Techno-economic assessment of residential PV system tariff policies in Jordan

Mohammad Alrbai, Loiy Al-Ghussain, Sameer Al-Dahidi, Osama Ayadi and Sahban Al-naser

Utilities Policy, 2025, vol. 93, issue C

Abstract: This study assesses the economic and technical performance of four energy policy scenarios for Jordan's residential photovoltaic (PV) systems: net metering, net billing, zero-export with battery storage, and sell-all-buy-all. With the recent introduction of time-of-use (TOU) tariffs and policies addressing the “duck curve” effect, the research focuses on optimizing PV system sizing across different regulatory frameworks. A detailed techno-economic analysis evaluates these scenarios based on energy production, cost savings, payback periods, and energy self-sufficiency. The findings indicate that net metering and net billing offer the highest cost savings and the shortest payback periods (∼3 years). While the zero-export strategy with battery storage enhances energy self-sufficiency by up to 70%, it requires a higher upfront investment. The sell-all-buy-all scenario supports larger system sizes, achieving a low levelized cost of electricity (0.0696 USD/kWh) and a net present value of 619 USD. Additionally, the study identifies a critical feed-in tariff threshold of 0.055 USD/kWh, at which net billing becomes as financially attractive as net metering. These insights offer valuable recommendations for policymakers to optimize net billing rates and TOU tariffs, promoting the expansion of Jordan's renewable energy sector.

Keywords: Energy policy; Battery storage; Time-of-use tariffs; Solar PV; Feed-in tariff; Optimization (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:juipol:v:93:y:2025:i:c:s0957178725000098

DOI: 10.1016/j.jup.2025.101894

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