IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v16y2023i7p3006-d1107139.html
   My bibliography  Save this article

Analysis of Investments in RES Based on the Example of Photovoltaic Panels in Conditions of Uncertainty and Risk—A Case Study

Author

Listed:
  • Anna Wojewnik-Filipkowska

    (Department of Investment and Real Estate, Faculty of Management, University of Gdańsk, Armii Krajowej 101, 81-824 Sopot, Poland)

  • Paweł Filipkowski

    (Department of Food Chemistry, Technology and Biotechnology, Faculty of Chemistry, Gdańsk University of Technology, Gabriela Narutowicza 11/12, 80-233 Gdańsk, Poland)

  • Olaf Frąckowiak

    (Department of Investment and Real Estate, Faculty of Management, University of Gdańsk, Armii Krajowej 101, 81-824 Sopot, Poland)

Abstract

The aim of this study is to examine the profitability of investment in a photovoltaic microinstallation, to analyze the impact of legal changes on its profitability, and to perform a sensitivity analysis of the investment profitability to energy price changes. The novelty of the research applies to the financial analysis of two legal systems of discount called net-metering and net-billing. The two systems and the change in energy prices present legal and macroeconomic risks. Climate neutrality strategy implementation is the analysis background. The authors formulate the hypothesis that, firstly, the solar panel installations in Poland are aimed at reducing the operating costs of the building; secondly, the investment motivation is environmental. The main research conclusion is that taking into consideration the solar panel ‘boom’ in Poland, the ‘regulator’ has achieved its intended goal connected with progress toward climate neutrality. This research used the method of logical design, experiment, and comparative analysis. The tools applied to calculate project profitability included the internal rate of return (IRR) and net present value (NPV). The case study method has been applied. The analysis uses real-world assumptions and is conducted for weather conditions in Gdańsk, Poland.

Suggested Citation

  • Anna Wojewnik-Filipkowska & Paweł Filipkowski & Olaf Frąckowiak, 2023. "Analysis of Investments in RES Based on the Example of Photovoltaic Panels in Conditions of Uncertainty and Risk—A Case Study," Energies, MDPI, vol. 16(7), pages 1-15, March.
    • Handle: RePEc:gam:jeners:v:16:y:2023:i:7:p:3006-:d:1107139
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/16/7/3006/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1996-1073/16/7/3006/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Gallo, A.B. & Simões-Moreira, J.R. & Costa, H.K.M. & Santos, M.M. & Moutinho dos Santos, E., 2016. "Energy storage in the energy transition context: A technology review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 65(C), pages 800-822.
    2. Renata Marks-Bielska & Stanisław Bielski & Katarzyna Pik & Krystyna Kurowska, 2020. "The Importance of Renewable Energy Sources in Poland’s Energy Mix," Energies, MDPI, vol. 13(18), pages 1-23, September.
    3. Kijo-Kleczkowska, Agnieszka & Bruś, Paweł & Więciorkowski, Grzegorz, 2022. "Profitability analysis of a photovoltaic installation - A case study," Energy, Elsevier, vol. 261(PB).
    4. Olabi, A.G. & Abdelkareem, Mohammad Ali, 2022. "Renewable energy and climate change," Renewable and Sustainable Energy Reviews, Elsevier, vol. 158(C).
    5. 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.
    6. 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.
    7. Henrik Zsiborács & Nóra Hegedűsné Baranyai & András Vincze & István Háber & Gábor Pintér, 2018. "Economic and Technical Aspects of Flexible Storage Photovoltaic Systems in Europe," Energies, MDPI, vol. 11(6), pages 1-17, June.
    8. Ewa Chomać-Pierzecka & Anna Sobczak & Edward Urbańczyk, 2022. "RES Market Development and Public Awareness of the Economic and Environmental Dimension of the Energy Transformation in Poland and Lithuania," Energies, MDPI, vol. 15(15), pages 1-18, July.
    9. Federica Cucchiella & Idiano D’Adamo & Massimo Gastaldi & Vincenzo Stornelli, 2018. "Solar Photovoltaic Panels Combined with Energy Storage in a Residential Building: An Economic Analysis," Sustainability, MDPI, vol. 10(9), pages 1-29, August.
    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. Jacek Caban & Arkadiusz Małek & Branislav Šarkan, 2024. "Strategic Model for Charging a Fleet of Electric Vehicles with Energy from Renewable Energy Sources," Energies, MDPI, vol. 17(5), pages 1-17, March.
    2. Paweł Ziemba, 2023. "Selection of Photovoltaic Panels Based on Ranges of Criteria Weights and Balanced Assessment Criteria," Energies, MDPI, vol. 16(17), pages 1-18, September.
    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.

