A Case Study of Green Energy Roofs in Taiwan Using Financial Analyses

Meng-Yi Liu and Dan Lin
Additional contact information
Meng-Yi Liu: Department of Risk Management and Wealth Planning, Takming University of Science and Technology, Taipei, Taiwan
Dan Lin: Department of Banking and Finance, Takming University of Science and Technology, Taipei, Taiwan

International Journal of Finance & Banking Studies, 2021, vol. 10, issue 3, 12-20

Abstract: As part of the low-carbon policy and development in Taiwan, the Bureau of Energy introduced the “Green Energy Roofs Project” in 2017, which encouraged homeowners to install green energy roofs. However, the incentives of homeowners and solar photovoltaic operators to participate in this Project were low. The aim of this study is to propose and evaluate alternative models for investing green energy roofs. The contributions of this study are that, first, we consider factors such as risk management schemes and crowdfunding that have not been considered in evaluating green energy roofs project. In addition, this study provides a solution to Taiwan government’s current dilemma about how to encourage homeowners to install green energy roofs. This study adopts five common investment appraisal methods (including payback period, discounted payback period, net present value, internal rate of return and profitability index) to evaluate four different models for investing green energy roofs. The results show that when homeowners are fully responsible for installation costs of green energy roofs with partial funds borrowed from banks and with consideration of risk management, the homeowners have better investment returns. Therefore, the Taiwan government could consider the alternative strategy proposed in this study for promoting green energy roofs so that the country can move a bigger step forward towards the goal of being nuclear-free.

Keywords: Green Energy Roofs; Investment Decisions; Solar Photovoltaic System (search for similar items in EconPapers)
Date: 2021
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.ssbfnet.com/ojs/index.php/ijfbs/article/view/1288/943 (application/pdf)
https://www.ssbfnet.com/ojs/index.php/ijfbs/article/view/1288 (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:rbs:ijfbss:v:10:y:2021:i:3:p:12-20

Access Statistics for this article

International Journal of Finance & Banking Studies is currently edited by Prof.Dr.Hasan Dincer

More articles in International Journal of Finance & Banking Studies from Center for the Strategic Studies in Business and Finance IJFBS Editorial Office, IMU, School of Business. Contact information at EDIRC.
Bibliographic data for series maintained by Hasan Dincer ().