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Analysis of the economic viability of a photovoltaic generation project applied to the Brazilian housing program “Minha Casa Minha Vida”

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  • Vale, A.M.
  • Felix, D.G.
  • Fortes, M.Z.
  • Borba, B.S.M.C.
  • Dias, B.H.
  • Santelli, B.S.

Abstract

In Brazil, distributed grid-connected solar photovoltaic (PV) plays an increasingly role due to advances in PV technology, combined with decreasing capital costs and subsidies. Therefore, this paper aims conduct an economic analysis of two projects in “Minha Casa Minha Vida” (MCMV) governmental program, one in the state São Paulo and the other in the state of Piauí, using distributed photovoltaic power generation. The MCMV is the Brazilian government's housing program that gives access to home ownership to low-income Brazilians in urban and rural areas. Such analysis was undertaken by the evaluation of the net present value (NPV) and internal rate of return (IRR), considering a Minimum Attractive Rate of Return (MARR) and by varying the annual growth of energy tariffs over 25 years of operation, which represents the expected lifespan of solar panels. These two cities were chosen because their federal states have different actions with respect to tax matters. Such difference, in particular, will be examined and explored in this article. Results show that even though Piauí presents a higher average solar radiation than São Paulo, the impact of ICMS exemption guarantees an advantage of investing in São Paulo.

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  • Vale, A.M. & Felix, D.G. & Fortes, M.Z. & Borba, B.S.M.C. & Dias, B.H. & Santelli, B.S., 2017. "Analysis of the economic viability of a photovoltaic generation project applied to the Brazilian housing program “Minha Casa Minha Vida”," Energy Policy, Elsevier, vol. 108(C), pages 292-298.
    • Handle: RePEc:eee:enepol:v:108:y:2017:i:c:p:292-298
    DOI: 10.1016/j.enpol.2017.06.001
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    3. de Doile, Gabriel Nasser Doyle & Rotella Junior, Paulo & Rocha, Luiz Célio Souza & Janda, Karel & Aquila, Giancarlo & Peruchi, Rogério Santana & Balestrassi, Pedro Paulo, 2022. "Feasibility of hybrid wind and photovoltaic distributed generation and battery energy storage systems under techno-economic regulation," Renewable Energy, Elsevier, vol. 195(C), pages 1310-1323.
    4. 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.
    5. Rômulo de Oliveira Azevêdo & Paulo Rotela Junior & Luiz Célio Souza Rocha & Gianfranco Chicco & Giancarlo Aquila & Rogério Santana Peruchi, 2020. "Identification and Analysis of Impact Factors on the Economic Feasibility of Photovoltaic Energy Investments," Sustainability, MDPI, vol. 12(17), pages 1-40, September.
    6. de Oliveira Pinto Coelho, Eden & Aquila, Giancarlo & Bonatto, Benedito Donizeti & Balestrassi, Pedro Paulo & de Oliveira Pamplona, Edson & Nakamura, Wilson Toshiro, 2021. "Regulatory impact of photovoltaic prosumer policies in Brazil based on a financial risk analysis," Utilities Policy, Elsevier, vol. 70(C).
    7. Bruno Moreno Rodrigo de Freitas, 2020. "Quantifying the effect of regulated volumetric electriciy tariffs on residential PV adoption under net metering scheme," Working Papers hal-02976874, HAL.
    8. Vilaça Gomes, P. & Knak Neto, N. & Carvalho, L. & Sumaili, J. & Saraiva, J.T. & Dias, B.H. & Miranda, V. & Souza, S.M., 2018. "Technical-economic analysis for the integration of PV systems in Brazil considering policy and regulatory issues," Energy Policy, Elsevier, vol. 115(C), pages 199-206.
    9. Gustavo Leite Gonçalves & Raphael Abrahão & Paulo Rotella Junior & Luiz Célio Souza Rocha, 2022. "Economic Feasibility of Conventional and Building-Integrated Photovoltaics Implementation in Brazil," Energies, MDPI, vol. 15(18), pages 1-16, September.
    10. Felipe Barroco Fontes Cunha & Maria Cândida Arrais de Miranda Mousinho & Luciana Carvalho & Fábio Fernandes & Celso Castro & Marcelo Santana Silva & Ednildo Andrade Torres, 2021. "Renewable energy planning policy for the reduction of poverty in Brazil: lessons from Juazeiro," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(7), pages 9792-9810, July.
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