    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. D'Adamo, Idiano & Gastaldi, Massimo & Morone, Piergiuseppe, 2022. "The impact of a subsidized tax deduction on residential solar photovoltaic-battery energy storage systems," Utilities Policy, Elsevier, vol. 75(C).
    3. Dasí-Crespo, Daniel & Roldán-Blay, Carlos & Escrivá-Escrivá, Guillermo & Roldán-Porta, Carlos, 2023. "Evaluation of the Spanish regulation on self-consumption photovoltaic installations. A case study based on a rural municipality in Spain," Renewable Energy, Elsevier, vol. 204(C), pages 788-802.
    4. Ziyu Wang & Guangya Yang, 2019. "Static Operational Impacts of Residential Solar PV Plants on the Medium Voltage Distribution Grids—A Case Study Based on the Danish Island Bornholm," Energies, MDPI, vol. 12(8), pages 1-16, April.
    5. Miguel Ángel Pardo & Ricardo Cobacho & Luis Bañón, 2020. "Standalone Photovoltaic Direct Pumping in Urban Water Pressurized Networks with Energy Storage in Tanks or Batteries," Sustainability, MDPI, vol. 12(2), pages 1-20, January.
    6. Federica Cucchiella & Idiano D’Adamo & Massimo Gastaldi & Vincenzo Stornelli, 2018. "Solar Photovoltaic Panels Combined with Energy Storage in a Residential Building: An Economic Analysis," Sustainability, MDPI, vol. 10(9), pages 1-29, August.
    7. Andreolli, Francesca & D’Alpaos, Chiara & Moretto, Michele, 2022. "Valuing investments in domestic PV-Battery Systems under uncertainty," Energy Economics, Elsevier, vol. 106(C).
    8. Igliński, Bartłomiej & Pietrzak, Michał Bernard & Kiełkowska, Urszula & Skrzatek, Mateusz & Kumar, Gopalakrishnan & Piechota, Grzegorz, 2022. "The assessment of renewable energy in Poland on the background of the world renewable energy sector," Energy, Elsevier, vol. 261(PB).
    9. Kar, Sumi & Basu, Kajla & Sarkar, Biswajit, 2023. "Advertisement policy for dual-channel within emissions-controlled flexible production system," Journal of Retailing and Consumer Services, Elsevier, vol. 71(C).
    10. Dimitar Bozalakov & Mohannad J. Mnati & Joannes Laveyne & Jan Desmet & Lieven Vandevelde, 2019. "Battery Storage Integration in Voltage Unbalance and Overvoltage Mitigation Control Strategies and Its Impact on the Power Quality," Energies, MDPI, vol. 12(8), pages 1-26, April.
    11. Iolanda Saviuc & Herbert Peremans & Steven Van Passel & Kevin Milis, 2019. "Economic Performance of Using Batteries in European Residential Microgrids under the Net-Metering Scheme," Energies, MDPI, vol. 12(1), pages 1-28, January.
    12. Luigi Fortuna & Arturo Buscarino, 2022. "Sustainable Energy Systems," Energies, MDPI, vol. 15(23), pages 1-7, December.
    13. Ewa Chomać-Pierzecka & Andrzej Kokiel & Joanna Rogozińska-Mitrut & Anna Sobczak & Dariusz Soboń & Jacek Stasiak, 2022. "Hydropower in the Energy Market in Poland and the Baltic States in the Light of the Challenges of Sustainable Development-An Overview of the Current State and Development Potential," Energies, MDPI, vol. 15(19), pages 1-19, October.
    14. Guelpa, Elisa & Bischi, Aldo & Verda, Vittorio & Chertkov, Michael & Lund, Henrik, 2019. "Towards future infrastructures for sustainable multi-energy systems: A review," Energy, Elsevier, vol. 184(C), pages 2-21.
    15. 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).
    16. Mahsa Dehghan Manshadi & Milad Mousavi & M. Soltani & Amir Mosavi & Levente Kovacs, 2022. "Deep Learning for Modeling an Offshore Hybrid Wind–Wave Energy System," Energies, MDPI, vol. 15(24), pages 1-16, December.
    17. Kumarasamy Palanimuthu & Ganesh Mayilsamy & Ameerkhan Abdul Basheer & Seong-Ryong Lee & Dongran Song & Young Hoon Joo, 2022. "A Review of Recent Aerodynamic Power Extraction Challenges in Coordinated Pitch, Yaw, and Torque Control of Large-Scale Wind Turbine Systems," Energies, MDPI, vol. 15(21), pages 1-27, November.
    18. Alexandru Ciocan & Cosmin Ungureanu & Alin Chitu & Elena Carcadea & George Darie, 2020. "Electrical Longboard for Everyday Urban Commuting," Sustainability, MDPI, vol. 12(19), pages 1-14, September.
    19. Anna Duczkowska & Ewa Kulińska & Zbigniew Plutecki & Joanna Rut, 2022. "Sustainable Agro-Biomass Market for Urban Heating Using Centralized District Heating System," Energies, MDPI, vol. 15(12), pages 1-23, June.
    20. Milad Zeraatpisheh & Reza Arababadi & Mohsen Saffari Pour, 2018. "Economic Analysis for Residential Solar PV Systems Based on Different Demand Charge Tariffs," Energies, MDPI, vol. 11(12), pages 1-19, November.

    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:16:y:2023:i:7:p:3006-:d:1107139. 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.