Identification and Analysis of Impact Factors on the Economic Feasibility of Photovoltaic Energy Investments

Rômulo de Oliveira Azevêdo, Paulo Rotella Junior, Luiz Célio Souza Rocha, Gianfranco Chicco, Giancarlo Aquila and Rogério Santana Peruchi
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Rômulo de Oliveira Azevêdo: Department of Production Engineering, Federal University of Paraíba, João Pessoa, 58051-900 PB, Brazil
Luiz Célio Souza Rocha: Department of Management, Federal Institute of Education, Science and Technology, North of Minas Gerais, Almenara, 39900-000 MG, Brazil
Gianfranco Chicco: Dipartimento Energia “Galileo Ferraris”, Politecnico di Torino, 10129 Torino, Italy
Giancarlo Aquila: Institute of Production Engineering and Management, Federal University of Itajubá, Itajubá, 35903-087 MG, Brazil
Rogério Santana Peruchi: Department of Production Engineering, Federal University of Paraíba, João Pessoa, 58051-900 PB, Brazil

Sustainability, 2020, vol. 12, issue 17, 1-40

Abstract: The introduction of environmental impact targets around the world has highlighted the need to adopt alternative sources of energy, which can supply the demand and mitigate the damage caused to the environment. Solar energy is one of the main sources of alternative energy, and is considered an abundant source of clean energy. However, to facilitate and encourage investors interested in the installation of photovoltaic energy systems for electricity production, it is essential to evaluate the factors that impact the economic viability of the projects. Therefore, the objective of this research is to present a systematic analytical framework, in order to identify and analyze the main factors that impact the financial feasibility of projects for the installation of photovoltaic energy plants. For this purpose, a systematic literature review was carried out, analyzing the main studies related to the topic and identifying the main factors that may financially affect investments in photovoltaic energy systems. From this review, 29 influencing factors were identified and separated into five categories, namely, location, economic, political, climatic and environmental, and technical factors. The main factors highlighted are the investment cost, power generation, operation and maintenance costs, solar radiation, lifetime, energy tariff, efficiency, electricity consumption, and interest and taxes. The results may assist policy makers, investors, researchers, and other stakeholders to identify the key factors that are being examined in the literature, and to evaluate which ones should be considered in their study to ensure the sustainable development of power generation through the solar source.

Keywords: solar energy; photovoltaic; economic viability; economic feasibility; risk factors (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

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