IDEAS home Printed from https://ideas.repec.org/a/eee/rensus/v11y2007i3p447-466.html
   My bibliography  Save this article

Tables for the estimation of the internal rate of return of photovoltaic grid-connected systems

Author

Listed:
  • Talavera, D.L.
  • Nofuentes, G.
  • Aguilera, J.
  • Fuentes, M.

Abstract

A continuous decrease trend in PV costs together with a wide variety of supporting measures have turned photovoltaic grid-connected systems (PVGCS) into a profitable investment when some economic conditions are met. The internal rate of return (IRR) is a meaningful parameter for prospective owners of these PV systems. Nevertheless, this parameter has to be estimated by means of non-analytical methods. This paper presents some easy-to-use tables addressed to estimate the IRR avoiding cumbersome calculations, which is an attractive feature for owners, marketers and designers. Firstly, current and near-term costs of PVGCS are reviewed, together with some financial incentives available at present. This introduces the economic scenario, where the tables are to be used. A short introduction to the economic analysis of these systems provides a solid ground to eventually present the tables intended to the estimation of the IRR. Lastly, three examples demonstrate the use of the tables.

Suggested Citation

  • Talavera, D.L. & Nofuentes, G. & Aguilera, J. & Fuentes, M., 2007. "Tables for the estimation of the internal rate of return of photovoltaic grid-connected systems," Renewable and Sustainable Energy Reviews, Elsevier, vol. 11(3), pages 447-466, April.
    • Handle: RePEc:eee:rensus:v:11:y:2007:i:3:p:447-466
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1364-0321(05)00046-8
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Jäger-Waldau, Arnulf & Ossenbrink, Heinz, 2004. "Progress of electricity from biomass, wind and photovoltaics in the European Union," Renewable and Sustainable Energy Reviews, Elsevier, vol. 8(2), pages 157-182, April.
    2. Haas, Reinhard, 2003. "Market deployment strategies for photovoltaics: an international review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 7(4), pages 271-315, August.
    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. Girard, A. & Gago, E.J. & Ordoñez, J. & Muneer, T., 2016. "Spain's energy outlook: A review of PV potential and energy export," Renewable Energy, Elsevier, vol. 86(C), pages 703-715.
    2. Ibrahim, Adnan & Othman, Mohd Yusof & Ruslan, Mohd Hafidz & Mat, Sohif & Sopian, Kamaruzzaman, 2011. "Recent advances in flat plate photovoltaic/thermal (PV/T) solar collectors," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(1), pages 352-365, January.
    3. Moosavian, S.M. & Rahim, N.A. & Selvaraj, J. & Solangi, K.H., 2013. "Energy policy to promote photovoltaic generation," Renewable and Sustainable Energy Reviews, Elsevier, vol. 25(C), pages 44-58.
    4. Talavera, D.L. & Nofuentes, G. & Aguilera, J., 2010. "The internal rate of return of photovoltaic grid-connected systems: A comprehensive sensitivity analysis," Renewable Energy, Elsevier, vol. 35(1), pages 101-111.
    5. Lorenzo, C. & Almeida, R.H. & Martínez-Núñez, M. & Narvarte, L. & Carrasco, L.M., 2018. "Economic assessment of large power photovoltaic irrigation systems in the ECOWAS region," Energy, Elsevier, vol. 155(C), pages 992-1003.
    6. Zhou, Xinping & Yang, Jiakuan & Wang, Fen & Xiao, Bo, 2009. "Economic analysis of power generation from floating solar chimney power plant," Renewable and Sustainable Energy Reviews, Elsevier, vol. 13(4), pages 736-749, May.
    7. Heras-Saizarbitoria, Iñaki & Cilleruelo, Ernesto & Zamanillo, Ibon, 2011. "Public acceptance of renewables and the media: an analysis of the Spanish PV solar experience," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(9), pages 4685-4696.
    8. Yunqi Zhao & Jing Xiang & Jiaming Xu & Jinying Li & Ning Zhang, 2019. "Study on the Comprehensive Benefit Evaluation of Transnational Power Networking Projects Based on Multi-Project Stakeholder Perspectives," Energies, MDPI, vol. 12(2), pages 1-21, January.
    9. Zografidou, Eleni & Petridis, Konstantinos & Petridis, Nikolaos E. & Arabatzis, Garyfallos, 2017. "A financial approach to renewable energy production in Greece using goal programming," Renewable Energy, Elsevier, vol. 108(C), pages 37-51.
    10. Makena Coffman & Sherilyn Wee & Carl Bonham & Germaine Salim, 2013. "A Policy Analysis of Hawaii�s Solar Tax Credit Incentive," Working Papers 2013-11, University of Hawaii Economic Research Organization, University of Hawaii at Manoa.
    11. Coffman, Makena & Wee, Sherilyn & Bonham, Carl & Salim, Germaine, 2016. "A policy analysis of Hawaii's solar tax credit," Renewable Energy, Elsevier, vol. 85(C), pages 1036-1043.
    12. Focacci, Antonio, 2009. "Residential plants investment appraisal subsequent to the new supporting photovoltaic economic mechanism in Italy," Renewable and Sustainable Energy Reviews, Elsevier, vol. 13(9), pages 2710-2715, December.
    13. de la Hoz, Jordi & Boix, Oriol & Martín, Helena & Martins, Blanca & Graells, Moisès, 2010. "Promotion of grid-connected photovoltaic systems in Spain: Performance analysis of the period 1998-2008," Renewable and Sustainable Energy Reviews, Elsevier, vol. 14(9), pages 2547-2563, December.
    14. Faisal Nawab & Ag Sufiyan Abd Hamid & Muhammad Arif & Tufial A. Khan & Amir Naveed & Muhammad Sadiq & Sahibzada Imad Ud din & Adnan Ibrahim, 2022. "Solar–Biogas Microgrid: A Strategy for the Sustainable Development of Rural Communities in Pakistan," Sustainability, MDPI, vol. 14(18), pages 1-15, September.
    15. Parker, Paul, 2008. "Residential solar photovoltaic market stimulation: Japanese and Australian lessons for Canada," Renewable and Sustainable Energy Reviews, Elsevier, vol. 12(7), pages 1944-1958, September.

