IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v14y2022i22p15060-d972270.html
   My bibliography  Save this article

Energy Business Initiatives for Grid-Connected Solar Photovoltaic Systems: An Overview

Author

Listed:
  • Nicholas Mukisa

    (National Renewable Energy Platform, Ministry of Energy and Mineral Development, Kampala P.O. Box 7270, Uganda
    Department of Energy Science and Technology, Makerere University Business School, Kampala P.O. Box 1337, Uganda)

  • Ramon Zamora

    (School of Engineering, Computer and Mathematical Sciences, Auckland University of Technology, Auckland 1010, New Zealand)

  • Tek Tjing Lie

    (School of Engineering, Computer and Mathematical Sciences, Auckland University of Technology, Auckland 1010, New Zealand)

Abstract

An overview of the adoption extent of the energy business models around the world was undertaken by considering both the developed and developing countries, with the emphasis on the customer-side renewable energy business models. The developed countries have widely adopted energy business initiatives to advance the distributed generation of electricity from renewable energy sources, while developing countries are struggling and/or have failed to record significant success. Additionally, developing countries are shifting from customer-owned energy business initiatives to the community-shared energy business initiatives to enhance prosumer-generated energy self-consumption. Furthermore, the existent billing schemes as well as the store-on grid scheme applicable to the energy business initiatives are discussed in this paper. The virtual net metering scheme category is the main billing scheme used for the community-shared energy business initiatives. In addition, this study depicts how the store-on grid scheme addresses the shortfalls of the existent billing schemes. Finally, the study gives policy recommendations that the decision makers in the developing countries could use as a foundation to foster the solar PV technology deployment through energy business models, especially by the adoption of the store-on grid scheme as the billing scheme.

