Impact of the Self-Consumption of Electricity on the Profitability of the Investment into a Photovoltaic Installation: The Case of a Company in Poland

Agnieszka Joanna Drzymala and Ewa Korzeniewska

European Research Studies Journal, 2022, vol. XXV, issue 2, 316-332

Abstract: Purpose: The main aim of this paper is an attempt to calculate the impact of the self-consumption of electricity in an exemplary enterprise with the annual electricity demand 42.2 MWh on the profitability of investments in a photovoltaic installation from the point of view of the law introduced in Poland in 2021 - 2022. Approach/Methodology/Design: The analysis of the profitability of the photovoltaic power plant was carried out on the basis of the method of assessing the economic efficiency of an investment using the DCF method with the assumed discount rate. Findings: The obtained results can estimate the future value of the investment, capitalization, discounted value, i.e., the present capital value, which is derived from future income. Practical Implications: The obtained results will help to indicate what is the optimal (maximum) selection of the size of the photovoltaic installation based on the company's electricity demand in the Net-billing system applicable in Poland. Originality/Value: The obtained results may indicate that investing more capital in photovoltaics allows for the construction of an installation with greater power, but at the same time leads to a reduction in the self-consumption of electricity during its production and significantly affects the profitability of such an investment. Profitability estimation was carried out with reference to an alternative investment in relatively low-risk treasury bonds. The economic net present value assumes that the future buying or selling value of money will not be the same as it is today. Factors that significantly affect the investment profitability assessment are given.

Keywords: Renewable energy; photovoltaic power; cost-effectiveness of photovoltaic. (search for similar items in EconPapers)
JEL-codes: O13 Q42 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://ersj.eu/journal/2923/download (application/pdf)

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:ers:journl:v:xxv:y:2022:i:2:p:316-332

Access Statistics for this article

More articles in European Research Studies Journal from European Research Studies Journal
Bibliographic data for series maintained by Marios Agiomavritis ().