Comparative Viability of Photovoltaic Investments Across European Countries Using Payback Periods and the Levelized Cost of Energy

Electrical grids are undergoing a transformation driven by the increasing integration of renewable energy sources on the consumer side. This shift, alongside the electrification of consumption—particularly in areas such as electric mobility—has the potential to significantly reduce CO 2 emissions. However, it is also contributing to a rise in electricity prices due to growing demand and infrastructure costs. Paradoxically, these higher prices serve as a catalyst for further investment in renewable energy technologies by reducing the payback periods of such systems. Recent European legislation has accelerated this transformation by mandating the liberalization of energy markets. This regulatory shift enables the emergence of prosumers—consumers who are also producers of energy—by granting them the right to generate, store, and trade electricity using the existing distribution grid. In this new landscape, photovoltaic systems represent a viable and increasingly attractive investment option for both households and businesses. This study presents an economic evaluation of photovoltaic system investments across different European countries, focusing on key indicators such as payback periods and the impact of local solar irradiation on the resulting electricity price. The analysis provides insight into the varying economic feasibility of distributed solar energy deployment, offering a comparative perspective that supports both policymakers and potential investors in making informed decisions about renewable energy adoption.