Suggested Citation

  • Nicholas Mukisa & Ramon Zamora & Tek Tjing Lie, 2022. "Energy Business Initiatives for Grid-Connected Solar Photovoltaic Systems: An Overview," Sustainability, MDPI, vol. 14(22), pages 1-26, November.
  • Handle: RePEc:gam:jsusta:v:14:y:2022:i:22:p:15060-:d:972270
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/14/22/15060/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/2071-1050/14/22/15060/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Saidmamatov Olimjon & Salaev Sanaatbek & Eshchanov Bahtiyor, 2015. "Challenges and Optimization Strategy for Feed-In Tariffs of Renewable Energy in CIS Countries," Baltic Journal of Real Estate Economics and Construction Management, Sciendo, vol. 3(1), pages 6-13, December.
    2. Hoffman, Steven M. & High-Pippert, Angela, 2010. "From private lives to collective action: Recruitment and participation incentives for a community energy program," Energy Policy, Elsevier, vol. 38(12), pages 7567-7574, December.
    3. Nolden, Colin, 2013. "Governing community energy—Feed-in tariffs and the development of community wind energy schemes in the United Kingdom and Germany," Energy Policy, Elsevier, vol. 63(C), pages 543-552.
    4. 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.
    5. Couture, Toby & Gagnon, Yves, 2010. "An analysis of feed-in tariff remuneration models: Implications for renewable energy investment," Energy Policy, Elsevier, vol. 38(2), pages 955-965, February.
    6. 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.
    7. Peters, Michael & Fudge, Shane & High-Pippert, Angela & Carragher, Vincent & Hoffman, Steven M., 2018. "Community solar initiatives in the United States of America: Comparisons with – and lessons for – the UK and other European countries," Energy Policy, Elsevier, vol. 121(C), pages 355-364.
    8. Karakaya, Emrah & Nuur, Cali & Hidalgo, Antonio, 2016. "Business model challenge: Lessons from a local solar company," Renewable Energy, Elsevier, vol. 85(C), pages 1026-1035.
    9. Patrick Devine-Wright, 2019. "Community versus local energy in a context of climate emergency," Nature Energy, Nature, vol. 4(11), pages 894-896, November.
    10. 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.
    11. Seel, Joachim & Barbose, Galen L. & Wiser, Ryan H., 2014. "An analysis of residential PV system price differences between the United States and Germany," Energy Policy, Elsevier, vol. 69(C), pages 216-226.
    12. Patricia Milanés-Montero & Alberto Arroyo-Farrona & Esteban Pérez-Calderón, 2018. "Assessment of the Influence of Feed-In Tariffs on the Profitability of European Photovoltaic Companies," Sustainability, MDPI, vol. 10(10), pages 1-16, September.
    13. Nóra Hegedűsné Baranyai & Henrik Zsiborács & András Vincze & Nóra Rodek & Martina Makai & Gábor Pintér, 2021. "Correlation Analysis of the Spread of Household-Sized Photovoltaic Power Plants and Various District Indicators: A Case Study," Sustainability, MDPI, vol. 13(2), pages 1-24, January.
    14. Cole, Matthew A. & Elliott, Robert J.R. & Occhiali, Giovanni & Strobl, Eric, 2018. "Power outages and firm performance in Sub-Saharan Africa," Journal of Development Economics, Elsevier, vol. 134(C), pages 150-159.
    15. Washburn, C. & Pablo-Romero, M., 2019. "Measures to promote renewable energies for electricity generation in Latin American countries," Energy Policy, Elsevier, vol. 128(C), pages 212-222.
    16. López Prol, Javier & Steininger, Karl W., 2017. "Photovoltaic self-consumption regulation in Spain: Profitability analysis and alternative regulation schemes," Energy Policy, Elsevier, vol. 108(C), pages 742-754.
    17. Richter, Mario, 2013. "Business model innovation for sustainable energy: German utilities and renewable energy," Energy Policy, Elsevier, vol. 62(C), pages 1226-1237.
    18. Soto, Esteban A. & Bosman, Lisa B. & Wollega, Ebisa & Leon-Salas, Walter D., 2021. "Peer-to-peer energy trading: A review of the literature," Applied Energy, Elsevier, vol. 283(C).
    19. Yael Parag & Benjamin K. Sovacool, 2016. "Electricity market design for the prosumer era," Nature Energy, Nature, vol. 1(4), pages 1-6, April.
    20. Stefano Moroni & Valentina Antoniucci & Adriano Bisello, 2019. "Local Energy Communities and Distributed Generation: Contrasting Perspectives, and Inevitable Policy Trade-Offs, beyond the Apparent Global Consensus," Sustainability, MDPI, vol. 11(12), pages 1-16, June.
    21. Karneyeva, Yuliya & Wüstenhagen, Rolf, 2017. "Solar feed-in tariffs in a post-grid parity world: The role of risk, investor diversity and business models," Energy Policy, Elsevier, vol. 106(C), pages 445-456.
    22. Suntiti Yoomak & Theerasak Patcharoen & Atthapol Ngaopitakkul, 2019. "Performance and Economic Evaluation of Solar Rooftop Systems in Different Regions of Thailand," Sustainability, MDPI, vol. 11(23), pages 1-20, November.
    23. Hughes, Larry & Bell, Jeff, 2006. "Compensating customer-generators: a taxonomy describing methods of compensating customer-generators for electricity supplied to the grid," Energy Policy, Elsevier, vol. 34(13), pages 1532-1539, September.
    24. Burger, Scott P. & Luke, Max, 2017. "Business models for distributed energy resources: A review and empirical analysis," Energy Policy, Elsevier, vol. 109(C), pages 230-248.
    25. Bomberg, Elizabeth & McEwen, Nicola, 2012. "Mobilizing community energy," Energy Policy, Elsevier, vol. 51(C), pages 435-444.
    26. Mukisa, Nicholas & Zamora, Ramon & Lie, Tek Tjing, 2021. "Viability of the store-on Grid Scheme model for grid-tied rooftop solar photovoltaic systems in Sub-Saharan African countries," Renewable Energy, Elsevier, vol. 178(C), pages 845-863.
    27. Barbosa, Luciana & Ferrão, Paulo & Rodrigues, Artur & Sardinha, Alberto, 2018. "Feed-in tariffs with minimum price guarantees and regulatory uncertainty," Energy Economics, Elsevier, vol. 72(C), pages 517-541.
    28. Hess, David J. & Lee, Dasom, 2020. "Energy decentralization in California and New York: Conflicts in the politics of shared solar and community choice," Renewable and Sustainable Energy Reviews, Elsevier, vol. 121(C).
    29. Amollo Ambole & Kweku Koranteng & Peris Njoroge & Douglas Logedi Luhangala, 2021. "A Review of Energy Communities in Sub-Saharan Africa as a Transition Pathway to Energy Democracy," Sustainability, MDPI, vol. 13(4), pages 1-19, February.
    30. Jacobs, David & Marzolf, Natacha & Paredes, Juan Roberto & Rickerson, Wilson & Flynn, Hilary & Becker-Birck, Christina & Solano-Peralta, Mauricio, 2013. "Analysis of renewable energy incentives in the Latin America and Caribbean region: The feed-in tariff case," Energy Policy, Elsevier, vol. 60(C), pages 601-610.
    31. Trimble,Christopher Philip & Kojima,Masami & Perez Arroyo,Ines & Mohammadzadeh,Farah, 2016. "Financial viability of electricity sectors in Sub-Saharan Africa : quasi-fiscal deficits and hidden costs," Policy Research Working Paper Series 7788, The World Bank.
    32. Assouline, Dan & Mohajeri, Nahid & Scartezzini, Jean-Louis, 2018. "Large-scale rooftop solar photovoltaic technical potential estimation using Random Forests," Applied Energy, Elsevier, vol. 217(C), pages 189-211.
    33. Bódis, Katalin & Kougias, Ioannis & Jäger-Waldau, Arnulf & Taylor, Nigel & Szabó, Sándor, 2019. "A high-resolution geospatial assessment of the rooftop solar photovoltaic potential in the European Union," Renewable and Sustainable Energy Reviews, Elsevier, vol. 114(C), pages 1-1.
    34. Zhang, Sufang, 2016. "Innovative business models and financing mechanisms for distributed solar PV (DSPV) deployment in China," Energy Policy, Elsevier, vol. 95(C), pages 458-467.
    35. 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.
    36. Haar, Lawrence, 2021. "The competitive disadvantages facing British assetless electricity retailers," Energy Policy, Elsevier, vol. 155(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. Fadhil Khadoum Alhousni & Firas Basim Ismail Alnaimi & Paul C. Okonkwo & Ikram Ben Belgacem & Hassan Mohamed & El Manaa Barhoumi, 2023. "Photovoltaic Power Prediction Using Analytical Models and Homer-Pro: Investigation of Results Reliability," Sustainability, MDPI, vol. 15(11), pages 1-13, May.

