Is switching to solar energy a feasible investment? A techno-economic analysis of domestic consumers in Spain

Eloi Codina, Bruno Domenech, Marc Juanpera, Leopold Palomo-Avellaneda and Rafael Pastor

Energy Policy, 2023, vol. 183, issue C

Abstract: Grid-connected photovoltaic (PV) facilities are more attractive than ever due to the electricity price surges and the reduction of solar energy generation costs. This paper develops a solving procedure including a simulation model to analyze the techno-economic performance of PV-battery facilities, taking into account the latest Spanish regulatory framework. The procedure finds the best facilities for multiple objectives, maximum profitability and maximum self-sufficiency, in different locations, load profiles and economic scenarios. The results indicate that PV modules are profitable without subsidies, with installations between 1 and 6 kWp. Meanwhile, batteries are only convenient when seeking maximum independence from the grid, with capacities up to 9 kWh. The findings suggest that the economic feasibility of facilities is influenced by the location and compensation rate surplus electricity, while the facility is mainly determined by the load profile. A sensitivity analysis shows that a variation in grid tariffs and technology prices has a limited impact on the facility's size but modifies the system's profitability. Finally, an analysis of the latest unprecedented grid price surges indicates that self-consumption facilities help become a more resilient society against unexpected events. Therefore, policymakers should keep promoting the adoption of these technologies and keep the current advantageous regulations.

Keywords: Self-consumption; Techno-economic analysis; Residential solar facilities; Batteries; Spain (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0301421523004196
Full text for ScienceDirect subscribers only

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:eee:enepol:v:183:y:2023:i:c:s0301421523004196

DOI: 10.1016/j.enpol.2023.113834

Access Statistics for this article

Energy Policy is currently edited by N. France

More articles in Energy Policy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().