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An economic approach to photovoltaic microgeneration

In: Handbook on the Economics of Renewable Energy

Author

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  • Pere Mir-Artigues

Abstract

This chapter addresses the socioeconomic dimension of residential micro-generation, illustrating it with an empirical focus on Spain. This is a possibility which was created by the enormous reduction in the prices of photovoltaic equipment which started in 2008. The chapter provides a general classification of PV plant, identifies the six factors that influence the design and management of a residential plant (illustrated with a real case) and defines and discusses the three criteria used for the economic evaluation of micro-generation, namely, the rate of return, the avoided cost and the influence of some heuristics (such as social imitation and sufficient satisfaction) that trigger it.

Suggested Citation

  • Pere Mir-Artigues, 2023. "An economic approach to photovoltaic microgeneration," Chapters, in: Pablo del Río & Mario Ragwitz (ed.), Handbook on the Economics of Renewable Energy, chapter 10, pages 206-230, Edward Elgar Publishing.
    • Handle: RePEc:elg:eechap:20354_10
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    File URL: https://www.elgaronline.com/doi/10.4337/9781800379022.00018
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