    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. Mukisa, Nicholas & Zamora, Ramon & Lie, Tek Tjing, 2021. "Store-on grid scheme model for grid-tied solar photovoltaic systems for industrial sector application: Benefits analysis," Renewable Energy, Elsevier, vol. 171(C), pages 1257-1275.
    2. 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.
    3. Rövekamp, Patrick & Schöpf, Michael & Wagon, Felix & Weibelzahl, Martin & Fridgen, Gilbert, 2021. "Renewable electricity business models in a post feed-in tariff era," Energy, Elsevier, vol. 216(C).
    4. 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.
    5. Moritz Ehrtmann & Lars Holstenkamp & Timon Becker, 2021. "Regional Electricity Models for Community Energy in Germany: The Role of Governance Structures," Sustainability, MDPI, vol. 13(4), pages 1-24, February.
    6. 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).
    7. Michael Hamwi & Iban Lizarralde, 2019. "Demand-side management and renewable energy business models for energy transition A systematic review," Post-Print hal-02448505, HAL.
    8. Li, Changsheng & Shen, Bo, 2019. "Accelerating renewable energy electrification and rural economic development with an innovative business model: A case study in China," Energy Policy, Elsevier, vol. 127(C), pages 280-286.
    9. Burger, Scott P. & Luke, Max, 2017. "Business models for distributed energy resources: A review and empirical analysis," Energy Policy, Elsevier, vol. 109(C), pages 230-248.
    10. 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).
    11. 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.
    12. F.G. Reis, Inês & Gonçalves, Ivo & A.R. Lopes, Marta & Henggeler Antunes, Carlos, 2021. "Business models for energy communities: A review of key issues and trends," Renewable and Sustainable Energy Reviews, Elsevier, vol. 144(C).
    13. Mukisa, Nicholas & Zamora, Ramon & Lie, Tek Tjing, 2021. "Viability of the store-on Grid Scheme model for grid-tied rooftop solar photovoltaic systems in Sub-Saharan African countries," Renewable Energy, Elsevier, vol. 178(C), pages 845-863.
    14. Maarten Wolsink, 2020. "Framing in Renewable Energy Policies: A Glossary," Energies, MDPI, vol. 13(11), pages 1-31, June.
    15. Nuñez-Jimenez, Alejandro & Mehta, Prakhar & Griego, Danielle, 2023. "Let it grow: How community solar policy can increase PV adoption in cities," Energy Policy, Elsevier, vol. 175(C).
    16. Barroco, Jose & Herrera, Maria, 2019. "Clearing barriers to project finance for renewable energy in developing countries: A Philippines case study," Energy Policy, Elsevier, vol. 135(C).
    17. 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).
    18. Frederik Plewnia, 2019. "The Energy System and the Sharing Economy: Interfaces and Overlaps and What to Learn from Them," Energies, MDPI, vol. 12(3), pages 1-17, January.
    19. Busch, Henner & Ruggiero, Salvatore & Isakovic, Aljosa & Hansen, Teis, 2021. "Policy challenges to community energy in the EU: A systematic review of the scientific literature," Renewable and Sustainable Energy Reviews, Elsevier, vol. 151(C).
    20. Beau Warbroek & Thomas Hoppe, 2017. "Modes of Governing and Policy of Local and Regional Governments Supporting Local Low-Carbon Energy Initiatives; Exploring the Cases of the Dutch Regions of Overijssel and Fryslân," Sustainability, MDPI, vol. 9(1), pages 1-36, January.

    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:14:y:2022:i:22:p:15060-:d:972270. 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.