IDEAS home Printed from https://ideas.repec.org/a/eee/energy/v165y2018ipap853-866.html
   My bibliography  Save this article

Economic analysis of support policies for residential photovoltaic systems in Iran

Author

Listed:
  • Sheikhhoseini, Mousa
  • Rashidinejad, Masoud
  • Ameri, Mehran
  • Abdollahi, Amir

Abstract

This paper aims to develop a novel efficient Feed-In-Tariff (FIT) supportive scheme for diffusing photovoltaic systems in the residential sectors in the presence of multifarious smart net metering mechanisms. In doing so, a comprehensive economic analysis is performed to explore the optimal regional FIT for spreading PV systems and preventing overpayment/underpayment of flat national FIT. In addition, a new scheme of incentives in each region is established to change electricity use from their current consumption patterns in response to changes in the PV generation and the price of electricity. The participation of PV systems during peak demand associated with different potentials of PV self-consumption is the linchpin of the proposed methodology. The proposed model is then applied to investigate the techno-economic analysis in sixteen geographic areas in Iran. Such analysis introduces the most appropriate regions for investment and provides regional FIT. These results also show that at the current FIT as well as retail rate, the combination of FIT incorporating net metering is not beneficial. It can be concluded that by increasing the electricity price, the so-called retail rate or FIT, there is a point at which the PV systems investment will be cost-effective considerably.

