IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v14y2021i6p1666-d519112.html
   My bibliography  Save this article

A Financial Evaluation of a Multiple Inclination, Rooftop-Mounted, Photovoltaic System Where Structured Tariffs Apply: A Case Study of a South African Shopping Centre

Author

Listed:
  • Dirk Johan van Vuuren

    (Engineering Augmented Degree Programme, University of Pretoria, Pretoria 0002, South Africa)

  • Annlizé L. Marnewick

    (Postgraduate School of Engineering Management, University of Johannesburg, Johannesburg 2006, South Africa)

  • Jan Harm C. Pretorius

    (Postgraduate School of Engineering Management, University of Johannesburg, Johannesburg 2006, South Africa)

Abstract

Fundamental mathematical principles were applied to calculate the return on investment (ROI) of a multiple inclination, rooftop-mounted, photovoltaic (PV) system that is connected to a structured tariff network. Recent history has seen a disproportionate increase in electricity tariffs within South Africa, enabling an increase in the deployment rates of PV technologies. Given the inherent uncertainty associated with simulating the electricity yield of a PV system, it can become difficult to estimate the ROI in advance. This study contributes to existing knowledge by presenting a process for calculating the ROI of a case study rooftop-mounted PV system using mathematical first principles where structured tariffs apply. The PV modules were mounted to a curved roof structure, ranging from 9° towards a southerly direction to 10° towards a northerly direction. The research results indicate that since the PV system is located within the southern hemisphere, the ROI will increase when PV modules are orientated towards the northerly direction to attain a maximum of R0.0059/Wp/Day at 10°, and a minimum of R0.0025/Wp/Day at 9° towards the southerly direction in the winter season. Summer maximum ROI yielded an average of between R0.0050/Wp/Day and R0.0052/Wp/Day, irrespective of the angle of inclination of the PV modules. It was concluded that PV systems must be designed to favour winter electricity production for increased ROI where structured tariffs apply within a South African context.

