IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v15y2023i3p2233-d1046514.html
   My bibliography  Save this article

Development of Rooftop Solar under Netbilling in Chile: Analysis of Main Barriers from Project Developers’ Perspectives

Author

Listed:
  • Shahriyar Nasirov

    (Faculty of Engineering and Sciences, Universidad Adolfo Ibañez, Avenida Diagonal Las Torres 2640, Peñalolén, Santiago 7941169, Chile)

  • Paula Gonzalez

    (Faculty of Engineering and Sciences, Universidad Adolfo Ibañez, Avenida Diagonal Las Torres 2640, Peñalolén, Santiago 7941169, Chile)

  • Jose Opazo

    (Business School, Universidad Adolfo Ibañez, Avenida Diagonal Las Torres 2640, Peñalolén, Santiago 7941169, Chile)

  • Carlos Silva

    (Faculty of Engineering and Sciences, Universidad Adolfo Ibañez, Avenida Diagonal Las Torres 2640, Peñalolén, Santiago 7941169, Chile)

Abstract

The development of rooftop solar PV generation has significant potential to generate enormous benefits to the electricity systems in achieving emission reduction targets and meeting increasing global energy demand, but could also make the power systems more resilient and affordable. In 2012, the Chilean government introduced a net billing law (Law 20.517) to incentivize consumers to sell their excess renewable electricity into the grid, which was expected to lead to a significant growth in rooftop solar. However, to date, the advancement of these technologies in the country has been very limited due to various barriers. For this reason, identifying and mitigating the main barriers that impede the advancement of development of rooftop solar is necessary to allow the successful deployment of these technologies. Based on data collected from a questionnaire survey and interviews conducted among the project developers in rooftop solar, the authors identify and rank the major barriers to the adoption of these technologies in Chile. Our findings show that the most significant barriers include “high investment and recovery period for the customer”, “lack of incentives to develop projects in the sector”, “rigid regulations regarding project size”, and “long administrative process and grid connection costs”. Furthermore, we discuss the most critical barriers in detail together with policy recommendations to overcome them.

