An economic evaluation of photovoltaic grid connected systems (PVGCS) in Flanders for companies: A generic model

Amaryllis Audenaert, Liesje De Boeck, Sven De Cleyn, Sebastien Lizin and Jean-François Adam

Renewable Energy, 2010, vol. 35, issue 12, 2674-2682

Abstract: In this paper an economic evaluation of photovoltaic grid connected systems (PVGCS) for companies situated in Flanders (Belgium) is conducted by using a generic Excel model. The model is unique in that it includes the dimension of taxation. This inclusion is required, otherwise the fiscal benefit of using solar panels is not accounted for. The model uses the cash flow projection method. This technique allows the calculation of the following classical evaluation criteria: net present value, internal rate of return, payback period, discounted payback period, profitability index, yield unit cost, yield unit revenue and break-even turnkey cost. Their outcome makes it possible to answer the question whether installing a PVGCS in Flanders is a responsible financial investment for companies. Furthermore, the paper estimates whether the corporate environment is ready for a subsidy legislation change. This change has recently been announced and as such it is possible to gauge whether the current market situation is profitable given future legislation.

Keywords: PVGCS; Economic evaluation after taxes; Companies in Flanders (Belgium); Future legislation sensitivity analysis (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (18)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:renene:v:35:y:2010:i:12:p:2674-2682

DOI: 10.1016/j.renene.2010.04.013

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