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The economic performance of industrial and commercial rooftop photovoltaic in China

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  • Xin-gang, Zhao
  • Yi-min, Xie

Abstract

Due to its characteristics of nearby power generation, grid-connection, conversion and use, rooftop photovoltaic power generation has formed the advantages of less investment, flexible, efficient and environmental protection, with broad prospects for development. Therefore, studying its economic performance is of great significance to investment decision and policy improvement. Under the current technical cost and policy conditions of rooftop photovoltaic in China, this paper constructs a cost-benefit analysis model considering the impact of inflation on cash flow. The results show that: For small rooftop photovoltaic in China, first of all, under the existing subsidy price and cost, its investment payback period is short and the risk is low. Secondly, the average internal rate of return is more than 10%, and the levelized cost of electricity is 0.2727–0.5573CNY/kWh, so the economic performance is good. Then, although the subsidy price has been lowered twice in a row in 2018, its economic performance is still relatively good. Finally, in the economic performance analysis of rooftop photovoltaic, besides the influence of power generation capacity, loan interest rate, construction cost and other factors, the time value of capital and inflation are also factors that cannot be ignored.

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  • Xin-gang, Zhao & Yi-min, Xie, 2019. "The economic performance of industrial and commercial rooftop photovoltaic in China," Energy, Elsevier, vol. 187(C).
    • Handle: RePEc:eee:energy:v:187:y:2019:i:c:s0360544219316512
    DOI: 10.1016/j.energy.2019.115961
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    4. Dirk Johan van Vuuren & Annlizé L. Marnewick & Jan Harm C. Pretorius, 2021. "A Financial Evaluation of a Multiple Inclination, Rooftop-Mounted, Photovoltaic System Where Structured Tariffs Apply: A Case Study of a South African Shopping Centre," Energies, MDPI, vol. 14(6), pages 1-26, March.
    5. Xu, Zhitao & Elomri, Adel & Al-Ansari, Tareq & Kerbache, Laoucine & El Mekkawy, Tarek, 2022. "Decisions on design and planning of solar-assisted hydroponic farms under various subsidy schemes," Renewable and Sustainable Energy Reviews, Elsevier, vol. 156(C).
    6. Sredenšek, Klemen & Štumberger, Bojan & Hadžiselimović, Miralem & Mavsar, Primož & Seme, Sebastijan, 2022. "Physical, geographical, technical, and economic potential for the optimal configuration of photovoltaic systems using a digital surface model and optimization method," Energy, Elsevier, vol. 242(C).
    7. 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.
    8. Ke Shi & Chuangyi Li & Choongwan Koo, 2021. "A Techno-Economic Feasibility Analysis of Mono-Si and Poly-Si Photovoltaic Systems in the Rooftop Area of Commercial Building under the Feed-In Tariff Scheme," Sustainability, MDPI, vol. 13(9), pages 1-22, April.
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