IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v14y2021i6p1637-d517340.html
   My bibliography  Save this article

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

Author

Listed:
  • 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
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/14/6/1637/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1996-1073/14/6/1637/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Talavera, D.L. & Pérez-Higueras, P. & Almonacid, F. & Fernández, E.F., 2017. "A worldwide assessment of economic feasibility of HCPV power plants: Profitability and competitiveness," Energy, Elsevier, vol. 119(C), pages 408-424.
    2. Ewa Klugmann-Radziemska, 2020. "Shading, Dusting and Incorrect Positioning of Photovoltaic Modules as Important Factors in Performance Reduction," Energies, MDPI, vol. 13(8), pages 1-12, April.
    3. Tamer Khatib & Dhiaa Halboot Muhsen, 2020. "Optimal Sizing of Standalone Photovoltaic System Using Improved Performance Model and Optimization Algorithm," Sustainability, MDPI, vol. 12(6), pages 1-18, March.
    4. 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.
    5. Federica Cucchiella & Idiano D’Adamo & Massimo Gastaldi, 2017. "Economic Analysis of a Photovoltaic System: A Resource for Residential Households," Energies, MDPI, vol. 10(6), pages 1-15, June.
    6. Ramadhan, Mohammad & Naseeb, Adel, 2011. "The cost benefit analysis of implementing photovoltaic solar system in the state of Kuwait," Renewable Energy, Elsevier, vol. 36(4), pages 1272-1276.
    7. Piotr Olczak & Małgorzata Olek & Dominika Matuszewska & Artur Dyczko & Tomasz Mania, 2021. "Monofacial and Bifacial Micro PV Installation as Element of Energy Transition—The Case of Poland," Energies, MDPI, vol. 14(2), pages 1-22, January.
    8. Hassan, Qusay, 2021. "Evaluation and optimization of off-grid and on-grid photovoltaic power system for typical household electrification," Renewable Energy, Elsevier, vol. 164(C), pages 375-390.
    9. Mohammadi, Kasra & Naderi, Mahmoud & Saghafifar, Mohammad, 2018. "Economic feasibility of developing grid-connected photovoltaic plants in the southern coast of Iran," Energy, Elsevier, vol. 156(C), pages 17-31.
    10. Jakub Jurasz & Marcin Wdowikowski & Mariusz Figurski, 2020. "Simulating Power Generation from Photovoltaics in the Polish Power System Based on Ground Meteorological Measurements—First Tests Based on Transmission System Operator Data," Energies, MDPI, vol. 13(16), pages 1-10, August.
    11. Jan Wajs & Aleksandra Golabek & Roksana Bochniak, 2019. "Photovoltaic Roof Tiles: The Influence of Heat Recovery on Overall Performance," Energies, MDPI, vol. 12(21), pages 1-12, October.
    12. Bey, M. & Hamidat, A. & Benyoucef, B. & Nacer, T., 2016. "Viability study of the use of grid connected photovoltaic system in agriculture: Case of Algerian dairy farms," Renewable and Sustainable Energy Reviews, Elsevier, vol. 63(C), pages 333-345.
    13. Ewa Klugmann-Radziemska & Małgorzata Rudnicka, 2020. "The Analysis of Working Parameters Decrease in Photovoltaic Modules as a Result of Dust Deposition," Energies, MDPI, vol. 13(16), pages 1-11, August.
    14. Laleman, Ruben & Albrecht, Johan & Dewulf, Jo, 2011. "Life Cycle Analysis to estimate the environmental impact of residential photovoltaic systems in regions with a low solar irradiation," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(1), pages 267-281, January.
    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. 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.

