Industrial Photovoltaic Systems: An Economic Analysis in Non-Subsidized Electricity Markets

Federica Cucchiella, Idiano D’Adamo and Paolo Rosa
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Federica Cucchiella: Department of Industrial and Information Engineering and Economics, University of L’Aquila, Via G. Gronchi 18, L’Aquila 67100, Italy
Idiano D’Adamo: Department of Industrial and Information Engineering and Economics, University of L’Aquila, Via G. Gronchi 18, L’Aquila 67100, Italy
Paolo Rosa: Department of Management, Economics and Industrial Engineering, Politecnico di Milano, Piazza L. Da Vinci 32, Milano 20133, Italy

Energies, 2015, vol. 8, issue 11, 1-16

Abstract: Photovoltaic (PV) systems are becoming a relevant electricity source, characterised by a growing trend in the last years. This paper analyses the economic feasibility of investments in industrial PV systems of different sizes (200 kW, 400 kW, 1 MW, and 5 MW), in the absence of subsidies, and in a mature market (Italy). The selected indicators for this kind of assessment are net present value (NPV) and discounted payback time (DPBT). Furthermore, the environmental advantage in comparison to fossil sources of energy is evaluated through the reduction of carbon dioxide emissions (ER cd ). Finally, a sensitivity analysis on critical variables (percentage of self-consumed energy, average annual insolation rate, annual electricity purchase price, annual electricity sale price, unitary investment cost and opportunity cost) is conducted. Results highlight the strategic role of self-consumption in a market characterised by an absence of public policy incentives and the presence of interesting economic opportunities for industrial applications.

Keywords: economic analysis; photovoltaic (PV) systems; sensitivity analysis; sustainability (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: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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