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Analysis of the Impact of the Assumed Moment of Meeting Total Energy Demand on the Profitability of Photovoltaic Installations for Households in Poland

Author

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  • Natalia Iwaszczuk

    (Faculty of Management, AGH University of Science and Technology, 30-059 Cracow, Poland)

  • Mariusz Trela

    (Faculty of Management, AGH University of Science and Technology, 30-059 Cracow, Poland)

Abstract

In this article, the authors analyzed two extreme investment variants considering the installed capacity of Poland’s residential pv installation: (a) pv installation meets electricity demand only in the first year of operation, and in each subsequent year it is necessary to purchase electricity at market prices; (b) installation meets electricity demand even in the last year of operation, and in each previous year, the excess of generated electricity needs to be transferred back to the grid, with the limited (by law) right of drawing it from the grid for free in the future. In the article, a sensitivity analysis was performed, and profitability changes were established based on the NPV value, depending on case (a) or (b). The performed analyses showed that the pv installation profitability should not be analyzed, assuming only one moment when it meets 100% of the household’s electricity demand. It was shown that the choice of such a moment, depending on the value of particular technical and financial parameters, can lead to a change in the NPV value, even over 10%. Although the studies were done for Poland, such an approach can be implemented in other countries.

Suggested Citation

  • Natalia Iwaszczuk & Mariusz Trela, 2021. "Analysis of the Impact of the Assumed Moment of Meeting Total Energy Demand on the Profitability of Photovoltaic Installations for Households in Poland," Energies, MDPI, vol. 14(6), pages 1-15, March.
    • Handle: RePEc:gam:jeners:v:14:y:2021:i:6:p:1637-:d:517340
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    1. Dariusz Kurz & Agata Nowak, 2023. "Analysis of the Impact of the Level of Self-Consumption of Electricity from a Prosumer Photovoltaic Installation on Its Profitability under Different Energy Billing Scenarios in Poland," Energies, MDPI, vol. 16(2), pages 1-40, January.
    2. Ryszard Kata & Kazimierz Cyran & Sławomir Dybka & Małgorzata Lechwar & Rafał Pitera, 2021. "Economic and Social Aspects of Using Energy from PV and Solar Installations in Farmers’ Households in the Podkarpackie Region," Energies, MDPI, vol. 14(11), pages 1-21, May.
    3. Grzegorz Lew & Beata Sadowska & Katarzyna Chudy-Laskowska & Grzegorz Zimon & Magdalena Wójcik-Jurkiewicz, 2021. "Influence of Photovoltaic Development on Decarbonization of Power Generation—Example of Poland," Energies, MDPI, vol. 14(22), pages 1-20, November.
    4. 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.
    5. Olczak, Piotr, 2023. "Evaluation of degradation energy productivity of photovoltaic installations in long-term case study," Applied Energy, Elsevier, vol. 343(C).
    6. Marcin Bukowski & Janusz Majewski & Agnieszka Sobolewska, 2021. "Macroeconomic Efficiency of Photovoltaic Energy Production in Polish Farms," Energies, MDPI, vol. 14(18), pages 1-19, September.

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