IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v12y2019i3p345-d200108.html
   My bibliography  Save this article

Complete Procedure for the Economic, Financial and Cost-Competitiveness of Photovoltaic Systems with Self-Consumption

Author

Listed:
  • D. L. Talavera

    (IDEA Research Group (Research and Development in Solar Energy), Electronic and Automation Engineering Department, University of Jaén, Campus las Lagunillas s/n. 23071 Jaén, Spain)

  • E. Muñoz-Cerón

    (IDEA Research Group (Research and Development in Solar Energy) and Centre for Advanced Studies in Energy and Environment (CEAEMA), Department of Graphic Engineering, Design and Projects, University of Jaén, Campus las Lagunillas s/n. 23071 Jaén, Spain)

  • J. de la Casa

    (IDEA Research Group (Research and Development in Solar Energy), Electronic and Automation Engineering Department, University of Jaén, Campus las Lagunillas s/n. 23071 Jaén, Spain)

  • D. Lozano-Arjona

    (IDEA Research Group (Research and Development in Solar Energy), Electronic and Automation Engineering Department, University of Jaén, Campus las Lagunillas s/n. 23071 Jaén, Spain)

  • M. Theristis

    (PV Technology Lab. FOSS Research Centre for Sustainable Energy, Department of Electrical and Computer Engineering, University of Cyprus, Nicosia 1678, Cyprus)

  • P. J. Pérez-Higueras

    (IDEA Research Group (Research and Development in Solar Energy), Electronic and Automation Engineering Department, University of Jaén, Campus las Lagunillas s/n. 23071 Jaén, Spain)

Abstract

Nowadays, the integration of photovoltaic (PV) systems into the grid involves new and competitive ways to realize this. Thus, it is necessary to define procedures that not only include energy calculations but also incorporate economic and funding feasibility features. According to the literature review, there are numerous tools that are available to carry out a profitability analysis of a photovoltaic system. However, certain shortcomings have been identified, either in the definition of the economic and financial scenarios or in the results obtained, as they do not provide all the necessary information, do not use all the most common economic criteria, or in some cases the complexity and training requirements for their correct implementation may discourage their use. Therefore, in this paper a complete procedure that can be used as a preliminary decision tool prior to the design of an in-depth PV self-consumption system is proposed. Realistic input data makes it possible to not only obtain results for common economic and financial feasibility criteria (Net Present Value, Internal Rate of Return, Discounted Pay-Back Time and Net Cash Balance), but it also allow for a cost-competitiveness evaluation based on the Levelised Cost of Electricity (LCOE). The novel concept of the direct cost of PV self-consumed electricity is also introduced.

