IDEAS home Printed from https://ideas.repec.org/a/eee/appene/v86y2009i7-8p985-999.html
   My bibliography  Save this article

Optimising the economic viability of grid-connected photovoltaic systems

Author

Listed:
  • Mondol, Jayanta Deb
  • Yohanis, Yigzaw G
  • Norton, Brian

Abstract

The impact of photovoltaic (PV) array size, orientation, inclination, load profile, electricity buying price, feed-in tariffs, PV/inverter sizing ratio ([`]sizing ratio') and PV/inverter cost ratio ([`]cost ratio') on the economic viability of a grid-connected PV system was investigated using a validated TRNSYS simulation model. The results showed that the fractional load met directly by a PV system depends on matching between PV supply and building load profile, sizing ratio and PV inclination. The profitability of a grid-connected PV system increases if the PV system is sized to reduce excess PV electrical energy fed to the grid when the feed-in tariff is lower than electricity buying price. The effect of feed-in tariffs on PV saving for selected European countries has been shown. The cost of the PV electricity depends on sizing ratio, PV and inverter lifetimes, cost ratio, PV inclination and financial parameters. The effect of cost ratio on the optimum PV/inverter sizing ratio is less significant when the cost ratio lies within 7-11. The minimum PV electricity cost at low and high insolation conditions were obtained for sizing ratios of 1.6 and 1.2, respectively. The lowest PV electricity cost was found for surface slopes within 30-40° for the selected European locations. The PV electricity cost for cost ratio of 5 and 13 varied from 0.44-0.85 [euro]kWh-1 to 0.38-0.76 [euro]kWh-1, respectively within high to low insolation conditions when the PV module unit cost, market discount rate, PV size, PV lifetime and inverter lifetime were assumed to be 6.5 [euro]Wp-1, 3%, 13 kWp, 20 years and 10 years, respectively.

Suggested Citation

  • Mondol, Jayanta Deb & Yohanis, Yigzaw G & Norton, Brian, 2009. "Optimising the economic viability of grid-connected photovoltaic systems," Applied Energy, Elsevier, vol. 86(7-8), pages 985-999, July.
    • Handle: RePEc:eee:appene:v:86:y:2009:i:7-8:p:985-999
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0306-2619(08)00249-3
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Albrecht, Johan, 2007. "The future role of photovoltaics: A learning curve versus portfolio perspective," Energy Policy, Elsevier, vol. 35(4), pages 2296-2304, April.
    2. Zahedi, A., 2006. "Solar photovoltaic (PV) energy; latest developments in the building integrated and hybrid PV systems," Renewable Energy, Elsevier, vol. 31(5), pages 711-718.
    3. Rowlands, Ian H., 2005. "Envisaging feed-in tariffs for solar photovoltaic electricity: European lessons for Canada," Renewable and Sustainable Energy Reviews, Elsevier, vol. 9(1), pages 51-68, February.
    4. Byrne, John & Letendre, Steven & Govindarajalu, Chandrasekhar & Wang, Young-Doo & Nigro, Ralph, 1996. "Evaluating the economics of photovoltaics in a demand-side management role," Energy Policy, Elsevier, vol. 24(2), pages 177-185, February.
    5. Hernández, J.C. & Vidal, P.G. & Almonacid, G., 1998. "Photovoltaic in grid-connected buildings, sizing and economic analysis," Renewable Energy, Elsevier, vol. 15(1), pages 562-565.
    6. Nofuentes, G. & Almonacid, G., 1998. "An approach to the selection of the inverter for architecturally integrated photovoltaic grid-connected systems," Renewable Energy, Elsevier, vol. 15(1), pages 487-490.
    Full references (including those not matched with items on IDEAS)