Suggested Citation

  • Dirk Johan van Vuuren & Annlizé L. Marnewick & Jan Harm C. Pretorius, 2021. "A Financial Evaluation of a Multiple Inclination, Rooftop-Mounted, Photovoltaic System Where Structured Tariffs Apply: A Case Study of a South African Shopping Centre," Energies, MDPI, vol. 14(6), pages 1-26, March.
    • Handle: RePEc:gam:jeners:v:14:y:2021:i:6:p:1666-:d:519112
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/14/6/1666/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1996-1073/14/6/1666/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Crago, Christine Lasco & Chernyakhovskiy, Ilya, 2017. "Are policy incentives for solar power effective? Evidence from residential installations in the Northeast," Journal of Environmental Economics and Management, Elsevier, vol. 81(C), pages 132-151.
    2. Talavera, D.L. & Muñoz-Rodriguez, F.J. & Jimenez-Castillo, G. & Rus-Casas, C., 2019. "A new approach to sizing the photovoltaic generator in self-consumption systems based on cost–competitiveness, maximizing direct self-consumption," Renewable Energy, Elsevier, vol. 130(C), pages 1021-1035.
    3. Le Roux, W.G., 2016. "Optimum tilt and azimuth angles for fixed solar collectors in South Africa using measured data," Renewable Energy, Elsevier, vol. 96(PA), pages 603-612.
    4. Zoltan Corba & Bane Popadic & Dragan Milicevic & Boris Dumnic & Vladimir A. Katic, 2020. "A Long-Term Condition Monitoring and Performance Assessment of Grid Connected PV Power Plant with High Power Sizing Factor under Partial Shading Conditions," Energies, MDPI, vol. 13(18), pages 1-19, September.
    5. Walwyn, David Richard & Brent, Alan Colin, 2015. "Renewable energy gathers steam in South Africa," Renewable and Sustainable Energy Reviews, Elsevier, vol. 41(C), pages 390-401.
    6. Idris Al Siyabi & Arwa Al Mayasi & Aiman Al Shukaili & Sourav Khanna, 2021. "Effect of Soiling on Solar Photovoltaic Performance under Desert Climatic Conditions," Energies, MDPI, vol. 14(3), pages 1-18, January.
    7. Darghouth, Naïm R. & Barbose, Galen & Zuboy, Jarett & Gagnon, Pieter J. & Mills, Andrew D. & Bird, Lori, 2020. "Demand charge savings from solar PV and energy storage," Energy Policy, Elsevier, vol. 146(C).
    8. Jung, Jinho & Tyner, Wallace E., 2014. "Economic and policy analysis for solar PV systems in Indiana," Energy Policy, Elsevier, vol. 74(C), pages 123-133.
    9. Dirk Johan van Vuuren & Annlizé L. Marnewick & Jan Harm C. Pretorius, 2021. "Validation of a Simulation-Based Pre-Assessment Process for Solar Photovoltaic Technology Implemented on Rooftops of South African Shopping Centres," Sustainability, MDPI, vol. 13(5), pages 1-26, February.
    10. Dobrotkova, Zuzana & Surana, Kavita & Audinet, Pierre, 2018. "The price of solar energy: Comparing competitive auctions for utility-scale solar PV in developing countries," Energy Policy, Elsevier, vol. 118(C), pages 133-148.
    11. Sepúlveda-Mora, Sergio B. & Hegedus, Steven, 2021. "Making the case for time-of-use electric rates to boost the value of battery storage in commercial buildings with grid connected PV systems," Energy, Elsevier, vol. 218(C).
    12. Mayr, Dieter & Schmid, Erwin & Trollip, Hilton & Zeyringer, Marianne & Schmidt, Johannes, 2015. "The impact of residential photovoltaic power on electricity sales revenues in Cape Town, South Africa," Utilities Policy, Elsevier, vol. 36(C), pages 10-23.
    13. Xin-gang, Zhao & Yi-min, Xie, 2019. "The economic performance of industrial and commercial rooftop photovoltaic in China," Energy, Elsevier, vol. 187(C).
    14. Masini, Andrea & Menichetti, Emanuela, 2012. "The impact of behavioural factors in the renewable energy investment decision making process: Conceptual framework and empirical findings," Energy Policy, Elsevier, vol. 40(C), pages 28-38.
    15. van Vuuren, Dirk Johan & Marnewick, Annlizé & Pretorius, Jan Harm C., 2019. "A proposed simulation-based theoretical preconstruction process: The case of solar photovoltaic technology in South African shopping centres," Renewable and Sustainable Energy Reviews, Elsevier, vol. 113(C), pages 1-1.
    16. Monyei, C.G. & Adewumi, A.O., 2017. "Demand Side Management potentials for mitigating energy poverty in South Africa," Energy Policy, Elsevier, vol. 111(C), pages 298-311.
    17. Abdulsalam S. Alghamdi, 2019. "Potential for Rooftop-Mounted PV Power Generation to Meet Domestic Electrical Demand in Saudi Arabia: Case Study of a Villa in Jeddah," Energies, MDPI, vol. 12(23), pages 1-29, November.
    18. Andrea Masini & E. Menichetti, 2012. "The impact of behavioural factors in the renewable energy investment decision making process: Conceptual framework and empirical findings," Post-Print hal-00651706, HAL.
    19. Sener, Can & Fthenakis, Vasilis, 2014. "Energy policy and financing options to achieve solar energy grid penetration targets: Accounting for external costs," Renewable and Sustainable Energy Reviews, Elsevier, vol. 32(C), pages 854-868.
    20. Lipp, Judith, 2001. "Policy considerations for a sprouting UK green electricity market," Renewable Energy, Elsevier, vol. 24(1), pages 31-44.
    21. Balta-Ozkan, Nazmiye & Yildirim, Julide & Connor, Peter M., 2015. "Regional distribution of photovoltaic deployment in the UK and its determinants: A spatial econometric approach," Energy Economics, Elsevier, vol. 51(C), pages 417-429.
    22. Bianchini, Augusto & Gambuti, Michele & Pellegrini, Marco & Saccani, Cesare, 2016. "Performance analysis and economic assessment of different photovoltaic technologies based on experimental measurements," Renewable Energy, Elsevier, vol. 85(C), pages 1-11.
    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. Nima Narjabadifam & Mohammed Al-Saffar & Yongquan Zhang & Joseph Nofech & Asdrubal Cheng Cen & Hadia Awad & Michael Versteege & Mustafa Gül, 2022. "Framework for Mapping and Optimizing the Solar Rooftop Potential of Buildings in Urban Systems," Energies, MDPI, vol. 15(5), pages 1-32, February.