Suggested Citation

  • D. L. Talavera & E. Muñoz-Cerón & J. de la Casa & D. Lozano-Arjona & M. Theristis & P. J. Pérez-Higueras, 2019. "Complete Procedure for the Economic, Financial and Cost-Competitiveness of Photovoltaic Systems with Self-Consumption," Energies, MDPI, vol. 12(3), pages 1-22, January.
    • Handle: RePEc:gam:jeners:v:12:y:2019:i:3:p:345-:d:200108
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/12/3/345/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1996-1073/12/3/345/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Talavera, D.L. & Muñoz-Rodriguez, F.J. & Jimenez-Castillo, G. & Rus-Casas, C., 2019. "A new approach to sizing the photovoltaic generator in self-consumption systems based on cost–competitiveness, maximizing direct self-consumption," Renewable Energy, Elsevier, vol. 130(C), pages 1021-1035.
    2. Ruiz-Arias, J.A. & Terrados, J. & Pérez-Higueras, P. & Pozo-Vázquez, D. & Almonacid, G., 2012. "Assessment of the renewable energies potential for intensive electricity production in the province of Jaén, southern Spain," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(5), pages 2994-3001.
    3. Almonacid, F. & Rus, C. & Hontoria, L. & Fuentes, M. & Nofuentes, G., 2009. "Characterisation of Si-crystalline PV modules by artificial neural networks," Renewable Energy, Elsevier, vol. 34(4), pages 941-949.
    4. Haegermark, Maria & Kovacs, Peter & Dalenbäck, Jan-Olof, 2017. "Economic feasibility of solar photovoltaic rooftop systems in a complex setting: A Swedish case study," Energy, Elsevier, vol. 127(C), pages 18-29.
    5. Unknown, 2016. "Energy for Sustainable Development," Conference Proceedings 253270, Guru Arjan Dev Institute of Development Studies (IDSAsr).
    6. Bertsch, Valentin & Geldermann, Jutta & Lühn, Tobias, 2017. "What drives the profitability of household PV investments, self-consumption and self-sufficiency?," Applied Energy, Elsevier, vol. 204(C), pages 1-15.
    7. Muñoz-Cerón, E. & Lomas, J.C. & Aguilera, J. & de la Casa, J., 2018. "Influence of Operation and Maintenance expenditures in the feasibility of photovoltaic projects: The case of a tracking pv plant in Spain," Energy Policy, Elsevier, vol. 121(C), pages 506-518.
    8. Branker, K. & Pathak, M.J.M. & Pearce, J.M., 2011. "A review of solar photovoltaic levelized cost of electricity," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(9), pages 4470-4482.
    9. Talavera, D.L. & Muñoz-Cerón, E. & de la Casa, J. & Ortega, M.J. & Almonacid, G., 2011. "Energy and economic analysis for large-scale integration of small photovoltaic systems in buildings: The case of a public location in Southern Spain," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(9), pages 4310-4319.
    10. Talavera, D.L. & Muñoz-Cerón, E. & Ferrer-Rodríguez, J.P. & Nofuentes, G., 2016. "Evolution of the cost and economic profitability of grid-connected PV investments in Spain: Long-term review according to the different regulatory frameworks approved," Renewable and Sustainable Energy Reviews, Elsevier, vol. 66(C), pages 233-247.
    11. Lomas, J.C. & Muñoz-Cerón, E. & Nofuentes, G. & de la Casa, J., 2018. "Sale of profitable but unaffordable PV plants in Spain: Analysis of a real case," Energy Policy, Elsevier, vol. 117(C), pages 279-294.
    12. Schopfer, S. & Tiefenbeck, V. & Staake, T., 2018. "Economic assessment of photovoltaic battery systems based on household load profiles," Applied Energy, Elsevier, vol. 223(C), pages 229-248.
    13. Akshay Suhas Baitule & K Sudhakar, 2017. "Solar powered green campus: a simulation study," International Journal of Low-Carbon Technologies, Oxford University Press, vol. 12(4), pages 400-410.
    14. Koumparou, Ioannis & Christoforidis, Georgios C. & Efthymiou, Venizelos & Papagiannis, Grigoris K. & Georghiou, George E., 2017. "Configuring residential PV net-metering policies – A focus on the Mediterranean region," Renewable Energy, Elsevier, vol. 113(C), pages 795-812.
    15. 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.
    16. Kaschub, Thomas & Jochem, Patrick & Fichtner, Wolf, 2016. "Solar energy storage in German households: profitability, load changes and flexibility," Energy Policy, Elsevier, vol. 98(C), pages 520-532.
    17. 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.
    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. Jiménez-Castillo, G. & Muñoz-Rodriguez, F.J. & Rus-Casas, C. & Talavera, D.L., 2020. "A new approach based on economic profitability to sizing the photovoltaic generator in self-consumption systems without storage," Renewable Energy, Elsevier, vol. 148(C), pages 1017-1033.
    2. Ludwik Wicki & Robert Pietrzykowski & Dariusz Kusz, 2022. "Factors Determining the Development of Prosumer Photovoltaic Installations in Poland," Energies, MDPI, vol. 15(16), pages 1-19, August.
    3. Alexandra G. Papadopoulou & George Vasileiou & Alexandros Flamos, 2020. "A Comparison of Dispatchable RES Technoeconomics: Is There a Niche for Concentrated Solar Power?," Energies, MDPI, vol. 13(18), pages 1-22, September.
    4. 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.
    5. de Oliveira Pinto Coelho, Eden & Aquila, Giancarlo & Bonatto, Benedito Donizeti & Balestrassi, Pedro Paulo & de Oliveira Pamplona, Edson & Nakamura, Wilson Toshiro, 2021. "Regulatory impact of photovoltaic prosumer policies in Brazil based on a financial risk analysis," Utilities Policy, Elsevier, vol. 70(C).
    6. 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.
    7. Chang, Soowon & Cho, Junyoung & Heo, Jae & Kang, Junsuk & Kobashi, Takuro, 2022. "Energy infrastructure transitions with PV and EV combined systems using techno-economic analyses for decarbonization in cities," Applied Energy, Elsevier, vol. 319(C).

