EconPapers    
Economics at your fingertips  
 

Market penetration and pay-back period analysis of a solar photovoltaic system under Indian conditions

Mohan Lal Kolhe

General Economics and Teaching from EconWPA

Abstract: The use of pay-back period analysis for economic evaluation of solar photovoltaic (PV) system reinforces the importance of the duration of the system. In a dynamic economic environment, the cost of energy increases at a faster rate than the common inflation rate. A time can be ascertained at which the market entry of the PV system will be profitable, i.e. at which the pay-back time drops below a value considered as the market threshold, provided the parameters describing the dynamic economic system remain unchanged. The market penetration of the PV system has been determined in Indian economic conditions and found to depend mainly on PV array costs and energy income reinvestment rate. The low PV array cost, high-energy income reinvestment rate, high solar cell reference efficiency and high battery efficiency have a substantial effect on the reduction of the energy price and pay-back period with early market penetration by the PV system. Keywords: photovoltaic (PV) system; pay-back period; market penetration; renewable energy economics.

Keywords: renewable energy economics; pay-back period; market penetration; solar photovoltaic (PV) system. (search for similar items in EconPapers)
JEL-codes: A (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cwa and nep-ene
Date: 2005-12-07
Note: Type of Document - pdf; pages: , .
References: Add references at CitEc
Citations Track citations by RSS feed

Downloads: (external link)
http://econwpa.repec.org/eps/get/papers/0512/0512004.pdf (application/pdf)

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: http://EconPapers.repec.org/RePEc:wpa:wuwpgt:0512004

Access Statistics for this paper

More papers in General Economics and Teaching from EconWPA
Series data maintained by EconWPA ().

 
Page updated 2015-09-08
Handle: RePEc:wpa:wuwpgt:0512004