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Carbon Credit Earned by Rooftop PV Systems: Assessing Opportunities for Carbon Market Adoption in the Ecuadorian Context

Author

Listed:
  • Ruben Hidalgo-Leon

    (Centro de Energias Renovables y Alternativas, Escuela Superior Politecnica del Litoral, ESPOL, Campus Gustavo Galindo, Km. 30.5 Vía Perimetral, Guayaquil 090902, Ecuador
    Facultad de Ingenieria en Mecanica y Ciencias de la Produccion, Escuela Superior Politecnica del Litoral, ESPOL, Campus Gustavo Galindo, Km. 30.5 Via Perimetral, Guayaquil 090902, Ecuador)

  • Jose Campoverde-Gil

    (ESPAE Graduate School of Management, Escuela Superior Politecnica del Litoral, ESPOL, Campus Peñas, Malecon 100 y Loja, Guayaquil 090306, Ecuador)

  • Jaqueline Litardo

    (Centro de Energias Renovables y Alternativas, Escuela Superior Politecnica del Litoral, ESPOL, Campus Gustavo Galindo, Km. 30.5 Vía Perimetral, Guayaquil 090902, Ecuador
    Department of Architecture, Built Environment and Construction Engineering (DABC), Politecnico di Milano, Via Ponzio 31, 20133 Milano, Italy)

  • Miguel Torres

    (Centro de Energias Renovables y Alternativas, Escuela Superior Politecnica del Litoral, ESPOL, Campus Gustavo Galindo, Km. 30.5 Vía Perimetral, Guayaquil 090902, Ecuador
    Facultad de Ingenieria en Electricidad y Computacion, Escuela Superior Politecnica del Litoral, ESPOL, Campus Gustavo Galindo, Km. 30.5 Vía Perimetral, Guayaquil 090902, Ecuador)

  • Maria Luisa Granda

    (ESPAE Graduate School of Management, Escuela Superior Politecnica del Litoral, ESPOL, Campus Peñas, Malecon 100 y Loja, Guayaquil 090306, Ecuador)

  • Viviana Villavicencio

    (Department of Electrical and Computer Engineering, Villanova University, Villanova, PA 19085, USA)

  • Scarleth Vasconcelos

    (Department of Sustainable Engineering, Villanova University, Villanova, PA 19085, USA)

  • Cristian A. Hernandez

    (Facultad de Ingenieria en Mecanica y Ciencias de la Produccion, Escuela Superior Politecnica del Litoral, ESPOL, Campus Gustavo Galindo, Km. 30.5 Via Perimetral, Guayaquil 090902, Ecuador)

  • Juan Solano-Aguirre

    (Facultad de Ingenieria en Electricidad y Computacion, Escuela Superior Politecnica del Litoral, ESPOL, Campus Gustavo Galindo, Km. 30.5 Vía Perimetral, Guayaquil 090902, Ecuador)

  • Pritpal Singh

    (Department of Electrical and Computer Engineering, Villanova University, Villanova, PA 19085, USA)

  • Guillermo Soriano

    (Centro de Energias Renovables y Alternativas, Escuela Superior Politecnica del Litoral, ESPOL, Campus Gustavo Galindo, Km. 30.5 Vía Perimetral, Guayaquil 090902, Ecuador
    Facultad de Ingenieria en Mecanica y Ciencias de la Produccion, Escuela Superior Politecnica del Litoral, ESPOL, Campus Gustavo Galindo, Km. 30.5 Via Perimetral, Guayaquil 090902, Ecuador)

Abstract

This study assessed the techno-economic and environmental feasibility of a grid-connected PV system on a university building, with a focus on potential revenue from carbon credit sales. The analysis assumes a regulated CO 2 emissions market in Ecuador and references carbon credit prices from the European Union, New Zealand, China, and the Republic of Korea. Seven PV system configurations, varying in size and capacity, were modeled using Homer Pro and assessed for their techno-economic feasibility and environmental performance. The results indicated that the 166 kWp system was the most promising, supplying approximately 74% of the building’s electricity demand. Thus, this system was selected as the baseline for evaluating potential revenues from carbon credit sales in international markets, based on average carbon prices in 2022. The selected markets generated annual revenues of USD 4410.68, USD 2587.55, USD 446.34, and USD 958.37, respectively. While these additional revenues improved the Net Present Value (NPV) of the 166 kWp system, the overall NPV remained negative due to the high initial investment costs.

Suggested Citation

  • Ruben Hidalgo-Leon & Jose Campoverde-Gil & Jaqueline Litardo & Miguel Torres & Maria Luisa Granda & Viviana Villavicencio & Scarleth Vasconcelos & Cristian A. Hernandez & Juan Solano-Aguirre & Pritpal, 2025. "Carbon Credit Earned by Rooftop PV Systems: Assessing Opportunities for Carbon Market Adoption in the Ecuadorian Context," Clean Technol., MDPI, vol. 7(2), pages 1-21, April.
    • Handle: RePEc:gam:jcltec:v:7:y:2025:i:2:p:28-:d:1625330
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