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Determining the optimal azimuth for solar-ready buildings: Simulating for maximising the economic value of solar PV installations in Lapland, Finland

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  • Shekar, Vinay
  • Abraham, Daniel
  • Caló, Antonio
  • Pongrácz, Eva

Abstract

This study investigates the impact of building orientation on the economic feasibility of residential rooftop photovoltaic installations in Arctic climatic conditions, aligning with the European Union's advocacy for region-specific 'solar-ready' buildings. The research uses a novel combination of 3-dimensional modelling, solar simulation, and comprehensive economic analysis, offering precise, location-specific recommendations for optimising solar PV installations in Arctic regions. The study demonstrates how orientation and discount rates significantly influence the system's economic viability. The economic analysis for solar PV installation orientations ranging from 0° to 359° and discount rates from 3 to 7% reveals grid parity in the Levelized Cost of Electricity and positive Net Present Value for all azimuths for discount rates in the 3%–6% range. Furthermore, results show favourable Discounted Payback Periods for azimuths in the 70°–270° range at a 3 % discount rate and in the 120°–200° range at a 5 % discount rate. The findings reveal that the optimal azimuth range for buildings should be considered before zoning municipal areas to maximise economic performance. Economic simulations indicate an optimal azimuth 156° for the region, deviating significantly from the recommended 172°. The article underscores the importance of region-specific optimisation over general guidelines, representing a key contribution to solar energy planning in Arctic conditions.

Suggested Citation

  • Shekar, Vinay & Abraham, Daniel & Caló, Antonio & Pongrácz, Eva, 2025. "Determining the optimal azimuth for solar-ready buildings: Simulating for maximising the economic value of solar PV installations in Lapland, Finland," Renewable Energy, Elsevier, vol. 241(C).
    • Handle: RePEc:eee:renene:v:241:y:2025:i:c:s0960148125000199
    DOI: 10.1016/j.renene.2025.122357
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    References listed on IDEAS

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    1. Shekar, Vinay & Caló, Antonio & Pongrácz, Eva, 2023. "Experiences from seasonal Arctic solar photovoltaics (PV) generation- An empirical data analysis from a research infrastructure in Northern Finland," Renewable Energy, Elsevier, vol. 217(C).
    2. Sattich, Thomas & Freeman, Duncan & Scholten, Daniel & Yan, Shaohua, 2021. "Renewable energy in EU-China relations: Policy interdependence and its geopolitical implications," Energy Policy, Elsevier, vol. 156(C).
    3. Leite, Nathalia Hidalgo & Guzman Lascano, Cindy Paola & Valente Morais, Hugo Gabriel & Pereira da Silva, Luiz Carlos, 2024. "Impact of the net-metering policies on solar photovoltaic investments for residential scale: A case study in Brazil," Renewable Energy, Elsevier, vol. 231(C).
    4. Seepana Praveenkumar & Aminjon Gulakhmadov & Abhinav Kumar & Murodbek Safaraliev & Xi Chen, 2022. "Comparative Analysis for a Solar Tracking Mechanism of Solar PV in Five Different Climatic Locations in South Indian States: A Techno-Economic Feasibility," Sustainability, MDPI, vol. 14(19), pages 1-22, September.
    5. Olatayo, Kunle Ibukun & Wichers, J. Harry & Stoker, Piet W., 2018. "Energy and economic performance of small wind energy systems under different climatic conditions of South Africa," Renewable and Sustainable Energy Reviews, Elsevier, vol. 98(C), pages 376-392.
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