Technical and Financial Analysis for the Implementation of Small-scale Self-generation Projects, based on Grid-Tied Photovoltaic Solar Energy, for Residential Users under Colombian Regulations

Yecid Muñoz, Ciro Alfonso Suarez, Adalberto Ospino Castro and Omar Julián López
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Yecid Muñoz: Facultad de Ingeniería, Universidad Autónoma de Bucaramanga, Bucaramanga, Colombia
Ciro Alfonso Suarez: Facultad de Ingeniería, Universidad Autónoma de Bucaramanga, Bucaramanga, Colombia
Adalberto Ospino Castro: Departamento de Energía, Universidad de la Costa, Barranquilla, Colombia
Omar Julián López: Facultad de Ingeniería, Universidad Autónoma de Bucaramanga, Bucaramanga, Colombia

International Journal of Energy Economics and Policy, 2024, vol. 14, issue 2, 197-205

Abstract: The study focuses on integrating non-conventional renewable energy sources into Colombia's power system. The regulatory framework allows small prosumers to trade energy surpluses with grid operators. The research analyzes the financial feasibility of implementing photovoltaic systems for residential users. Technical aspects governing energy production and implementation costs are examined. Colombian residential users, divided into six socioeconomic strata, undergo individual analysis based on their energy rates and consumption patterns. The study area is Bucaramanga, known for intermediate solar potential. Precise cost estimates for implementing photovoltaic systems that meet user energy requirements are provided. Financial viability indicators (NPV, IRR, Payback Time) are evaluated for three scenarios: existing energy prices, 50% government financing, and a 10% tariff reduction due to government intervention. Results show financial viability for strata 4, 5, and 6, but not for strata 1, 2, and 3. Government intervention can make strata 2 and 3 feasible. Lowering the kWh price adversely impacts the project's financial feasibility for all strata, particularly the lower-income ones. The study is valuable for potential investors and policymakers seeking to promote photovoltaic systems in the residential sector. It provides insights into economic viability and helps develop effective policies for Colombia's sustainable energy transition.

Keywords: Regulations; Photovoltaic; Grid-Tied; Residential (search for similar items in EconPapers)
JEL-codes: P48 Q42 (search for similar items in EconPapers)
Date: 2024
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