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The Effect of Retail Electricity Price Levels on the FI Values of Smart-Grid Rooftop Solar Power Systems: A Case Study in the Central Highlands of Vietnam

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  • Tran Thi Lan

    (Faculty of Environmental Management, Prince of Songkla University, Hat Yai, Songkhla 90112, Thailand
    Faculty of Economics, Tay Nguyen University, Đắk Lắk 630000, Vietnam)

  • Sopin Jirakiattikul

    (Faculty of Economics, Prince of Songkla University, Hat Yai, Songkhla 90112, Thailand)

  • M. S. Chowdhury

    (Faculty of Environmental Management, Prince of Songkla University, Hat Yai, Songkhla 90112, Thailand
    Environmental Assessment and Technology for Hazardous Waste Management Research Center, Faculty of Environmental Management, Prince of Songkla University, Hat Yai, Songkhla 90112, Thailand
    Program of Sustainable Energy Management, Faculty of Environmental Management, Prince of Songkla University, Songkhla 90112, Thailand)

  • Dilawer Ali

    (Program of Sustainable Energy Management, Faculty of Environmental Management, Prince of Songkla University, Songkhla 90112, Thailand)

  • Le Duc Niem

    (Faculty of Economics, Tay Nguyen University, Đắk Lắk 630000, Vietnam)

  • Kuaanan Techato

    (Faculty of Environmental Management, Prince of Songkla University, Hat Yai, Songkhla 90112, Thailand
    Environmental Assessment and Technology for Hazardous Waste Management Research Center, Faculty of Environmental Management, Prince of Songkla University, Hat Yai, Songkhla 90112, Thailand
    Program of Sustainable Energy Management, Faculty of Environmental Management, Prince of Songkla University, Songkhla 90112, Thailand)

Abstract

Smart-grid rooftop solar electricity (SG rooftop PV) is an alternative sustainable energy resource. This research was conducted in the Central Highlands of Vietnam (CHV) in light of the different levels of retail electricity pricing, the sunshine duration, and the implementation of a feed-in-tariff system, in order to calculate the financial indicators (FIs) of SG rooftop PV, which would supply investors, companies supplying SG rooftop PV, and policymakers with useful information. The FI values were calculated based on the net present value, the payback period, and the internal return rate. The results show that the electricity retail price level affects the FI of SG rooftop PV. SG rooftop PV is installed to satisfy higher electricity consumption levels, which attracts a higher retail electricity price. As a result of the greater benefits, especially if SG rooftop PV is installed and the highest level of electricity (exceeds 400 kWh) is used to satisfy domestic consumption, users will recoup their investment in only four years and after that will enjoy free electricity. All the FI values derived from this research show that people in the CHV can derive benefits from installing SG rooftop PV.

Suggested Citation

  • Tran Thi Lan & Sopin Jirakiattikul & M. S. Chowdhury & Dilawer Ali & Le Duc Niem & Kuaanan Techato, 2020. "The Effect of Retail Electricity Price Levels on the FI Values of Smart-Grid Rooftop Solar Power Systems: A Case Study in the Central Highlands of Vietnam," Sustainability, MDPI, vol. 12(21), pages 1-22, November.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:21:p:9209-:d:440491
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    2. Hui Fang Yu & Md. Hasanuzzaman & Nasrudin Abd Rahim & Norridah Amin & Noriah Nor Adzman, 2022. "Global Challenges and Prospects of Photovoltaic Materials Disposal and Recycling: A Comprehensive Review," Sustainability, MDPI, vol. 14(14), pages 1-41, July.
    3. Chandel, Rahul & Chandel, Shyam Singh & Malik, Prashant, 2022. "Perspective of new distributed grid connected roof top solar photovoltaic power generation policy interventions in India," Energy Policy, Elsevier, vol. 168(C).
    4. Ceferino, Luis & Lin, Ning & Xi, Dazhi, 2023. "Bayesian updating of solar panel fragility curves and implications of higher panel strength for solar generation resilience," Reliability Engineering and System Safety, Elsevier, vol. 229(C).
    5. Tung Nguyen Thanh & Phap Vu Minh & Kien Duong Trung & Tuan Do Anh, 2021. "Study on Performance of Rooftop Solar Power Generation Combined with Battery Storage at Office Building in Northeast Region, Vietnam," Sustainability, MDPI, vol. 13(19), pages 1-15, October.

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