Suggested Citation

  • Sheikhhoseini, Mousa & Rashidinejad, Masoud & Ameri, Mehran & Abdollahi, Amir, 2018. "Economic analysis of support policies for residential photovoltaic systems in Iran," Energy, Elsevier, vol. 165(PA), pages 853-866.
    • Handle: RePEc:eee:energy:v:165:y:2018:i:pa:p:853-866
    DOI: 10.1016/j.energy.2018.08.217
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0360544218317535
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.energy.2018.08.217?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    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. Di Silvestre, M.L. & La Cascia, D. & Riva Sanseverino, E. & Zizzo, G., 2016. "Improving the energy efficiency of an islanded distribution network using classical and innovative computation methods," Utilities Policy, Elsevier, vol. 40(C), pages 58-66.
    2. Edalati, Saeed & Ameri, Mehran & Iranmanesh, Masoud & Tarmahi, Hakimeh & Gholampour, Maysam, 2016. "Technical and economic assessments of grid-connected photovoltaic power plants: Iran case study," Energy, Elsevier, vol. 114(C), pages 923-934.
    3. Aquila, Giancarlo & Pamplona, Edson de Oliveira & Queiroz, Anderson Rodrigo de & Rotela Junior, Paulo & Fonseca, Marcelo Nunes, 2017. "An overview of incentive policies for the expansion of renewable energy generation in electricity power systems and the Brazilian experience," Renewable and Sustainable Energy Reviews, Elsevier, vol. 70(C), pages 1090-1098.
    4. Pere Mir-Artigues & Pablo del Río, 2014. "Combining tariffs, investment subsidies and soft loans in a renewable electricity deployment policy," Working Papers 2014/23, Institut d'Economia de Barcelona (IEB).
    5. Darghouth, Naïm R. & Barbose, Galen & Wiser, Ryan H., 2014. "Customer-economics of residential photovoltaic systems (Part 1): The impact of high renewable energy penetrations on electricity bill savings with net metering," Energy Policy, Elsevier, vol. 67(C), pages 290-300.
    6. Lang, Tillmann & Gloerfeld, Erik & Girod, Bastien, 2015. "Don׳t just follow the sun – A global assessment of economic performance for residential building photovoltaics," Renewable and Sustainable Energy Reviews, Elsevier, vol. 42(C), pages 932-951.
    7. Pere Mir-Artigues & Pablo del Río, 2014. "Combining tariffs, investment subsidies and soft loans in a renewable electricity deployment policy," Working Papers 2014/23, Institut d'Economia de Barcelona (IEB).
    8. Goop, Joel & Odenberger, Mikael & Johnsson, Filip, 2016. "Distributed solar and wind power – Impact on distribution losses," Energy, Elsevier, vol. 112(C), pages 273-284.
    9. Mir-Artigues, Pere & del Río, Pablo, 2014. "Combining tariffs, investment subsidies and soft loans in a renewable electricity deployment policy," Energy Policy, Elsevier, vol. 69(C), pages 430-442.
    10. Ramírez, F. Javier & Honrubia-Escribano, A. & Gómez-Lázaro, E. & Pham, Duc T., 2017. "Combining feed-in tariffs and net-metering schemes to balance development in adoption of photovoltaic energy: Comparative economic assessment and policy implications for European countries," Energy Policy, Elsevier, vol. 102(C), pages 440-452.
    11. De Boeck, L. & Van Asch, S. & De Bruecker, P. & Audenaert, A., 2016. "Comparison of support policies for residential photovoltaic systems in the major EU markets through investment profitability," Renewable Energy, Elsevier, vol. 87(P1), pages 42-53.
    12. Ciarreta, Aitor & Espinosa, Maria Paz & Pizarro-Irizar, Cristina, 2017. "Optimal regulation of renewable energy: A comparison of Feed-in Tariffs and Tradable Green Certificates in the Spanish electricity system," Energy Economics, Elsevier, vol. 67(C), pages 387-399.
    13. Darghouth, Naïm R. & Barbose, Galen & Wiser, Ryan, 2011. "The impact of rate design and net metering on the bill savings from distributed PV for residential customers in California," Energy Policy, Elsevier, vol. 39(9), pages 5243-5253, September.
