Residential solar power profitability with thermal energy storage and carbon-corrected electricity prices

Hannu Huuki, Santtu Karhinen, Herman Böök, Chao Ding and Enni Ruokamo ()

Utilities Policy, 2021, vol. 68, issue C

Abstract: We study the economic profitability of residential solar photovoltaic (PV) systems in Finland. We show a moderate rate of returns (1.0% in Northern and 1.4% in Southern Finland) for the PV system investments with time-of-use hot water heating. Optimized hot water heating increases the rate of return by 0.6 percentage points. We internalize the negative externalities of greenhouse gas emissions from electricity generation by presenting the hourly electricity prices as a function of emission permit costs. A 10 €/tCO2 increase in carbon price improves the PV investment rate of return by 0.3 percentage points.

Keywords: Residential solar PV; Load control; Social cost of carbon (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:juipol:v:68:y:2021:i:c:s0957178720301478

DOI: 10.1016/j.jup.2020.101157

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