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An Assessment of the Economic Viability of Delivering Solar PV Rooftop as a Service to Strengthen Business Investment in the Residential and Commercial Sectors

Author

Listed:
  • Chavid Leewiraphan

    (School of Renewable Energy and Smart Grid Technology (SGtech), Naresuan University, Phitsanulok 65000, Thailand)

  • Nipon Ketjoy

    (School of Renewable Energy and Smart Grid Technology (SGtech), Naresuan University, Phitsanulok 65000, Thailand)

  • Prapita Thanarak

    (School of Renewable Energy and Smart Grid Technology (SGtech), Naresuan University, Phitsanulok 65000, Thailand)

Abstract

The creation of significant power from PV technology has resulted from the growth of the solar PV business and industry and the lowering of PV costs. The electricity market is open broader for PV and other involved device technology. The goal of cumulative capacity drives Thailand's solar PV investment compass. The learning curve projection shows that the prediction's learning curve reliability can provide a clearer view for PV investment and policymakers. This paper shows the creation of the opportunity for the solar PV rooftop as a service (RaaS) business model, designed for four customers: residential and commercial, with small, medium, and large scales depending on their electricity consumption. The result reveals that if no grid is allowed, the medium- and large-scale are more likely to be feasible as they show grid parity. With the PV cost reduction trend, all the customers are economically viable in the grid sale allowed. Besides that, the electricity tariff rate from the grid also significantly impacts the PV rooftop investment and customer decision-making.

Suggested Citation

  • Chavid Leewiraphan & Nipon Ketjoy & Prapita Thanarak, 2024. "An Assessment of the Economic Viability of Delivering Solar PV Rooftop as a Service to Strengthen Business Investment in the Residential and Commercial Sectors," International Journal of Energy Economics and Policy, Econjournals, vol. 14(2), pages 226-233, March.
    • Handle: RePEc:eco:journ2:2024-02-22
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    References listed on IDEAS

    as
    1. Lang, Tillmann & Ammann, David & Girod, Bastien, 2016. "Profitability in absence of subsidies: A techno-economic analysis of rooftop photovoltaic self-consumption in residential and commercial buildings," Renewable Energy, Elsevier, vol. 87(P1), pages 77-87.
    2. Suntiti Yoomak & Theerasak Patcharoen & Atthapol Ngaopitakkul, 2019. "Performance and Economic Evaluation of Solar Rooftop Systems in Different Regions of Thailand," Sustainability, MDPI, vol. 11(23), pages 1-20, November.
    3. Tongsopit, Sopitsuda & Moungchareon, Sunee & Aksornkij, Apinya & Potisat, Tanai, 2016. "Business models and financing options for a rapid scale-up of rooftop solar power systems in Thailand," Energy Policy, Elsevier, vol. 95(C), pages 447-457.
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    More about this item

    Keywords

    Solar Rooftop; Energy-as-a-service; Electricity Sector; Economic Analysis; Energy Service Company;
    All these keywords.

    JEL classification:

    • C8 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs
    • G0 - Financial Economics - - General
    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy

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