Suggested Citation

  • Shahriyar Nasirov & Paula Gonzalez & Jose Opazo & Carlos Silva, 2023. "Development of Rooftop Solar under Netbilling in Chile: Analysis of Main Barriers from Project Developers’ Perspectives," Sustainability, MDPI, vol. 15(3), pages 1-18, January.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:3:p:2233-:d:1046514
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/15/3/2233/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/15/3/2233/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Asmus, Peter, 2008. "Exploring New Models of Solar Energy Development," The Electricity Journal, Elsevier, vol. 21(3), pages 61-70, April.
    2. PraveenKumar, Seepana & Agyekum, Ephraim Bonah & Kumar, Abhinav & Velkin, Vladimir Ivanovich, 2023. "Performance evaluation with low-cost aluminum reflectors and phase change material integrated to solar PV modules using natural air convection: An experimental investigation," Energy, Elsevier, vol. 266(C).
    3. Nasirov, S. & Carredano, N. & Agostini, C.A. & Silva, C., 2021. "Public perception and adoption of Solar Water Heating systems in Chile: The role of supply side income tax credits," Renewable and Sustainable Energy Reviews, Elsevier, vol. 135(C).
    4. Huijben, J.C.C.M. & Verbong, G.P.J., 2013. "Breakthrough without subsidies? PV business model experiments in the Netherlands," Energy Policy, Elsevier, vol. 56(C), pages 362-370.
    5. Zhang, Sufang, 2016. "Analysis of DSPV (distributed solar PV) power policy in China," Energy, Elsevier, vol. 98(C), pages 92-100.
    6. Nasirov, Shahriyar & Agostini, Claudio A., 2018. "Mining experts' perspectives on the determinants of solar technologies adoption in the Chilean mining industry," Renewable and Sustainable Energy Reviews, Elsevier, vol. 95(C), pages 194-202.
    7. Avilés A., Camilo & Oliva H., Sebastian & Watts, David, 2019. "Single-dwelling and community renewable microgrids: Optimal sizing and energy management for new business models," Applied Energy, Elsevier, vol. 254(C).
    8. Engelken, Maximilian & Römer, Benedikt & Drescher, Marcus & Welpe, Isabell M. & Picot, Arnold, 2016. "Comparing drivers, barriers, and opportunities of business models for renewable energies: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 60(C), pages 795-809.
    9. Garlet, Taís Bisognin & Ribeiro, José Luis Duarte & de Souza Savian, Fernando & Mairesse Siluk, Julio Cezar, 2019. "Paths and barriers to the diffusion of distributed generation of photovoltaic energy in southern Brazil," Renewable and Sustainable Energy Reviews, Elsevier, vol. 111(C), pages 157-169.
    10. Inês, Campos & Guilherme, Pontes Luz & Esther, Marín-González & Swantje, Gährs & Stephen, Hall & Lars, Holstenkamp, 2020. "Regulatory challenges and opportunities for collective renewable energy prosumers in the EU," Energy Policy, Elsevier, vol. 138(C).
    11. Shahriyar Nasirov & Carlos Silva & Claudio A. Agostini, 2015. "Investors’ Perspectives on Barriers to the Deployment of Renewable Energy Sources in Chile," Energies, MDPI, vol. 8(5), pages 1-21, April.
    12. Yamaguchi, Yohei & Akai, Kenju & Shen, Junyi & Fujimura, Naoki & Shimoda, Yoshiyuki & Saijo, Tatsuyoshi, 2013. "Prediction of photovoltaic and solar water heater diffusion and evaluation of promotion policies on the basis of consumers’ choices," Applied Energy, Elsevier, vol. 102(C), pages 1148-1159.
    13. Ordóñez, J. & Jadraque, E. & Alegre, J. & Martínez, G., 2010. "Analysis of the photovoltaic solar energy capacity of residential rooftops in Andalusia (Spain)," Renewable and Sustainable Energy Reviews, Elsevier, vol. 14(7), pages 2122-2130, September.
    14. Tongsopit, Sopitsuda & Moungchareon, Sunee & Aksornkij, Apinya & Potisat, Tanai, 2016. "Business models and financing options for a rapid scale-up of rooftop solar power systems in Thailand," Energy Policy, Elsevier, vol. 95(C), pages 447-457.
    15. Dutt, Dwarkeshwar, 2020. "Understanding the barriers to the diffusion of rooftop solar: A case study of Delhi (India)," Energy Policy, Elsevier, vol. 144(C).
    16. Asante, Dennis & He, Zheng & Adjei, Nana Osae & Asante, Bismark, 2020. "Exploring the barriers to renewable energy adoption utilising MULTIMOORA- EDAS method," Energy Policy, Elsevier, vol. 142(C).
    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. Laktuka, Krista & Pakere, Ieva & Kalnbalkite, Antra & Zlaugotne, Beate & Blumberga, Dagnija, 2023. "Renewable energy project implementation: Will the Baltic States catch up with the Nordic countries?," Utilities Policy, Elsevier, vol. 82(C).
    2. Christian Manuel Moreno Rocha & Jorge D. Pertuz Ortiz & Neyder A. Rodriguez Ibanez, 2023. "A Diffuse Analysis Based on Analytical Processes to Prioritize Barriers in the Development of Renewable Energy Technologies in Alignment with the United Nations Sustainable Development Goals: Evidence," International Journal of Energy Economics and Policy, Econjournals, vol. 13(4), pages 481-195, July.