    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. 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.
    2. Jiménez-Castillo, G. & Muñoz-Rodriguez, F.J. & Rus-Casas, C. & Talavera, D.L., 2020. "A new approach based on economic profitability to sizing the photovoltaic generator in self-consumption systems without storage," Renewable Energy, Elsevier, vol. 148(C), pages 1017-1033.
    3. Talavera, D.L. & Muñoz-Rodriguez, F.J. & Jimenez-Castillo, G. & Rus-Casas, C., 2019. "A new approach to sizing the photovoltaic generator in self-consumption systems based on cost–competitiveness, maximizing direct self-consumption," Renewable Energy, Elsevier, vol. 130(C), pages 1021-1035.
    4. Talavera, D.L. & Muñoz-Cerón, Emilio & Ferrer-Rodríguez, J.P. & Pérez-Higueras, Pedro J., 2019. "Assessment of cost-competitiveness and profitability of fixed and tracking photovoltaic systems: The case of five specific sites," Renewable Energy, Elsevier, vol. 134(C), pages 902-913.
    5. 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.
    6. Gallego-Castillo, Cristobal & Heleno, Miguel & Victoria, Marta, 2021. "Self-consumption for energy communities in Spain: A regional analysis under the new legal framework," Energy Policy, Elsevier, vol. 150(C).
    7. de Oliveira Pinto Coelho, Eden & Aquila, Giancarlo & Bonatto, Benedito Donizeti & Balestrassi, Pedro Paulo & de Oliveira Pamplona, Edson & Nakamura, Wilson Toshiro, 2021. "Regulatory impact of photovoltaic prosumer policies in Brazil based on a financial risk analysis," Utilities Policy, Elsevier, vol. 70(C).
    8. Zhang, Yijie & Ma, Tao & Elia Campana, Pietro & Yamaguchi, Yohei & Dai, Yanjun, 2020. "A techno-economic sizing method for grid-connected household photovoltaic battery systems," Applied Energy, Elsevier, vol. 269(C).
    9. Aniello, Gianmarco & Bertsch, Valentin, 2023. "Shaping the energy transition in the residential sector: Regulatory incentives for aligning household and system perspectives," Applied Energy, Elsevier, vol. 333(C).
    10. Olivella, Jordi & Domenech, Bruno & Calleja, Gema, 2021. "Potential of implementation of residential photovoltaics at city level: The case of London," Renewable Energy, Elsevier, vol. 180(C), pages 577-585.
    11. Gomez-Gonzalez, M. & Hernandez, J.C. & Vera, D. & Jurado, F., 2020. "Optimal sizing and power schedule in PV household-prosumers for improving PV self-consumption and providing frequency containment reserve," Energy, Elsevier, vol. 191(C).
    12. Andreolli, Francesca & D’Alpaos, Chiara & Moretto, Michele, 2022. "Valuing investments in domestic PV-Battery Systems under uncertainty," Energy Economics, Elsevier, vol. 106(C).
    13. Muñoz-Cerón, E. & Lomas, J.C. & Aguilera, J. & de la Casa, J., 2018. "Influence of Operation and Maintenance expenditures in the feasibility of photovoltaic projects: The case of a tracking pv plant in Spain," Energy Policy, Elsevier, vol. 121(C), pages 506-518.
    14. Claudia Gunther & Wolf-Peter Schill & Alexander Zerrahn, 2019. "Prosumage of solar electricity: tariff design, capacity investments, and power system effects," Papers 1907.09855, arXiv.org.
    15. Fett, Daniel & Fraunholz, Christoph & Keles, Dogan, 2021. "Diffusion and system impact of residential battery storage under different regulatory settings," Energy Policy, Elsevier, vol. 158(C).
    16. Lopez, A. & Ogayar, B. & Hernández, J.C. & Sutil, F.S., 2020. "Survey and assessment of technical and economic features for the provision of frequency control services by household-prosumers," Energy Policy, Elsevier, vol. 146(C).
    17. Günther, Claudia & Schill, Wolf-Peter & Zerrahn, Alexander, 2021. "Prosumage of solar electricity: Tariff design, capacity investments, and power sector effects," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 152.
    18. Roberts, Mike B. & Bruce, Anna & MacGill, Iain, 2019. "Impact of shared battery energy storage systems on photovoltaic self-consumption and electricity bills in apartment buildings," Applied Energy, Elsevier, vol. 245(C), pages 78-95.
    19. Ma, Tao & Zhang, Yijie & Gu, Wenbo & Xiao, Gang & Yang, Hongxing & Wang, Shuxiao, 2022. "Strategy comparison and techno-economic evaluation of a grid-connected photovoltaic-battery system," Renewable Energy, Elsevier, vol. 197(C), pages 1049-1060.
    20. Frank Fiedler & Joaquin Coll Matas, 2022. "Techno-Economic Analysis of Grid-Connected PV Battery Solutions for Holiday Homes in Sweden," Energies, MDPI, vol. 15(8), pages 1-21, April.

    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:gam:jeners:v:12:y:2019:i:3:p:345-:d:200108. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.