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An economic evaluation of photovoltaic grid connected systems (PVGCS) in Flanders for companies: a generic model

Author

Listed:
  • Audenaert, Amaryllis

    (Artesis Hogeschool Antwerpen, 2000 Antwerp, Belgium; Universiteit Antwerpen, Faculty of Applied Economics, 2000 Antwerp, Belgium)

  • De Boeck, Liesje

    (Universiteit Antwerpen, Faculty of Applied Economics, 2000 Antwerp, Belgium)

  • De Cleyn, Sven

    (Hogeschool-Universiteit Brussel (HUB), Belgium)

  • Lizin, Sebastien
  • Adam, Jean-Franois

    (Euroclear, 1210 Brussel)

Abstract

In this paper an economic evaluation of photovoltaic grid connected systems (PVGCS) for companies situated in Flanders is conducted by using a generic Excel model. The model is unique in that it includes the dimension of taxation. This inclusion is required, otherwise the fiscal benefit of using solar panels is not accounted for. The model uses the cash flow projection method. This technique allows the calculation of the following classical evaluation criteria: net present value, internal rate of return, payback period, discounted payback period, profitability index, yield unit cost, yield unit revenue and breakeven turnkey cost. Their outcome makes it possible to answer the question whether installing a PVGCS in Flanders is a responsible financial investment for companies. Furthermore, the paper estimates whether the corporate environment is ready for a subsidy legislation change. This change has recently been announced and as such it is possible to gauge whether the current market situation is profitable given future legislation.

Suggested Citation

  • Audenaert, Amaryllis & De Boeck, Liesje & De Cleyn, Sven & Lizin, Sebastien & Adam, Jean-Franois, 2010. "An economic evaluation of photovoltaic grid connected systems (PVGCS) in Flanders for companies: a generic model," Working Papers 2010/16, Hogeschool-Universiteit Brussel, Faculteit Economie en Management.
    • Handle: RePEc:hub:wpecon:201016
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    References listed on IDEAS

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    4. Olivier De Groote & Frank Verboven, 2016. "Subsidies and myopia in technology adoption: evidence from solar photovoltaic systems," Working Papers of Department of Economics, Leuven 547933, KU Leuven, Faculty of Economics and Business (FEB), Department of Economics, Leuven.
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    12. Sandy Rodrigues & Fábio Faria & Ashkan Ivaki & Nuno Cafôfo & Xiaoju Chen 5 & F. Morgado-Dias, 2016. "Tesla Powerwall in the United States and Portugal–A Comparative Analysis on the Use of Storage with Small Scale Photovoltaic Systems," International Journal of Technology and Engineering Studies, PROF.IR.DR.Mohid Jailani Mohd Nor, vol. 2(1), pages 5-12.
    13. Lizin, Sebastien & Leroy, Julie & Delvenne, Catherine & Dijk, Marc & De Schepper, Ellen & Van Passel, Steven, 2013. "A patent landscape analysis for organic photovoltaic solar cells: Identifying the technology's development phase," Renewable Energy, Elsevier, vol. 57(C), pages 5-11.
    14. Hee-Kwan Shin & Jae-Min Cho & Eul-Bum Lee, 2019. "Electrical Power Characteristics and Economic Analysis of Distributed Generation System Using Renewable Energy: Applied to Iron and Steel Plants," Sustainability, MDPI, vol. 11(22), pages 1-27, November.
    15. Yu-Cheol Jeong & Eul-Bum Lee & Douglas Alleman, 2019. "Reducing Voltage Volatility with Step Voltage Regulators: A Life-Cycle Cost Analysis of Korean Solar Photovoltaic Distributed Generation," Energies, MDPI, vol. 12(4), pages 1-16, February.
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