    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. Horváth, Dóra & Szabó, Roland Zs., 2018. "Evolution of photovoltaic business models: Overcoming the main barriers of distributed energy deployment," Renewable and Sustainable Energy Reviews, Elsevier, vol. 90(C), pages 623-635.
    2. Kamali Saraji, Mahyar & Aliasgari, Elahe & Streimikiene, Dalia, 2023. "Assessment of the challenges to renewable energy technologies adoption in rural areas: A Fermatean CRITIC-VIKOR approach," Technological Forecasting and Social Change, Elsevier, vol. 189(C).
    3. Hu, Bo & Zhou, P. & Zhang, L.P., 2022. "A digital business model for accelerating distributed renewable energy expansion in rural China," Applied Energy, Elsevier, vol. 316(C).
    4. Koerner, Sonja Angelika & Siew, Wei Sian & Salema, Arshad Adam & Balan, Poovarasi & Mekhilef, Saad & Thavamoney, Nisha, 2022. "Energy policies shaping the solar photovoltaics business models in Malaysia with some insights on Covid-19 pandemic effect," Energy Policy, Elsevier, vol. 164(C).
    5. Naimeh Mohammadi, 2023. "Investigation of Community Energy Business Models from an Institutional Perspective: Intermediaries and Policy Instruments in Selected Cases of Developing and Developed Countries," Sustainability, MDPI, vol. 15(10), pages 1-24, May.
    6. Abdul, Daud & Wenqi, Jiang & Sameeroddin, Mohd, 2023. "Prioritization of ecopreneurship barriers overcoming renewable energy technologies promotion: A comparative analysis of novel spherical fuzzy and Pythagorean fuzzy AHP approach," Technological Forecasting and Social Change, Elsevier, vol. 186(PA).
    7. Bernadette Fina & Hans Auer, 2020. "Economic Viability of Renewable Energy Communities under the Framework of the Renewable Energy Directive Transposed to Austrian Law," Energies, MDPI, vol. 13(21), pages 1-31, November.
    8. Fuster-Palop, Enrique & Prades-Gil, Carlos & Masip, X. & Viana-Fons, Joan D. & Payá, Jorge, 2021. "Innovative regression-based methodology to assess the techno-economic performance of photovoltaic installations in urban areas," Renewable and Sustainable Energy Reviews, Elsevier, vol. 149(C).
    9. Sara Ghaboulian Zare & Reza Hafezi & Mohammad Alipour & Reza Parsaei Tabar & Rodney A. Stewart, 2021. "Residential Solar Water Heater Adoption Behaviour: A Review of Economic and Technical Predictors and Their Correlation with the Adoption Decision," Energies, MDPI, vol. 14(20), pages 1-26, October.
    10. repec:grz:wpsses:2016-02 is not listed on IDEAS
    11. Li, Na & Okur, Özge, 2023. "Economic analysis of energy communities: Investment options and cost allocation," Applied Energy, Elsevier, vol. 336(C).
    12. Hossein Heirani & Naser Bagheri Moghaddam & Sina Labbafi & Seyedali Sina, 2022. "A Business Model for Developing Distributed Photovoltaic Systems in Iran," Sustainability, MDPI, vol. 14(18), pages 1-21, September.
    13. Sopitsuda Tongsopit & Sunee Moungchareon & Apinya Aksornkij & Tanai Potisat, . "Business Models and Financing Options for a Rapid Scale-up of Rooftop Solar Power Systems in Thailand," Chapters, in: Shigeru Kimura & Youngho Chang & Yanfei Li (ed.), Financing Renewable Energy Development in East Asia Summit Countries A Primer of Effective Policy Instruments, chapter 4, pages 79-136, Economic Research Institute for ASEAN and East Asia (ERIA).
    14. Oryani, Bahareh & Koo, Yoonmo & Rezania, Shahabaldin & Shafiee, Afsaneh, 2021. "Barriers to renewable energy technologies penetration: Perspective in Iran," Renewable Energy, Elsevier, vol. 174(C), pages 971-983.
    15. Bankel, Amanda & Mignon, Ingrid, 2022. "Solar business models from a firm perspective – an empirical study of the Swedish market," Energy Policy, Elsevier, vol. 166(C).
    16. Xiang Cai & Meiying Xie & Haijing Zhang & Zhenli Xu & Faxin Cheng, 2019. "Business Models of Distributed Solar Photovoltaic Power of China: The Business Model Canvas Perspective," Sustainability, MDPI, vol. 11(16), pages 1-27, August.
    17. Vallecha, Harshit & Bhattacharjee, Debraj & Osiri, John Kalu & Bhola, Prabha, 2021. "Evaluation of barriers and enablers through integrative multicriteria decision mapping: Developing sustainable community energy in Indian context," Renewable and Sustainable Energy Reviews, Elsevier, vol. 138(C).
    18. Dalia Streimikiene & Tomas Baležentis & Artiom Volkov & Mangirdas Morkūnas & Agnė Žičkienė & Justas Streimikis, 2021. "Barriers and Drivers of Renewable Energy Penetration in Rural Areas," Energies, MDPI, vol. 14(20), pages 1-28, October.
    19. Siripha Junlakarn & Phimsupha Kokchang & Kulyos Audomvongseree, 2022. "Drivers and Challenges of Peer-to-Peer Energy Trading Development in Thailand," Energies, MDPI, vol. 15(3), pages 1-25, February.
    20. Müller, Simon C. & Welpe, Isabell M., 2018. "Sharing electricity storage at the community level: An empirical analysis of potential business models and barriers," Energy Policy, Elsevier, vol. 118(C), pages 492-503.
    21. Rutovitz, Jay & Oliva H., Sebastian & McIntosh, Lawrence & Langham, Ed & Teske, Sven & Atherton, Alison & Kelly, Scott, 2018. "Local network credits and local electricity trading: Results of virtual trials and the policy implications," Energy Policy, Elsevier, vol. 120(C), pages 324-334.

    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:jsusta:v:15:y:2023:i:3:p:2233-:d:1046514. 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.