    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. Iacobescu, Flavius & Badescu, Viorel, 2012. "The potential of the local administration as driving force for the implementation of the National PV systems Strategy in Romania," Renewable Energy, Elsevier, vol. 38(1), pages 117-125.
    2. Mirzahosseini, Alireza Hajiseyed & Taheri, Taraneh, 2012. "Environmental, technical and financial feasibility study of solar power plants by RETScreen, according to the targeting of energy subsidies in Iran," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(5), pages 2806-2811.
    3. Papadopoulos, A.M. & Glinou, G.L. & Papachristos, D.Α., 2008. "Developments in the utilisation of wind energy in Greece," Renewable Energy, Elsevier, vol. 33(1), pages 105-110.
    4. Krystel K. Castillo-Villar, 2014. "Metaheuristic Algorithms Applied to Bioenergy Supply Chain Problems: Theory, Review, Challenges, and Future," Energies, MDPI, vol. 7(11), pages 1-33, November.
    5. van Alphen, Klaas & Kunz, Huden S. & Hekkert, Marko P., 2008. "Policy measures to promote the widespread utilization of renewable energy technologies for electricity generation in the Maldives," Renewable and Sustainable Energy Reviews, Elsevier, vol. 12(7), pages 1959-1973, September.
    6. George, Mel & Banerjee, Rangan, 2011. "A methodology for analysis of impacts of grid integration of renewable energy," Energy Policy, Elsevier, vol. 39(3), pages 1265-1276, March.
    7. Welsch, Heinz & Kühling, Jan, 2009. "Determinants of pro-environmental consumption: The role of reference groups and routine behavior," Ecological Economics, Elsevier, vol. 69(1), pages 166-176, November.
    8. Rentizelas, Athanasios A. & Tolis, Athanasios J. & Tatsiopoulos, Ilias P., 2009. "Logistics issues of biomass: The storage problem and the multi-biomass supply chain," Renewable and Sustainable Energy Reviews, Elsevier, vol. 13(4), pages 887-894, May.
    9. Chow, T.T. & Fong, K.F. & Chan, A.L.S. & Lin, Z., 2006. "Potential application of a centralized solar water-heating system for a high-rise residential building in Hong Kong," Applied Energy, Elsevier, vol. 83(1), pages 42-54, January.
    10. Heo, Eunnyeong & Kim, Jinsoo & Boo, Kyung-Jin, 2010. "Analysis of the assessment factors for renewable energy dissemination program evaluation using fuzzy AHP," Renewable and Sustainable Energy Reviews, Elsevier, vol. 14(8), pages 2214-2220, October.
    11. Jenkins, D.P., 2010. "The value of retrofitting carbon-saving measures into fuel poor social housing," Energy Policy, Elsevier, vol. 38(2), pages 832-839, February.
    12. Victoria Kihlström & Jörgen Elbe, 2021. "Constructing Markets for Solar Energy—A Review of Literature about Market Barriers and Government Responses," Sustainability, MDPI, vol. 13(6), pages 1-20, March.
    13. Chaurey, Akanksha & Kandpal, Tara Chandra, 2010. "Assessment and evaluation of PV based decentralized rural electrification: An overview," Renewable and Sustainable Energy Reviews, Elsevier, vol. 14(8), pages 2266-2278, October.
    14. Strupeit, Lars & Neij, Lena, 2017. "Cost dynamics in the deployment of photovoltaics: Insights from the German market for building-sited systems," Renewable and Sustainable Energy Reviews, Elsevier, vol. 69(C), pages 948-960.
    15. Bojic, Milorad & Blagojevic, Mirko, 2006. "Photovoltaic electricity production of a grid-connected urban house in Serbia," Energy Policy, Elsevier, vol. 34(17), pages 2941-2948, November.
    16. Taylor, Margaret, 2008. "Beyond technology-push and demand-pull: Lessons from California's solar policy," Energy Economics, Elsevier, vol. 30(6), pages 2829-2854, November.
    17. Hee, W.J. & Alghoul, M.A. & Bakhtyar, B. & Elayeb, OmKalthum & Shameri, M.A. & Alrubaih, M.S. & Sopian, K., 2015. "The role of window glazing on daylighting and energy saving in buildings," Renewable and Sustainable Energy Reviews, Elsevier, vol. 42(C), pages 323-343.
    18. Georgilakis, Pavlos S., 2008. "Technical challenges associated with the integration of wind power into power systems," Renewable and Sustainable Energy Reviews, Elsevier, vol. 12(3), pages 852-863, April.
    19. Strupeit, Lars, 2017. "An innovation system perspective on the drivers of soft cost reduction for photovoltaic deployment: The case of Germany," Renewable and Sustainable Energy Reviews, Elsevier, vol. 77(C), pages 273-286.
    20. Evans, Annette & Strezov, Vladimir & Evans, Tim J., 2009. "Assessment of sustainability indicators for renewable energy technologies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 13(5), pages 1082-1088, June.

    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:eee:rensus:v:11:y:2007:i:3:p:447-466. 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/600126/description#description .

    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.