    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. 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.
    2. Luigi Dolores & Maria Macchiaroli & Gianluigi De Mare, 2022. "Financial Impacts of the Energy Transition in Housing," Sustainability, MDPI, vol. 14(9), pages 1-17, April.
    3. Beata Hysa & Anna Mularczyk, 2024. "PESTEL Analysis of the Photovoltaic Market in Poland—A Systematic Review of Opportunities and Threats," Resources, MDPI, vol. 13(10), pages 1-29, September.
    4. Giovanni Cipriani & Antonino D’Amico & Stefania Guarino & Donatella Manno & Marzia Traverso & Vincenzo Di Dio, 2020. "Convolutional Neural Network for Dust and Hotspot Classification in PV Modules," Energies, MDPI, vol. 13(23), pages 1-17, December.
    5. 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.
    6. Bey, M. & Hamidat, A. & Nacer, T., 2021. "Eco-energetic feasibility study of using grid-connected photovoltaic system in wastewater treatment plant," Energy, Elsevier, vol. 216(C).
    7. Ferdinando Chiacchio & Fabio Famoso & Diego D’Urso & Luca Cedola, 2019. "Performance and Economic Assessment of a Grid-Connected Photovoltaic Power Plant with a Storage System: A Comparison between the North and the South of Italy," Energies, MDPI, vol. 12(12), pages 1-25, June.
    8. Gowtham Vedulla & Anbazhagan Geetha & Ramalingam Senthil, 2022. "Review of Strategies to Mitigate Dust Deposition on Solar Photovoltaic Systems," Energies, MDPI, vol. 16(1), pages 1-28, December.
    9. Martin A. Hubbe, 2023. "Sustainable Composites: A Review with Critical Questions to Guide Future Initiatives," Sustainability, MDPI, vol. 15(14), pages 1-18, July.
    10. Cagli, Efe Caglar, 2023. "The volatility spillover between battery metals and future mobility stocks: Evidence from the time-varying frequency connectedness approach," Resources Policy, Elsevier, vol. 86(PA).
    11. Besagni, Giorgio & Premoli Vilà, Lidia & Borgarello, Marco & Trabucchi, Andrea & Merlo, Marco & Rodeschini, Jacopo & Finazzi, Francesco, 2021. "Electrification pathways of the Italian residential sector under socio-demographic constrains: Looking towards 2040," Energy, Elsevier, vol. 217(C).
    12. Danielle Devogelaer, 2013. "Working Paper 07-13 - Walking the green mile in Employment - Employment projections for a green future," Working Papers 1307, Federal Planning Bureau, Belgium.
    13. Al-Amri, Fahad & Saeed, Farooq & Mujeebu, Muhammad Abdul, 2022. "Novel dual-function racking structure for passive cooling of solar PV panels –thermal performance analysis," Renewable Energy, Elsevier, vol. 198(C), pages 100-113.
    14. Angel L. Cedeño & Reinier López Ahuar & José Rojas & Gonzalo Carvajal & César Silva & Juan C. Agüero, 2022. "Model Predictive Control for Photovoltaic Plants with Non-Ideal Energy Storage Using Mixed Integer Linear Programming," Energies, MDPI, vol. 15(17), pages 1-21, September.
    15. Maammeur, H. & Hamidat, A. & Loukarfi, L. & Missoum, M. & Abdeladim, K. & Nacer, T., 2017. "Performance investigation of grid-connected PV systems for family farms: case study of North-West of Algeria," Renewable and Sustainable Energy Reviews, Elsevier, vol. 78(C), pages 1208-1220.
    16. Bartosz Wachnik & Zbigniew Chyba, 2021. "Key Growth Factors and Limitations of Photovoltaic Companies in Poland and the Phenomenon of Technology Entrepreneurship under Conditions of Information Asymmetry," Energies, MDPI, vol. 14(24), pages 1-16, December.
    17. Mohammed Wazed, Saeed & Hughes, Ben Richard & O’Connor, Dominic & Kaiser Calautit, John, 2018. "A review of sustainable solar irrigation systems for Sub-Saharan Africa," Renewable and Sustainable Energy Reviews, Elsevier, vol. 81(P1), pages 1206-1225.
    18. D'Adamo, Idiano & Mammetti, Marco & Ottaviani, Dario & Ozturk, Ilhan, 2023. "Photovoltaic systems and sustainable communities: New social models for ecological transition. The impact of incentive policies in profitability analyses," Renewable Energy, Elsevier, vol. 202(C), pages 1291-1304.
    19. Piotr Olczak & Małgorzata Olek & Dominika Matuszewska & Artur Dyczko & Tomasz Mania, 2021. "Monofacial and Bifacial Micro PV Installation as Element of Energy Transition—The Case of Poland," Energies, MDPI, vol. 14(2), pages 1-22, January.
    20. Piotr Wróblewski & Mariusz Niekurzak, 2022. "Assessment of the Possibility of Using Various Types of Renewable Energy Sources Installations in Single-Family Buildings as Part of Saving Final Energy Consumption in Polish Conditions," Energies, MDPI, vol. 15(4), pages 1-27, February.

    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:14:y:2021:i:6:p:1637-:d:517340. 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.