    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. Sampaio, Priscila Gonçalves Vasconcelos & González, Mario Orestes Aguirre, 2017. "Photovoltaic solar energy: Conceptual framework," Renewable and Sustainable Energy Reviews, Elsevier, vol. 74(C), pages 590-601.
    2. Martin, Nigel & Rice, John, 2013. "The solar photovoltaic feed-in tariff scheme in New South Wales, Australia," Energy Policy, Elsevier, vol. 61(C), pages 697-706.
    3. Ren, Hongbo & Gao, Weijun & Ruan, Yingjun, 2009. "Economic optimization and sensitivity analysis of photovoltaic system in residential buildings," Renewable Energy, Elsevier, vol. 34(3), pages 883-889.
    4. Lee, Jae Bum & Park, Jae Wan & Yoon, Jong Ho & Baek, Nam Choon & Kim, Dai Kon & Shin, U. Cheul, 2014. "An empirical study of performance characteristics of BIPV (Building Integrated Photovoltaic) system for the realization of zero energy building," Energy, Elsevier, vol. 66(C), pages 25-34.
    5. Perry, Simon & Klemeš, Jiří & Bulatov, Igor, 2008. "Integrating waste and renewable energy to reduce the carbon footprint of locally integrated energy sectors," Energy, Elsevier, vol. 33(10), pages 1489-1497.
    6. Sener, Can & Fthenakis, Vasilis, 2014. "Energy policy and financing options to achieve solar energy grid penetration targets: Accounting for external costs," Renewable and Sustainable Energy Reviews, Elsevier, vol. 32(C), pages 854-868.
    7. Iacobescu, Flavius & Badescu, Viorel, 2012. "The potential of the local administration as driving force for the implementation of the National PV systems Strategy in Romania," Renewable Energy, Elsevier, vol. 38(1), pages 117-125.
    8. Haghi, Ehsan & Raahemifar, Kaamran & Fowler, Michael, 2018. "Investigating the effect of renewable energy incentives and hydrogen storage on advantages of stakeholders in a microgrid," Energy Policy, Elsevier, vol. 113(C), pages 206-222.
    9. Wüstenhagen, Rolf & Menichetti, Emanuela, 2012. "Strategic choices for renewable energy investment: Conceptual framework and opportunities for further research," Energy Policy, Elsevier, vol. 40(C), pages 1-10.
    10. Kaplan, Abram W., 1999. "Generating interest, generating power: commercializing photovoltaics in the utility sector," Energy Policy, Elsevier, vol. 27(6), pages 317-329, June.
    11. Chiara Modanese & Hannu S. Laine & Toni P. Pasanen & Hele Savin & Joshua M. Pearce, 2018. "Economic Advantages of Dry-Etched Black Silicon in Passivated Emitter Rear Cell (PERC) Photovoltaic Manufacturing," Energies, MDPI, vol. 11(9), pages 1-18, September.
    12. Lewis, Joanna I. & Wiser, Ryan H., 2007. "Fostering a renewable energy technology industry: An international comparison of wind industry policy support mechanisms," Energy Policy, Elsevier, vol. 35(3), pages 1844-1857, March.
    13. Kaldellis, J.K. & Zafirakis, D. & Kondili, E., 2010. "Energy pay-back period analysis of stand-alone photovoltaic systems," Renewable Energy, Elsevier, vol. 35(7), pages 1444-1454.
    14. Heagle, A.L.B. & Naterer, G.F. & Pope, K., 2011. "Small wind turbine energy policies for residential and small business usage in Ontario, Canada," Energy Policy, Elsevier, vol. 39(4), pages 1988-1999, April.
    15. Notton, G. & Lazarov, V. & Stoyanov, L., 2010. "Optimal sizing of a grid-connected PV system for various PV module technologies and inclinations, inverter efficiency characteristics and locations," Renewable Energy, Elsevier, vol. 35(2), pages 541-554.
    16. DeBenedictis, A. & Hoff, T.E. & Price, S. & Woo, C.K., 2010. "Statistically adjusted engineering (SAE) modeling of metered roof-top photovoltaic (PV) output: California evidence," Energy, Elsevier, vol. 35(10), pages 4178-4183.
    17. Zhu, Y. & Li, Y.P. & Huang, G.H., 2012. "Planning municipal-scale energy systems under functional interval uncertainties," Renewable Energy, Elsevier, vol. 39(1), pages 71-84.
    18. Bougiatioti, Flora & Michael, Aimilios, 2015. "The architectural integration of active solar systems. Building applications in the Eastern Mediterranean region," Renewable and Sustainable Energy Reviews, Elsevier, vol. 47(C), pages 966-982.
    19. Mirzahosseini, Alireza Hajiseyed & Taheri, Taraneh, 2012. "Environmental, technical and financial feasibility study of solar power plants by RETScreen, according to the targeting of energy subsidies in Iran," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(5), pages 2806-2811.
    20. del Río, Pablo & Linares, Pedro, 2014. "Back to the future? Rethinking auctions for renewable electricity support," Renewable and Sustainable Energy Reviews, Elsevier, vol. 35(C), pages 42-56.

    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:eee:appene:v:86:y:2009:i:7-8:p:985-999. 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/405891/description#description .

    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.