & Armando Cordeiro & Daniel Foito & João F. Martins & Julia Yamnenko & Tetyana Tereschenko & Liudmyla Laikova & Ihor Fedin, 2023. "Incipient Fault Diagnosis of a Grid-Connected T-Type Multilevel Inverter Using Multilayer Perceptron and Walsh Transform," Energies, MDPI, vol. 16(6), pages 1-18, March.
    12. Yash Chawla & Anna Kowalska-Pyzalska & Widayat Widayat, 2019. "Consumer Willingness and Acceptance of Smart Meters in Indonesia," Resources, MDPI, vol. 8(4), pages 1-23, November.
    13. Mehmet Balcilar & Gizem Uzuner & Chinazaekpere Nwani & Festus Victor Bekun, 2023. "Boosting Energy Efficiency in Turkey: The Role of Public–Private Partnership Investment," Sustainability, MDPI, vol. 15(3), pages 1-16, January.
    14. Lakshmi Syamala & Deepa Sankar & Suhara Ekkarakkudy Makkar & Bos Mathew Jos & Mathew Kallarackal, 2022. "Hysteresis Based Quasi Fixed Frequency Current Control of Single Phase Full Bridge Grid Integrated Voltage Source Inverter," Energies, MDPI, vol. 15(21), pages 1-17, October.
    15. Muhammad Yasir Ali Khan & Haoming Liu & Salman Habib & Danish Khan & Xiaoling Yuan, 2022. "Design and Performance Evaluation of a Step-Up DC–DC Converter with Dual Loop Controllers for Two Stages Grid Connected PV Inverter," Sustainability, MDPI, vol. 14(2), pages 1-22, January.
    16. Guilherme V. Hollweg & Shahid A. Khan & Shivam Chaturvedi & Yaoyu Fan & Mengqi Wang & Wencong Su, 2023. "Grid-Connected Converters: A Brief Survey of Topologies, Output Filters, Current Control, and Weak Grids Operation," Energies, MDPI, vol. 16(9), pages 1-31, April.
    17. Yani Fristikawati, 2022. "Legal analysis regarding nuclear power plant and its relation to the protection of environment and society," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 11(1), pages 290-297, January.
    18. León, L.M. & Romero-Quete, D. & Merchán, N. & Cortés, C.A., 2023. "Optimal design of PV and hybrid storage based microgrids for healthcare and government facilities connected to highly intermittent utility grids," Applied Energy, Elsevier, vol. 335(C).
    19. Elieser Tarigan, 2024. "Techno-Economic Analysis of Residential Grid-Connected Rooftop Solar PV Systems in Indonesia Under MEMR 26/2021 Regulation," International Journal of Energy Economics and Policy, Econjournals, vol. 14(1), pages 412-417, January.
    20. Liu, Junling & Li, Mengyue & Xue, Liya & Kobashi, Takuro, 2022. "A framework to evaluate the energy-environment-economic impacts of developing rooftop photovoltaics integrated with electric vehicles at city level," Renewable Energy, Elsevier, vol. 200(C), pages 647-657.

    More about this item

    Keywords

    PV system; financial; rooftop; electricity; unit cost;
    All these keywords.

    JEL classification:

    • C58 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Financial Econometrics
    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
    • Z18 - Other Special Topics - - Cultural Economics - - - Public Policy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eco:journ2:2023-03-3. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ilhan Ozturk (email available below). General contact details of provider: http://www.econjournals.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.