    14. Pyrgou, Andri & Kylili, Angeliki & Fokaides, Paris A., 2016. "The future of the Feed-in Tariff (FiT) scheme in Europe: The case of photovoltaics," Energy Policy, Elsevier, vol. 95(C), pages 94-102.
    15. Orioli, Aldo & Di Gangi, Alessandra, 2015. "The recent change in the Italian policies for photovoltaics: Effects on the payback period and levelized cost of electricity of grid-connected photovoltaic systems installed in urban contexts," Energy, Elsevier, vol. 93(P2), pages 1989-2005.
    16. Nalan, Çiçek Bezir & Murat, Öztürk & Nuri, Özek, 2009. "Renewable energy market conditions and barriers in Turkey," Renewable and Sustainable Energy Reviews, Elsevier, vol. 13(6-7), pages 1428-1436, August.
    17. Huber, Claus & Ryan, Lisa & O Gallachoir, Brian & Resch, Gustav & Polaski, Katrina & Bazilian, Morgan, 2007. "Economic modelling of price support mechanisms for renewable energy: Case study on Ireland," Energy Policy, Elsevier, vol. 35(2), pages 1172-1185, February.
    18. Watts, David & Valdés, Marcelo F. & Jara, Danilo & Watson, Andrea, 2015. "Potential residential PV development in Chile: The effect of Net Metering and Net Billing schemes for grid-connected PV systems," Renewable and Sustainable Energy Reviews, Elsevier, vol. 41(C), pages 1037-1051.
    19. Muhammad-Sukki, Firdaus & Abu-Bakar, Siti Hawa & Munir, Abu Bakar & Mohd Yasin, Siti Hajar & Ramirez-Iniguez, Roberto & McMeekin, Scott G. & Stewart, Brian G. & Sarmah, Nabin & Mallick, Tapas Kumar & , 2014. "Feed-in tariff for solar photovoltaic: The rise of Japan," Renewable Energy, Elsevier, vol. 68(C), pages 636-643.
    20. Yousefi, G.Reza & Kaviri, Sajjad Makhdoomi & Latify, Mohammad Amin & Rahmati, Iman, 2017. "Electricity industry restructuring in Iran," Energy Policy, Elsevier, vol. 108(C), pages 212-226.
    21. Schallenberg-Rodriguez, Julieta, 2017. "Renewable electricity support systems: Are feed-in systems taking the lead?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 76(C), pages 1422-1439.
    22. Edalati, Saeed & Ameri, Mehran & Iranmanesh, Masoud & Sadeghi, Zeinolabedin, 2017. "Solar photovoltaic power plants in five top oil-producing countries in Middle East: A case study in Iran," Renewable and Sustainable Energy Reviews, Elsevier, vol. 69(C), pages 1271-1280.
    23. Lau, K.Y. & Muhamad, N.A. & Arief, Y.Z. & Tan, C.W. & Yatim, A.H.M., 2016. "Grid-connected photovoltaic systems for Malaysian residential sector: Effects of component costs, feed-in tariffs, and carbon taxes," Energy, Elsevier, vol. 102(C), pages 65-82.
    24. Sadeghi, Hadi & Abdollahi, Amir & Rashidinejad, Masoud, 2015. "Evaluating the impact of FIT financial burden on social welfare in renewable expansion planning," Renewable Energy, Elsevier, vol. 75(C), pages 199-209.
    25. Comello, Stephen & Reichelstein, Stefan, 2017. "Cost competitiveness of residential solar PV: The impact of net metering restrictions," Renewable and Sustainable Energy Reviews, Elsevier, vol. 75(C), pages 46-57.
    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. Sabina Scarpellini & José Ángel Gimeno & Pilar Portillo-Tarragona & Eva Llera-Sastresa, 2021. "Financial Resources for the Investments in Renewable Self-Consumption in a Circular Economy Framework," Sustainability, MDPI, vol. 13(12), pages 1-17, June.
    2. Barzegar, Mohammadreza & Rashidinejad, Masoud & Abdollahi, Amir & Afzali, Peyman & Bakhshai, Alireza, 2020. "An efficient reliability index for the assessment of energy efficiency considering sitting of green virtual resources in a microgrid," Energy, Elsevier, vol. 191(C).
    3. Jiehui Yuan & Wenli Yuan & Juan Yuan & Zhihong Liu & Jia Liao & Xunmin Ou, 2023. "Policy Recommendations for Distributed Solar PV Aiming for a Carbon-Neutral Future," Sustainability, MDPI, vol. 15(4), pages 1-16, February.

