The Investability of PV Systems under Descending Feed-In Tariffs: Taiwan Case

Chun-Nan Chen and Chun-Ting Yang
Additional contact information
Chun-Nan Chen: Graduate Institute of Finance, National Taiwan University of Science and Technology, Taipei 10607, Taiwan
Chun-Ting Yang: Graduate Institute of Finance, National Taiwan University of Science and Technology, Taipei 10607, Taiwan

Energies, 2021, vol. 14, issue 9, 1-13

Abstract: The Taiwanese government has set an energy transition roadmap of 20% renewable energy supply by 2025, including a 20 GW installed PV capacity target, composed of 8 GW rooftop and 12 GW ground-mounted systems. The main trend of feed-in tariffs is downwards, having fallen by 50% over a ten-year period. Predicting the future ten-year equity internal rate of return (IRR) in this study, we examine the investability of PV systems in Taiwan when subsidies and investment costs descend. We have found that the projected subsidies scheme favours investment in small-sized PV systems. Unless the investment costs of medium-sized PV systems fall or subsidies rise over the next decade, investing in medium-sized PV systems will be less attractive. Nonlinear and linear degradation causes slight IRR differences when using higher-reliability modules.

Keywords: feed-in tariff; photovoltaic; investability; IRR (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
https://www.mdpi.com/1996-1073/14/9/2728/pdf (application/pdf)
https://www.mdpi.com/1996-1073/14/9/2728/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jeners:v:14:y:2021:i:9:p:2728-:d:551726

Access Statistics for this article

Energies is currently edited by Ms. Agatha Cao

More articles in Energies from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().