Financial Analysis of Solar Rooftop PV System: Case Study in Indonesia

Elieser Tarigan
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Elieser Tarigan: Department of Electrical Engineering, Center for Environment and Renewable Energy Studies (PuSLET), University of Surabaya, Indonesia.

International Journal of Energy Economics and Policy, 2023, vol. 13, issue 3, 15-19

Abstract: The primary barrier to the dissemination of photovoltaic (PV) technology is its high cost as compared to other alternative options. This paper discusses some financial aspects of rooftop PV systems: module cost, BOS cost, useful lifetime, minimum attractive rate of return, and O&M cost. An equation and numerical calculation were made for estimating the unit cost of electricity of a rooftop system. The numerical calculation and simulation were made by taking the condition of Indonesia as the case study. It was assumed that (i) the useful lifetime of the PV system is 20 years, (ii) the annual maintenance cost is two percent of the total capital cost of the system, (iii) taxes and insurance costs are not to be paid, and (iv) capacity utilization is 20 percent. It is found that rooftop PV systems have the potential to provide power at competitive prices for residential with other alternative options for power generation.

Keywords: PV system; financial; rooftop; electricity; unit cost (search for similar items in EconPapers)
JEL-codes: C58 G18 H41 H50 Z18 (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eco:journ2:2023-03-3

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