    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. Dirk Johan van Vuuren & Annlizé L. Marnewick & Jan Harm C. Pretorius, 2021. "Validation of a Simulation-Based Pre-Assessment Process for Solar Photovoltaic Technology Implemented on Rooftops of South African Shopping Centres," Sustainability, MDPI, vol. 13(5), pages 1-26, February.
    2. García-Álvarez, María Teresa & Cabeza-García, Laura & Soares, Isabel, 2018. "Assessment of energy policies to promote photovoltaic generation in the European Union," Energy, Elsevier, vol. 151(C), pages 864-874.
    3. Jenner, Steffen & Groba, Felix & Indvik, Joe, 2013. "Assessing the strength and effectiveness of renewable electricity feed-in tariffs in European Union countries," Energy Policy, Elsevier, vol. 52(C), pages 385-401.
    4. Zheng, Xiaotian & Zhou, Youcheng & Iqbal, Sajid, 2022. "Working capital management of SMEs in COVID-19: role of managerial personality traits and overconfidence behavior," Economic Analysis and Policy, Elsevier, vol. 76(C), pages 439-451.
    5. 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.
    6. Zhang, Xinhua & Yang, Hongming & Yu, Qian & Qiu, Jing & Zhang, Yongxi, 2018. "Analysis of carbon-abatement investment for thermal power market in carbon-dispatching mode and policy recommendations," Energy, Elsevier, vol. 149(C), pages 954-966.
    7. La Monaca, Sarah & Ryan, Lisa, 2017. "Solar PV where the sun doesn’t shine: Estimating the economic impacts of support schemes for residential PV with detailed net demand profiling," Energy Policy, Elsevier, vol. 108(C), pages 731-741.
    8. Shrimali, Gireesh & Nelson, David & Goel, Shobhit & Konda, Charith & Kumar, Raj, 2013. "Renewable deployment in India: Financing costs and implications for policy," Energy Policy, Elsevier, vol. 62(C), pages 28-43.
    9. Lim, Xin-Le & Lam, Wei-Haur, 2014. "Public Acceptance of Marine Renewable Energy in Malaysia," Energy Policy, Elsevier, vol. 65(C), pages 16-26.
    10. Leszek Dziawgo, 2021. "Energy Sectors on Capital Market – Financing the Process “Towards Sustainability”," European Research Studies Journal, European Research Studies Journal, vol. 0(2B), pages 938-955.
    11. John Foster & Liam Wagner, 2014. "International experience with transformations in electricity markets: A Short Literature Review," Energy Economics and Management Group Working Papers 2-2014, School of Economics, University of Queensland, Australia.
    12. Gliedt, Travis & Hoicka, Christina E., 2015. "Energy upgrades as financial or strategic investment? Energy Star property owners and managers improving building energy performance," Applied Energy, Elsevier, vol. 147(C), pages 430-443.
    13. Muhammad Danish & Saqib Ali & Muhammad Azeem Ahmad & Hasan Zahid, 2019. "The Influencing Factors on Choice Behavior Regarding Green Electronic Products: Based on the Green Perceived Value Model," Economies, MDPI, vol. 7(4), pages 1-18, October.
    14. Ilbahar, Esra & Kahraman, Cengiz & Cebi, Selcuk, 2022. "Risk assessment of renewable energy investments: A modified failure mode and effect analysis based on prospect theory and intuitionistic fuzzy AHP," Energy, Elsevier, vol. 239(PA).
    15. Anna Kowalska-Pyzalska, 2018. "An Empirical Analysis of Green Electricity Adoption Among Residential Consumers in Poland," Sustainability, MDPI, vol. 10(7), pages 1-17, July.
    16. Ekaterina V. Nezhnikova & Irina V. Okhremenko & Oksana V. Papelniuk, 2018. "Investigation of the Features of Investment in the Development of Renewable Energy Sources: Main Consumers, Legal Regulation, Equipment, Rates and Delivery," International Journal of Energy Economics and Policy, Econjournals, vol. 8(4), pages 178-186.
    17. Oleg Kucher & Donald Lacombe & Sean T. Davidson, 2021. "The Residential Solar PV in the Mid-Atlantic: A Spatial Panel Approach," International Regional Science Review, , vol. 44(2), pages 262-288, March.
    18. Mazzucato, Mariana & Semieniuk, Gregor, 2018. "Financing renewable energy: Who is financing what and why it matters," Technological Forecasting and Social Change, Elsevier, vol. 127(C), pages 8-22.
    19. Bean, Patrick & Blazquez, Jorge & Nezamuddin, Nora, 2017. "Assessing the cost of renewable energy policy options – A Spanish wind case study," Renewable Energy, Elsevier, vol. 103(C), pages 180-186.
    20. Abreu, Mônica Cavalcanti Sá de & Webb, Kernaghan & Araújo, Francisco Sávio Maurício & Cavalcante, Jaime Phasquinel Lopes, 2021. "From “business as usual” to tackling climate change: Exploring factors affecting low-carbon decision-making in the canadian oil and gas sector," Energy Policy, Elsevier, vol. 148(PA).

    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:1666-:d:519112. 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.