PV Energy Communities in Residential Apartments: Technical Capacities and Economic Viability

Anna Mutule (), Olegs Borscevskis, Victor Astapov, Irina Antoskova, Paula Carroll and Evita Kairisa
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Anna Mutule: Institute of Physical Energetics, Smart Grid Research Centre, 14 Dzerbenes Str., LV-1006 Riga, Latvia
Olegs Borscevskis: Institute of Physical Energetics, Smart Grid Research Centre, 14 Dzerbenes Str., LV-1006 Riga, Latvia
Victor Astapov: Institute of Physical Energetics, Smart Grid Research Centre, 14 Dzerbenes Str., LV-1006 Riga, Latvia
Irina Antoskova: Institute of Physical Energetics, Smart Grid Research Centre, 14 Dzerbenes Str., LV-1006 Riga, Latvia
Paula Carroll: School of Business, University College Dublin, D04 V1W8 Dublin, Ireland
Evita Kairisa: Institute of Physical Energetics, Smart Grid Research Centre, 14 Dzerbenes Str., LV-1006 Riga, Latvia

Sustainability, 2025, vol. 17, issue 7, 1-21

Abstract: The Baltic countries are exploring diverse ways to achieve renewable energy objectives, with a particular emphasis on utilizing photovoltaic (PV) technologies in urban areas. Despite the northerly geographical location, PV energy has proven effective, particularly in individual households under the net metering scheme. Energy communities (EC) in urban areas have the potential to support sustainable energy transition by promoting local generation and increasing resilience. However, the broader adoption of rooftop PV systems faces numerous challenges, including technical limitations and legislative gaps. This study examines challenges encountered by community energy projects in residential apartments through a case study in the Latvian context. The paper provides a comparative analysis of PV community implementation scenarios across the three types of typical apartment buildings. The study demonstrates a number of fundamental obstacles that hamper the development of ECs in apartment buildings. The results indicate that the economic benefits of ECs largely depend on electricity market price, and that selection of optimal community design is the key aspect for minimizing investment risks amid market and legislative uncertainty. Results indicate that individual households may have limited motivation to form ECs under current policies. Finally, the insights provided help shape suggestions for future research.

Keywords: energy community; photovoltaic; residential apartments; electricity price; legislation; net present value (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2025
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