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Mapping the geographic distribution of the economic viability of photovoltaic load displacement projects in SW USA

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  • Tomosk, Steve
  • Haysom, Joan E.
  • Hinzer, Karin
  • Schriemer, Henry
  • Wright, David

Abstract

While maps of solar irradiance are readily available, they do not represent the economic viability of a solar project in any particular location. This paper provides a financial analysis with different electricity tariffs and then maps the internal rate of return (IRR) of solar load displacement projects. We examine 25 locations in the southwestern USA and show that IRR maps differ substantially from irradiance maps. Our analysis includes 27 scenarios derived from the following combinations: three types of solar installations (concentrated photovoltaic (CPV), south-facing PV and PV oriented so as to optimize IRR); three project start dates (2016, 2018, 2020); and three price projections for grid-connected systems (optimistic, central, pessimistic). The variation of irradiance across these 25 locations is much lower than the variation of IRR. Direct normal irradiance is almost uncorrelated with the IRR from CPV projects, indicating that irradiance alone is a poor predictor of IRR. Tariff differences among the 25 locations, including time of use aspects, play a major role in determining economic viability and IRR varies considerably even within a single city. Orienting PV modules so as to optimize the IRR brings little benefit unless the optimized azimuth is greater than 20° west of south.

Suggested Citation

  • Tomosk, Steve & Haysom, Joan E. & Hinzer, Karin & Schriemer, Henry & Wright, David, 2017. "Mapping the geographic distribution of the economic viability of photovoltaic load displacement projects in SW USA," Renewable Energy, Elsevier, vol. 107(C), pages 101-112.
    • Handle: RePEc:eee:renene:v:107:y:2017:i:c:p:101-112
    DOI: 10.1016/j.renene.2017.01.049
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    References listed on IDEAS

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    1. Al Garni, Hassan Z. & Awasthi, Anjali & Wright, David, 2019. "Optimal orientation angles for maximizing energy yield for solar PV in Saudi Arabia," Renewable Energy, Elsevier, vol. 133(C), pages 538-550.
    2. Liu, Yujun & Yao, Ling & Jiang, Hou & Lu, Ning & Qin, Jun & Liu, Tang & Zhou, Chenghu, 2022. "Spatial estimation of the optimum PV tilt angles in China by incorporating ground with satellite data," Renewable Energy, Elsevier, vol. 189(C), pages 1249-1258.
    3. Paulo Antônio Xavier Furtado & Antônio Vanderley Herrero Sola, 2020. "Fuzzy Complex Proportional Assessment Applied in Location Selection for Installation of Photovoltaic Plants," Energies, MDPI, vol. 13(23), pages 1-20, November.
    4. 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.
    5. Luwei Ding & Zetian Zhang & Baiyi Li & Shengming Qi & Hengfeng Liu & Shuo Liu, 2024. "Feasibility Investigation of Geothermal Energy Heating System in Mining Area: Application of Mine Cooling and Aquifer Thermal Energy Exploitation Technique," Energies, MDPI, vol. 17(5), pages 1-17, March.
    6. Łukasz Augustowski & Piotr Kułyk, 2023. "The Economic Profitability of Photovoltaic Installations in Households in Poland from a New Policy Perspective," Energies, MDPI, vol. 16(22), pages 1-16, November.
    7. MacDougall, Hillary & Tomosk, Steve & Wright, David, 2018. "Geographic maps of the impact of government incentives on the economic viability of solar power," Renewable Energy, Elsevier, vol. 122(C), pages 497-506.

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