    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. de Oliveira, Lucas Guedes & Aquila, Giancarlo & Balestrassi, Pedro Paulo & de Paiva, Anderson Paulo & de Queiroz, Anderson Rodrigo & de Oliveira Pamplona, Edson & Camatta, Ulisses Pessin, 2020. "Evaluating economic feasibility and maximization of social welfare of photovoltaic projects developed for the Brazilian northeastern coast: An attribute agreement analysis," Renewable and Sustainable Energy Reviews, Elsevier, vol. 123(C).
    2. Coria, Gustavo & Penizzotto, Franco & Pringles, Rolando, 2019. "Economic analysis of photovoltaic projects: The Argentinian renewable generation policy for residential sectors," Renewable Energy, Elsevier, vol. 133(C), pages 1167-1177.
    3. López Prol, Javier, 2018. "Regulation, profitability and diffusion of photovoltaic grid-connected systems: A comparative analysis of Germany and Spain," Renewable and Sustainable Energy Reviews, Elsevier, vol. 91(C), pages 1170-1181.
    4. Castaneda, Monica & Jimenez, Maritza & Zapata, Sebastian & Franco, Carlos J. & Dyner, Isaac, 2017. "Myths and facts of the utility death spiral," Energy Policy, Elsevier, vol. 110(C), pages 105-116.
    5. Tantisattayakul, Thanapol & Kanchanapiya, Premrudee, 2017. "Financial measures for promoting residential rooftop photovoltaics under a feed-in tariff framework in Thailand," Energy Policy, Elsevier, vol. 109(C), pages 260-269.
    6. Aquila, Giancarlo & Pamplona, Edson de Oliveira & Queiroz, Anderson Rodrigo de & Rotela Junior, Paulo & Fonseca, Marcelo Nunes, 2017. "An overview of incentive policies for the expansion of renewable energy generation in electricity power systems and the Brazilian experience," Renewable and Sustainable Energy Reviews, Elsevier, vol. 70(C), pages 1090-1098.
    7. Sabina Scarpellini & José Ángel Gimeno & Pilar Portillo-Tarragona & Eva Llera-Sastresa, 2021. "Financial Resources for the Investments in Renewable Self-Consumption in a Circular Economy Framework," Sustainability, MDPI, vol. 13(12), pages 1-17, June.
    8. Gottschamer, L. & Zhang, Q., 2016. "Interactions of factors impacting implementation and sustainability of renewable energy sourced electricity," Renewable and Sustainable Energy Reviews, Elsevier, vol. 65(C), pages 164-174.
    9. Rômulo de Oliveira Azevêdo & Paulo Rotela Junior & Luiz Célio Souza Rocha & Gianfranco Chicco & Giancarlo Aquila & Rogério Santana Peruchi, 2020. "Identification and Analysis of Impact Factors on the Economic Feasibility of Photovoltaic Energy Investments," Sustainability, MDPI, vol. 12(17), pages 1-40, September.
    10. 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.
    11. Pei-Hsuan Tsai & Chih-Jou Chen & Ho-Chin Yang, 2021. "Using Porter’s Diamond Model to Assess the Competitiveness of Taiwan’s Solar Photovoltaic Industry," SAGE Open, , vol. 11(1), pages 21582440209, January.
    12. Espinoza, R. & Muñoz-Cerón, E. & Aguilera, J. & de la Casa, J., 2019. "Feasibility evaluation of residential photovoltaic self-consumption projects in Peru," Renewable Energy, Elsevier, vol. 136(C), pages 414-427.
    13. Georgios C. Christoforidis & Ioannis P. Panapakidis & Theofilos A. Papadopoulos & Grigoris K. Papagiannis & Ioannis Koumparou & Maria Hadjipanayi & George E. Georghiou, 2016. "A Model for the Assessment of Different Net-Metering Policies," Energies, MDPI, vol. 9(4), pages 1-24, April.
    14. Xin-gang Zhao & Yu-zhuo Zhang & Yan-bin Li, 2018. "The Evolution of Renewable Energy Price Policies Based on Improved Bass Model: A System Dynamics (SD) Analysis," Sustainability, MDPI, vol. 10(6), pages 1-20, May.
    15. Bean, Patrick & Blazquez, Jorge & Nezamuddin, Nora, 2017. "Assessing the cost of renewable energy policy options – A Spanish wind case study," Renewable Energy, Elsevier, vol. 103(C), pages 180-186.
    16. Marc Baudry & Clément Bonnet, 2019. "Demand-Pull Instruments and the Development of Wind Power in Europe: A Counterfactual Analysis," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 73(2), pages 385-429, June.
    17. Ossenbrink, Jan, 2017. "How feed-in remuneration design shapes residential PV prosumer paradigms," Energy Policy, Elsevier, vol. 108(C), pages 239-255.
    18. Thapar, Sapan & Sharma, Seema & Verma, Ashu, 2016. "Economic and environmental effectiveness of renewable energy policy instruments: Best practices from India," Renewable and Sustainable Energy Reviews, Elsevier, vol. 66(C), pages 487-498.
    19. Ramírez, F. Javier & Honrubia-Escribano, A. & Gómez-Lázaro, E. & Pham, Duc T., 2017. "Combining feed-in tariffs and net-metering schemes to balance development in adoption of photovoltaic energy: Comparative economic assessment and policy implications for European countries," Energy Policy, Elsevier, vol. 102(C), pages 440-452.
    20. López Prol, Javier & Steininger, Karl W., 2017. "Photovoltaic self-consumption regulation in Spain: Profitability analysis and alternative regulation schemes," Energy Policy, Elsevier, vol. 108(C), pages 742-754.

    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:energy:v:165:y:2018:i:pa:p:853-866. 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.journals.elsevier.com/energy .

    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.