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Tables for the estimation of the internal rate of return of photovoltaic grid-connected systems

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  • Talavera, D.L.
  • Nofuentes, G.
  • Aguilera, J.
  • Fuentes, M.

Abstract

A continuous decrease trend in PV costs together with a wide variety of supporting measures have turned photovoltaic grid-connected systems (PVGCS) into a profitable investment when some economic conditions are met. The internal rate of return (IRR) is a meaningful parameter for prospective owners of these PV systems. Nevertheless, this parameter has to be estimated by means of non-analytical methods. This paper presents some easy-to-use tables addressed to estimate the IRR avoiding cumbersome calculations, which is an attractive feature for owners, marketers and designers. Firstly, current and near-term costs of PVGCS are reviewed, together with some financial incentives available at present. This introduces the economic scenario, where the tables are to be used. A short introduction to the economic analysis of these systems provides a solid ground to eventually present the tables intended to the estimation of the IRR. Lastly, three examples demonstrate the use of the tables.

Suggested Citation

  • Talavera, D.L. & Nofuentes, G. & Aguilera, J. & Fuentes, M., 2007. "Tables for the estimation of the internal rate of return of photovoltaic grid-connected systems," Renewable and Sustainable Energy Reviews, Elsevier, vol. 11(3), pages 447-466, April.
    • Handle: RePEc:eee:rensus:v:11:y:2007:i:3:p:447-466
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    1. Jäger-Waldau, Arnulf & Ossenbrink, Heinz, 2004. "Progress of electricity from biomass, wind and photovoltaics in the European Union," Renewable and Sustainable Energy Reviews, Elsevier, vol. 8(2), pages 157-182, April.
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